Energy: Wind Farms

Baroness Stowell of Beeston Excerpts

Wednesday 9th November 2011 Lords Chamber

[Baroness Stowell of Beeston]

My Lords, I thank the noble Lord, Lord Thomas of Gresford, for initiating this debate and I am grateful for the contributions from all noble Lords.

The introduction of wind farms is a significant matter and, like any significant matter that brings about change, it will always attract comment and some concern. On matters such as this, it is important that people have a chance to voice their opinions and that Ministers listen. I am certainly grateful for the opportunity to listen tonight and to respond to some of the points that have been raised.

With something of this significance, it is usual for people in their communities to want to understand what the overall objective is and what we are trying to achieve. People will want to know about and understand the process. They will want to know how decisions are made, what criteria determine those decisions, whether all issues that are of concern to them are being taken into account, and whether they can have a say. People also, quite rightly, want to know what the gains are from these decisions and whether they are gains from which they, too, can benefit.

Perhaps I should start by reminding your Lordships that the Government have three strategic aims in relation to energy and climate change: to secure the supply of energy—what we often talk about as keeping the lights on; to minimise costs to consumers; and to cut fossil fuel emissions so that we play our part in taking care of the planet for the sake of future generations. Renewable energy is vital to delivering our strategic aims and we are committed to it. Appropriately sited onshore wind needs to be part of our energy mix because it is one of the most cost-effective and established renewable technologies.

The noble Lord, Lord Howie of Troon, for whose expertise in and knowledge of all matters engineering I have great respect, talked about the intermittency of wind energy. Wind power is not in and of itself the answer—no one is suggesting that it is a solution—but it is an important part of the mix. Other noble Lords talked about other renewable technologies that are out there. The noble Lord, Lord Rowe-Beddoe, and my noble friend Lady Randerson mentioned the Severn barrage and asked what is happening with it. If a private company were to come forward with a new proposal for a Severn barrage, the Government would listen and would definitely want to hear what it had to say. However, it is worth my pointing out that even an option such as that would still require major grid reinforcements to connect it to the national grid.

Noble Lords also asked about other options. The noble Lord, Lord Rowe-Beddoe, asked what other renewables we are considering and mentioned biomass fuel. I take this opportunity to remind noble Lords that in July this year the Government published their renewables road map, which set out the various renewable technologies that would form part of their plan for hitting the target of 20 per cent of renewables by 2010. The noble Baroness mentioned a figure of 30 per cent but the target is actually 20 per cent. Biomass plays an important part in that. Indeed, it is one of the leading contributors.

Returning to wind power, my noble friend Lord Thomas of Gresford and other noble Lords mentioned the recent KPMG report and its criticisms of wind power. It is important that I point out, as did my noble friend Lord Teverson, that, in focusing exclusively on the upfront capital costs of technologies, the report does not take into account the long-term benefits to consumers of energy sources that involve no ongoing fuel costs. Let us be clear: unlike other types of fuel, wind is free. The noble Baroness, Lady Smith of Basildon, asked how we can go about reducing the capital costs of wind farms. I shall have to explore that and will write to the noble Baroness.

Affordability obviously figures in all our decisions. Nothing is more important to consumers today and that will continue into the future. That is why we are reshaping our renewable subsidies to get a better bang for the buck, targeting support where it is needed and driving costs down in the long run. For example, we are consulting on proposals to reduce the level of support to onshore wind by one-tenth in the renewables obligation banding review. I am talking about the subsidies to those who operate onshore wind farms. We are also consulting on the proposed introduction of new feed-in tariffs for solar panels based on the evidence of falling costs. Although some might question the reduction in subsidies, as the noble Baroness, Lady Smith of Basildon, did, let us not forget that the cost of all these subsidies is paid for by bill payers. These subsidies are not met from general taxation. Overall, the long-term national interest lies in cutting carbon and keeping the lights on in the most cost-effective way possible and substantial amounts of renewable energy will be needed to do that.

If that is the what and the why of what we are trying to do, let me now turn to how we decide, which has been an important topic of today’s debate. Clearly I recognise, as do the Government, that proposed onshore wind developments in Wales and their associated energy infrastructure have raised a lot of interest and debate in recent months. Your Lordships will understand that I cannot comment on specific applications, but let me say something about the process. First, the Welsh Government’s TAN 8 policy has designated specific areas in mid-Wales as strategic search areas, sometimes known as SSAs, as potential locations for major wind farms. The noble Lord, Lord Williams of Elvel, and my noble friend Lady Randerson questioned the validity of TAN 8, but that is a matter for the Welsh Assembly. It is not something for me to comment on. It is a devolved matter.

Local authorities in Wales are responsible for deciding planning applications within the devolved planning policy for smaller—less than 50 megawatt—farms. The Westminster Government are responsible for deciding on major energy infrastructure projects that affect Wales. Some may argue, as some of your Lordships have this evening, that it is not appropriate for UK Ministers to make decisions on major infrastructure applications in Wales, but UK Ministers are accountable to Welsh voters, as they are to English voters. We believe that it is appropriate for UK Ministers to take these decisions on major infrastructure of national importance and of relevance to the UK Government’s wider strategic aims that I have already outlined.

I will not take up your Lordships’ time by trying to describe the different processes and policies that are followed, because they are quite detailed, but the key thing for me to stress is that regardless of whether applications are dealt with nationally or locally, communities must be and are being consulted on all proposed developments before decisions are reached. Crucially, all decisions are taken on a case-by-case basis so that local factors can be taken fully into account.

Mid-Wales is a beautiful part of the United Kingdom. It is important that wind farms are sited correctly and wind energy developers are guided away from the most sensitive landscapes, such as national parks and areas of outstanding natural beauty. Moreover, protections are in place to ensure that detailed environmental assessments are made in the preparation of planning applications, including, most importantly—and I will stress this—an assessment of cumulative impact.

I know that it is not just the wind farms that are causing concern. My noble friend Lord Thomas of Gresford and others have asked about the supporting infrastructure. As there is no existing high-voltage network in this part of Wales, the necessary infrastructure to make these connections will have to be built. Connection options are currently being developed by National Grid and ScottishPower Energy Networks. The applications for these connections will be decided by the appropriate planning authorities. Many people feel very strongly about pylons and the impact they can have on the landscape. Effective consultation with local communities and other interested parties is therefore a vital part of the planning process and this is ongoing. An important point I would like to stress is that National Grid has also recently announced that it will put greater emphasis on mitigating the visual impact of its new electricity lines, while balancing this with the obvious need to minimise household energy bills. People in areas potentially affected can therefore be reassured that alternatives to overhead lines are being actively explored.

I wanted to talk about the economic benefits of wind farms to us as a nation and to local communities. My noble friend Lord Teverson has covered some of these already. I would like to pick out a couple of points. The wind sector in Wales is creating high-value jobs. The average wage for those jobs is around £44,000 a year. The annual contribution to the Welsh economy is estimated at £158 million a year. We have consulted on a proposal for communities in England to retain the business rates generated by renewable energy developments. This matter would be devolved in Wales, but I would urge influential noble Lords with connections to the Welsh Assembly to highlight what is happening in England and the benefits that may be enjoyed in Wales if it was to follow that idea. A good example of a wind farm developer making sure that there are direct local benefits is the Cefn Croes Wind Farm Community Trust, funded by Cambrian Wind Energy.

Appropriately sited onshore wind farms make a vital contribution to our strategic aims. They are also important to our economic growth. This coalition Government support appropriately sited onshore wind. We will make decisions about where they are located with great care. We will make sure that communities can benefit directly from renewable energy developments in their area. I shall of course ensure that all the points made this evening are relayed accurately back to the department. I thank once more my noble friend for initiating this debate.