Charles Hendry
Main Page: Charles Hendry (Conservative - Wealden)(13 years, 7 months ago)
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The Minister of State, Department of Energy and Climate Change (Charles Hendry)
It is a great pleasure to serve under your chairmanship, Mr Bayley. I congratulate my hon. Friend the Member for Daventry (Chris Heaton-Harris) on securing the debate. It is a great shame for the whole House that he did not get an hour-and-a-half debate, because there is no doubt that he and the Members here today could have filled the time.
In the remaining 13 minutes I want to go through the issues raised so far and put them in the context of the role that wind has to play in our energy security and our move to a low-carbon economy. I assure my hon. Friend that I understand the concerns that he and others have raised, and as Minister I have taken some of the actions that are designed specifically to address them. Wind has a contribution to make and an integral part to play in dealing with energy security and tackling climate change. We cannot separate security of supply from a low-carbon economy, we cannot have security of supply without a low-carbon economy and we cannot have a low-carbon economy without security of supply. We see those elements as going together, and without them we will not have affordable pricing.
As hon. Members know, we have seen significant growth in the deployment of onshore wind in this country and we expect it to increase over the years ahead. It will be a low-carbon technology that makes the most significant contribution to enabling us to meet our low-carbon commitments in future, but that must be done in a way that takes account of the views of local communities, and one of the most important changes we shall make will address that: people will see the benefits accrue to their communities from hosting facilities that they may not have chosen.
Charles Hendry
I will give way this once, but I am concerned about answering the questions already raised.
Julian Smith
Is the Minister shocked at the behaviour of some wind companies? Speaking for my constituents, the bullying of local communities, particularly in rural areas, by wind companies has been shocking. I would appreciate his comments on that.
Charles Hendry
I am not aware of the specific cases to which my hon. Friend refers. If he writes to me, I will be more than happy to look into them.
We have to move to a greater spirit of partnership so that communities can see precisely what they would get out of hosting a facility and realise that genuine benefits would come to them—not necessarily from a wind farm but from other facilities, as well. Other countries have gone down a similar route and we are learning from the approaches that they have taken. We have also seen the significant number of green jobs generated here, albeit not as many as we would have wished from the supply-chain benefits coming to the United Kingdom, and the potential that that brings
I realise that my hon. Friends who contributed to the debate are less concerned about that aspect than they are about the implications of onshore wind for their constituencies, so I particularly want to address those issues. We have seen the benefits from offshore wind, but we recognise that communities often feel concerned that proposed wind farms in their areas will destroy the environment or have other negative impacts. We are convinced that, in the policy of localism that we are going to drive forward, local councils should be the driving force in deciding how they want their communities to develop. That is a fundamental part of the planning changes we are making.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
In terms of localism, does the Department look at any measurements? What concerns inhabitants who debate the possibilities and planning applications is that the applications are turned down and then repeated, coming back with one fewer turbine and then two fewer turbines, so they go through the process again and again, and lose all confidence in any aspiration to real localism.
Charles Hendry
That is central to predetermination and to ensuring that more of the work is done through earlier discussion between the developer and the council, so they can agree what they think might be generally desirable. We are making those changes. We also need to ensure that we have lead authorities with particular expertise in handling such applications. Many authorities have not dealt with such applications before and do not know how to handle them when they come through. Finding ways to build a genuine body of expertise within local authorities is part of the approach we are considering.
We removed regional spatial strategies and the top-down regional energy targets, because they moved us away from the localism we want. We are committed, in relation to applications for below 50 MW, to local communities and local councils deciding how their areas will develop. The new planning framework will cover all forms of development and set out national economic, environmental and social priorities. Tackling climate change and ensuring our energy security will be among our top priorities, but as I said, we want communities and individuals to own a stake in our collective low-carbon future. That is why we are looking at how local communities can benefit from business rates staying locally, and why we want more genuine community ownership of applications, so that people can see the link between hosting a facility and the benefits that it brings directly to the local area and to the services that people care about.
Charles Hendry
I am running seriously short of time, but in view of the immense seniority of my right hon. Friend, how could I say no?
Mr Davis
We welcome everything that the Minister has said so far, but sometimes local community advantage cannot overwhelm the destruction of people’s lives. They will be protected only by leaving the decision at local level and not overruling it time and again at a central appeal.
Charles Hendry
Where a case goes to appeal, it will be decided only in relation to the wider planning guidance that the Government set out. If it is felt that the guidance has not been adhered to in making a determination, it is entirely proper that there be an appeals process. In the spirit of fairness, we all believe that it is right that if an application is turned down at one level, people should continue to have a right to appeal for a redetermination. It must be done within the spirit of the rules set down, and that is absolutely key to what we are saying.
In the debate, we have heard a call for the transfer of support from wind to other renewable sources. We do not see wind as the ultimate solution on its own. It has a part to play, but we supported the banding of the renewables obligation certificates, because that started to give more support to emerging technologies, which need more help to come to fruition. The UK should lead the world in marine technologies, and the steps that we are taking elsewhere will ensure that, certainly by the 2020s and beyond, this will be the natural place in the world for people to come to develop those technologies. In the meantime, we need continuing diversity, and that includes wind. We cannot rely entirely on one low-carbon technology. We expect other low-carbon technologies to come through, particularly nuclear technology—without subsidy—which we are making progress on, as well as clean coal and coal with carbon capture. We expect the widest range of renewables possible in the framework.
Onshore wind is one of the most cost-effective and developed of all renewable technologies, and has almost zero marginal cost, because once the facilities have been constructed, the cost of the energy—the wind—comes without charge.
Charles Hendry
I hope my hon. Friend understands that many points have already been made in the debate and it is crucial that I have a chance to respond to those in the remaining few minutes.
The renewables obligation has been banded to incentivise investment in other technologies, but what is critical about the ROC is that if the wind does not blow strongly, there is not as much income, because the money received is directly related to the amount of electricity generated. It is based on payment per megawatt hour of power generated. Therefore, if a wind turbine is located where the wind does not blow much and where the turbine does not turn much, very little revenue is returned to the area. That was one of the most important aspects of taking such an approach. It is also linked to the wholesale price: if the price drops as a result of there being a huge amount of supply in the system but not a great deal of demand, the amount of money that goes back is reduced. That recognises the changes in demand and supply found more generally in the system.
We recognise, of course, that wind is intermittent. As my hon. Friend the Member for Daventry said, back-up is required, including from gas, coal or biomass. It could also be done through storage—pump storage and hydrogen or battery technologies are coming through at an impressive rate. That will start to move the technology on from working only when the wind blows to allowing electricity to be available when people need it.
However, there is another side to the argument. Sizewell B, one of our more recent nuclear power stations, has been out of operation for seven months. In that time, it did not produce a single unit of electricity, but our wind system produced 1.8 TWh of electricity, the equivalent of the annual consumption of 400,000 homes. We believe that security of supply comes from a mix of technologies. We cannot put all our eggs in one basket. Having a mix means that if there is a problem in one part, we have a better chance of keeping the lights on, and doing so affordably.
Turbines generally turn about 70% of the time. The load factor figures suggest that it is lower than that, but the turbines may be turning at a relatively low speed for 70% or 80% of the time; there are only a few hours when they are not generating. There was a period at the beginning of the year when they were contributing perhaps only 0.1% of our electricity consumption, but recent figures show that they have been producing 10%. The figures fluctuate, and they need to be seen as part of the totality of what is necessary.
In the time that remains, I shall touch on some of the other issues in the debate. On noise, my primary concern is that the issue is not being treated similarly in all parts of the country. The report that I have commissioned from Hayes McKenzie will consider how noise is to be interpreted to ensure uniformity. It does not seem right that it should be considered in one way in Northamptonshire and in another in East Yorkshire. I assure the House that in appointing Hayes McKenzie I considered who it had worked for to ensure that it can work for local authorities on one side of the equation and wind developers on the other. I want to be convinced—I have been convinced—that the company can provide genuinely independent advice.
My right hon. Friend the Member for Haltemprice and Howden (Mr Davis) spoke about the previous report. I understand that certain issues were removed before I became involved in this work, relating to things that were outside the initial scope of the report. However, I give an absolute assurance that the Hayes McKenzie report will be published in its entirety and that it will be subject to peer review, so that we can clear about what needs to be done. There is a further review on amplitude modulation by RenewableUK. That, too, will be subject to peer review. I hope that will help to complete the picture.
Other issues were raised this afternoon, and I hope to have the chance to write to my right hon. and hon. Friends to ensure that they have a complete response.