(7 years, 5 months ago)
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Sir David, it is as ever a great pleasure to serve under your constituency—under your chairmanship; I am sure your constituents feel the same about your activities on constituency days. In my first Westminster Hall debate, you were a mere Mr Amess. I am delighted you are here.
The right hon. Member for Orkney and Shetland (Mr Carmichael)—I remember when he was my right hon. Friend—is a gentleman in the true sense. The way he has conducted the debate, on a subject in which he has a lot of interest and expertise, and the way he speaks up for renewable energy generation in island communities, is truly commendable. As he is fully aware, he has me at a little disadvantage, as I have been in the job for precisely three weeks. I am not yet the expert he is, but I would like to make it clear to him and other Members that I have listened carefully to every word and intend to set out the Government’s position in what I hope he will accept is the right way at this stage.
We know that the islands have long been a hotbed for innovations in renewable energy generation. The Burgar Hill wind turbine site in Orkney, for example, hosted some of the most innovative experimental turbines in the ’80s and early ’90s. As has been said, the European Marine Energy Centre, which is also located on Orkney in the right hon. Gentleman’s constituency, has since its creation more than 10 years ago maintained its position as the world’s leading wave and tidal stream testing facility. The fact that it has hosted the prototypes for almost all the world’s leading devices, including the Atlantis turbines deployed in the Pentland Firth last summer, is a testament to its premier global status.
I also understand that the grid infrastructure necessary to support the proposed wind farms on the remote islands of Scotland could, if built, act as a springboard for further development of our wave and tidal sector and give this emerging industry a further boost towards commercialisation, helping to maintain the UK’s leading position in these technologies. The challenge for the wave and tidal sector will be to innovate and to reduce its costs sufficiently that it can compete with other renewable technologies. Those costs have fallen significantly during the past few years, and we fully expect that downward trajectory to continue. This is now a very competitive market, and developers will need to respond to that challenge; the sector can no longer take high subsidies for granted.
As the right hon. Gentleman is aware, my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy visited the Western Isles this year to learn about this issue at first hand. The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) kindly hosted the Secretary of State’s visit, and I shall take this opportunity to thank him again for what my right hon. Friend described as a productive and informative trip. I know that it will not help or please the right hon. Gentleman unless some action is taken, as he has pointed out to me.
The issues are clear, and we know what the gains are. I shall go through the issues in no particular order. The first is ensuring healthy competition to support the best projects and get the best value for the consumer, while recognising that it may take a certain volume of projects to justify building the all-important new island-to-mainland links. I am aware that those are a vital piece of the overall picture, with their own timeframes and set of complex decisions, so there are really two areas of decision.
The second issue, as the Secretary of State made clear, is ensuring that local communities, which have been enthusiastic about this industry, receive appropriate benefits for hosting these projects.
Excuse me, Sir David, if I do not quite get some of the etiquette right.
I thank my hon. Friend the Minister for what he has said about the importance of the popularity of tidal and other energy-efficient projects. It is right to say that islanders can play an important role, but does he agree that energy policies should take into account other policies such as regard for the landscape? Wind turbines were very unpopular with many of my constituents, because of the damage that they did to the landscape in areas of outstanding natural beauty, but solar panels are more popular. Should wave and tidal power take off, there would be, again, an aesthetic element as well. It is wonderful to have these things, but that should not be at the expense of a tourism economy in a place such as the Isle of Wight.
I thank my hon. Friend for his intervention. Time does not permit me to answer in full, but I would be happy to meet and discuss this subject with him on behalf of his constituents.
Thirdly, we have to define what is meant by “island wind projects” in a legal context, and that is being done; we are working through the issues. The right hon. Member for Orkney and Shetland is very aware of that matter.
Last but not least, we need to give clarity to the developers of island projects while being fair to developers of other projects elsewhere and to consumers across the UK.