Onshore Wind Subsidies Debate

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Caroline Flint

Main Page: Caroline Flint (Labour - Don Valley)

Onshore Wind Subsidies

Caroline Flint Excerpts
Monday 22nd June 2015

(8 years, 10 months ago)

Commons Chamber
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Caroline Flint Portrait Caroline Flint (Don Valley) (Lab)
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I thank the Secretary of State for advance notice of her statement today at 2.22 pm.

It is only four days since I heard the Secretary of State on the “Today” programme, explaining her Government’s policy changes to onshore wind. That was followed by a written statement later that morning, along with a written statement from the Department for Communities and Local Government on the same subject. Today, she has been forced to come to the House because of the confusion and concern that she has caused. There is concern about the Government’s commitment to our renewables targets and to supporting value for money. There is confusion as to how her policy will apply in practice, and confusion across the renewables sector, where certainty to encourage investment is paramount.

I made it clear to the onshore wind sector before the general election that, although I did not support a cap, a clear pathway to being subsidy-free was an outcome I wanted, so why do I have doubts about the Secretary of State’s announcements? We know, despite the fact that something like 69% of the public support onshore wind—it is the most popular of the renewable energy-generating supply technologies—[Interruption.] It is true. We know that the Secretary of State wants to appease many of her Back Benchers, who seem to hate onshore wind, although one of them is making money out of a solar farm. The election promise of a cap on onshore wind was music to their ears, although they were probably not aware that nearly 1,000 projects had planning permission. It is not clear to me and many others whether the sum of all the Secretary of State’s rhetoric really adds up.

The Secretary of State has proposed a grace period for projects that, as of last week when the written statement was made, had in place planning consent, access to the grid and land rights. Can she confirm that, according to her statement today, that means something like 75% of onshore wind projects with consent will go ahead? The changes to the rules will have to be done through primary legislation, and it could be at least six months between last week’s statement and Royal Assent.

Can I ask the Secretary of State whether, as part of her consultation, she is open to projects that have planning consent, a grid access offer and all land rights sorted before Royal Assent being able to continue with the RO arrangement to 2017? In last week’s press release, the Department of Energy and Climate Change said that up to 5.2 GW of onshore wind power could still qualify, but other estimates are much lower.

In her statement, the Secretary of State referred to 11.6 GW, putting us in the mid-range of fulfilling our 2020 targets for renewable energy. Does that include the 5.2 GW figure? If 5.2 GW is an overestimate, that presumably makes meeting our target less likely. Given that we found out last week that we have already missed our interim 2020 EU renewable targets, that is extremely concerning. What discussions has she had with the Secretary of State for Communities and Local Government about how many local or neighbourhood plans are required to identify areas suitable for wind energy? What additional costs may be incurred by councils having to pre-empt planning applications to avoid a company challenging a decision? Out of interest and in the interests of a logical argument, why do these changes to planning policy not apply to all energy generation?

UK-wide energy policy has enabled all of us to share the risks and rewards of developing new and old forms of energy. While Scotland makes up just over 10% of UK households, over 30% of operational onshore wind projects are located in Scotland because of the amount of wind and the contribution of UK-wide bill payers, so it is understandable that Scotland will be worried about the impact on jobs and investment there. What will the Secretary of State do to give confidence to colleagues in the devolved institutions that there will be a genuine process of consultation?

Despite the Prime Minister’s warm words on tackling climate change in this most important year of global negotiations, this Parliament has hardly begun and the cheapest form of renewable energy is already under attack, and other renewable investors are worried that they will be next. I want our country to go forwards, not backwards. This debate is not about hot air; it is about jobs, manufacturing and investment opportunities at risk across the sector. In her answers today, the Secretary of State needs to convince us that she understands what is at stake.

Amber Rudd Portrait Amber Rudd
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I thank the right hon. Lady for her comments. May I first take the opportunity to remind her that this policy was well set out before she heard me on the “Today” programme? It was in the Queen’s Speech, in the manifesto and the Prime Minister had referred to the fact that a Conservative Government would take this action. I have in no way been forced to come here. I chose to come here to make a statement after a number of colleagues wanted the opportunity to have their voice heard in support of what is happening. I am delighted to give them the opportunity to do so.

The right hon. Lady chose to question the Conservative party’s commitment to addressing our climate change obligations. Fortunately, she gave me the opportunity to talk about that just 10 days or so ago, when one of the first Opposition-day debates of the Parliament was about climate change. I was able to tell her and the House about the Government’s commitment to meeting the targets and the commitment of the Government and the Prime Minister to getting a deal in Paris this year. We are committed to ensuring that we deliver on our decarbonisation targets but, just as importantly, we are committed to getting a global deal. We do not want to do this alone. We need to provide leadership in the EU and internationally to ensure that our effort is truly leveraged so that we can get that result at the end of the year.

It is disappointing that the right hon. Lady chooses to throw confusion where none exists. I think I was very clear in my statement about the gigawatts involved and the range that we were targeting, but I repeat for her that we hoped to have 10% of electricity generation from wind by 2020, and we are reaching that target early. That is a key reason for ending the subsidy for onshore wind now. We wanted to fall in the middle of the range, and in fact it looks likely that we will be slightly towards the upper end. Having achieved that, it is right that we do not put further pressure on people’s bills. Unlike her and the Labour party, we believe that we can do this in a cost-effective way. We are absolutely committed to supporting renewables, but we want to do it by the most low-cost pathway we can.

In answer to the right hon. Lady’s question about regulation, and particularly planning permission for different sources of energy, it is right that different sources have different types of regulation and fall under different planning regimes. Part of what we are trying to do is to encourage new energy sources, in order to meet our targets and lead to cost reductions. That is why we have different set-ups for different sources—to get the best outcome for both our targets and bill payers.

Finally, the right hon. Lady asked me about Scotland. I have no doubt that I will be answering questions from Scottish National party Members, and I look forward to taking them and addressing them. I have had many conversations with the devolved Administrations, and I look forward to taking further questions from them.