Charles Hendry
Main Page: Charles Hendry (Conservative - Wealden)(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Philip Hollobone (Kettering) (Con)
3. What estimate he has made of the level of (a) onshore and (b) offshore wind generating capacity in 2020.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Modelling undertaken for the Department in 2009 suggested that the UK could have about 14 GW of onshore wind and 13 GW of offshore wind generating capacity in 2020.
The Government do not set targets for individual technologies; we take a market-based approach to energy generation. The actual amount of capacity that comes forward, and the timing, will depend on a range of factors, including how the market responds to the incentives that we have put in place.
Mr Hollobone
My constituency has at Burton Latimer a successful wind farm that is soon to expand, but my constituents would like to see greater incentives from the coalition Government to encourage offshore wind energy, and rather reduced incentives for onshore wind farms, because we do not want the English countryside despoiled by hundreds of wind farms all over the place.
Charles Hendry
My hon. Friend makes an important point, with which a significant number of colleagues in the House agree. There was a democratic deficit in the way the policy was driven forward in the past, and we want to move on from the hectoring approach that the previous Administration took. There do need to be appropriate incentives; wind farms should be put in place in the appropriate locations; and a banding review of the ROC—renewables obligation certificate—regime is coming forward this year, when we can look at those issues.
Hywel Williams (Arfon) (PC)
Ports are a reserved matter. How are the Government enabling Welsh ports to participate in the offshore industry, and to what extent and in what way are they working with the Welsh Assembly Government?
Charles Hendry
We took a view that the best way for the funding to go forward was through an economic generation programme linked specifically to manufacturing projects, meaning that it ceased to be a ports programme and became an economic development matter. Funding was allocated through the Barnett formula to the Welsh Assembly Government for them to take forward their own programmes in the area, and we have also asked the Crown Estate to work with ports throughout the United Kingdom to see how they can all benefit from the renaissance.
Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
Given the huge obvious potential in the sector, the Minister will understand the renewable energy sector’s natural impatience to know how the green investment bank is progressing and whether the Department is receiving the necessary support that it looks for from the Treasury. Given that potential, can he update us on how things are progressing towards May? Big sites, such as Nigg and Kishorn in my constituency, are really looking to the Government for a lead.
Charles Hendry
My right hon. Friend picks up on an issue that is of great interest across the House. We are making good progress on the discussions about a green investment bank, and an announcement will be made shortly. We see this as a fundamental building block for bringing new investment into an area which is a massive driver for economic growth and recovery in this country.
Huw Irranca-Davies (Ogmore) (Lab)
The Government have very warm intentions for community engagement through the Localism Bill, although The Daily Telegraph has today rather cruelly portrayed it as “bribes for windfarms”. Mike Landy, who is very well respected and has 25 years of experience of renewables internationally, says:
“It is hard to see how the UK’s target of 15% renewable energy by 2020 can be achieved without a significant contribution from onshore wind. The localism bill has all the makings of a NIMBY Charter...there is a distinct danger we could be heading towards BANANA—Build Absolutely Nothing Anywhere Near Anything”.
So I have a straightforward question: what will be the average time taken for an onshore wind farm application by the end of this Government?
Charles Hendry
We are determined to stop the top-down approach that was taken by the previous Administration. We believe it is imperative that local communities should have an active engagement in the siting of big facilities in their communities, and the changes we are making will give them greater discretion. We will stop the regional spatial targets and strategies, but put in place significant benefits so that communities can see how they benefit from hosting a facility on behalf of the national interest instead of seeing it as something that is imposed on them, as at present.
John Pugh (Southport) (LD)
4. What assessment he has made of the potential role of liquefied petroleum gas in reducing carbon emissions.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
In the heating sector, the carbon emissions associated with LPG are slightly higher than those for natural gas. It does, however, have the potential to reduce carbon emissions for those not on the gas grid, as it has a smaller carbon footprint than alternatives such as heating oil and electric heating, though higher than that of renewable energy technologies such as efficient ground-source heating pumps.
Mary Macleod (Brentford and Isleworth) (Con)
9. What assessment he has made of the potential effects of his proposed electricity market reforms on the ability of the UK to attract investment in low-carbon generation.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
We estimate that by 2020, the cumulative investment needed in electricity generation, transmission and distribution will be in excess of £100 billion. We believe that the policies set out in our consultation on electricity market reform will deliver this investment and the further investment needed to meet our longer-term targets, making the UK a prime location for low-carbon energy development.
Mary Macleod
I am delighted that the Department of Energy and Climate Change and the Treasury have joined forces to launch the electricity market reform project. How will those proposals build the necessary confidence to invest in low-carbon options over the long term and manage the transition period to ensure that stability is maintained?
Charles Hendry
My hon. Friend is absolutely right to pick up one crucial element of our reforms. We must remove uncertainty, because that is one of the biggest threats to investment. We therefore propose that the current regime run alongside the new regime for a period of years, giving people a choice of which system they work to. We believe that that deals with the transitional challenges.
Ian Lucas (Wrexham) (Lab)
Low-carbon generation was hugely incentivised by Labour’s feed-in tariff, which in the last month provided 300 new jobs in my constituency. Those jobs are endangered by Monday’s announcement. Sharp says that the Government’s investment will stop investors—private investment—in their tracks. How can the Government possibly justify their absurd claim to be in favour of growth and green manufacturing when they make an announcement as stupid as the one they made on Monday?
Charles Hendry
I remember well the debates on the introduction of feed-in tariffs. It was the force of Conservative, Liberal Democrat and Labour votes—[Interruption]—Labour Back-Bench votes. That was the combination that forced the then Labour Government to accept feed-in tariffs. This Government are ensuring that that money can be targeted on areas where we can see a massive roll-out. It should not be diverted into big solar farms. We want to ensure that the maximum number of people can benefit, which is why we are undertaking our review.
Jason McCartney (Colne Valley) (Con)
10. What recent assessment he has made of the effectiveness of the feed-in tariff payments system for electricity generated by domestic solar panels.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
15. What the net contribution of wind-powered electricity generation to energy supply was in the final quarter of 2010.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
The Department publishes data on electricity supplied to the UK electricity grid on a monthly basis. Figures for the final quarter of 2010 in full will be published on 24 February. DECC’s latest figures show that for October and November 2010 in total, wind generation by major power producers contributed 3.5% of all electricity supplied to the UK electricity grid.
Chi Onwurah
On Monday I visited Siemens in Byker, just outside my constituency, to see the significant investment it is making to train apprentices in renewable technologies. However, Siemens told me that it would not take on more apprentices until there were more confirmed renewable power projects. The Secretary of State has delayed the green investment bank and the renewable heat incentive and is reviewing the feed-in tariff. When will he give the renewable industry the positive signal it requires?
Charles Hendry
The renewable heat incentive is not actually related to the offshore wind development sector, in which Siemens is looking to operate. We are working closely with Siemens. Yesterday I chaired the offshore wind developers forum to consider the barriers to potential investment. We see this as a massive opportunity for Britain to secure the sort of green jobs that the hon. Lady is talking about in her constituency, and which Siemens is looking at more generally in areas such as Humberside.
Andrew George (St Ives) (LD)
In order to encourage greater wind generation, what assistance can Ministers offer to communities that live very close to large wind farms or turbines? How can they share the benefits of having those on their doorstep?
Charles Hendry
Our evidence shows that community schemes—where there is community ownership of the scheme—get through the planning process much more readily than non-community schemes. As we move forward, we are keen to see schemes that will keep the local business rate within the local community and provide additional benefits through community ownership, so that communities can see exactly what they are getting out of having such a facility in their areas, rather than, as sometimes happens, getting the pain but not the gain.
Elizabeth Truss (South West Norfolk) (Con)
16. What steps he is taking to ensure that electricity consumers in areas with only one supplier are not charged excessive amounts.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Ofgem regulates distribution network operators through price controls that limit the amount that they can charge for connection services. For most connection services, DNOs can recover only expenses that are reasonably incurred. When a customer disputes a connection charge, they can raise the issue with the DNO through its complaints procedure. Ofgem has powers to determine whether a connection charge is reasonable after other avenues are exhausted.
Elizabeth Truss
My constituent David Goulty has been quoted £1,200 for a connection by UK Power Networks. Also, the Snetterton industrial site near the A11 has been quoted £6 million to £8 million for connecting it to the national grid. I am concerned that this company is the sole supplier in this area, and I would like to know what action the Government and Ofgem are taking to ensure that it is not charging over the odds for connections.
Charles Hendry
My hon. Friend raises a very important point, which I hope she will pursue through Ofgem as well. The costs of those mechanisms are calculated by the local area network using a methodology agreed by Ofgem, which means that it can recover only reasonable costs associated with the connection work. If the complaints procedure has been exhausted, Ofgem can then determine whether the costs are reasonable. Consumers can also consider using an independent connection provider that might be able to offer a better deal.
Mr William Bain (Glasgow North East) (Lab)
17. What recent discussions he has had with energy companies on tariff and pricing policies affecting consumers.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Ministers and officials in the Department of Energy and Climate Change meet Ofgem and suppliers on a regular basis to discuss market issues. Ofgem monitors the market closely and reports quarterly on retail prices. Its latest report shows large increases in estimated supplier margins for the year ahead, largely owing to recent price increases. We are disappointed on behalf of consumers by this development, and welcome the announcement of Ofgem’s review of the retail market.
Mr Bain
The Minister will be aware from a written answer to me on 10 January that without further Government action, by 2013 the impact of the Government’s proposed electricity market reforms will be felt by the poorest 10% of households three times more heavily than by the richest 10%. Will he therefore adopt Save the Children’s excellent idea of obliging the energy companies to offer a compulsory rebate to the poorest families?
Charles Hendry
We have indeed introduced a new obligation for energy companies to help the most disadvantaged people. We are determined to take forward that agenda, and to ensure that we do it rather more effectively than it has been done in the past. We also have to ensure that we secure the investment necessary to rebuild our energy infrastructure, which was badly put off under the previous Administration.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
19. What recent steps he is taking to improve the energy efficiency of privately rented housing in rural areas.
Ian Lavery (Wansbeck) (Lab)
The Secretary of State will be aware that the Hatfield colliery in South Yorkshire is in administration. It has more than 100 million tonnes of coal. Has he had meetings with the owners or their representatives to try to resolve the situation, and will he agree to meet me and other representatives to discuss it?
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
We had regular contact with the owners prior to the administration. We have not had direct face-to-face contact with them subsequently, because we believe that this is a matter for them to sort out with the administrators. However, we recognise the great potential of that location and of the technology that is being developed there for carbon capture and storage, and as we take forward our plans for CCS, we hope that the plant will still be able to bid into the process.
Robert Halfon (Harlow) (Con)
T5. Is the Minister aware of ECCO, a not-for-profit co-operative in Harlow that recycles textiles and batteries? Will he visit ECCO with me to see this important example of the big society, and to see whether such a contribution to recycling could be rolled out across the country?
Stephen Mosley (City of Chester) (Con)
T6. Has my hon. Friend had any discussions on the future of the treaty of Almelo, particularly in relation to modifying it to allow British and European companies to take full advantage of the opportunities offered by China’s expanding programme of civil nuclear power?
Charles Hendry
May I begin by paying tribute to the important work that URENCO, which is based on the outskirts of my hon. Friend’s constituency, does in this area? The treaty of Almelo was signed in 1970 by the Governments of the UK, the Netherlands and Germany, and covers the operation of the tripartite URENCO uranium enrichment company. It is not a vehicle for the promotion of specific commercial opportunities, and if there were to be any change in its nature there would have to be a new treaty, or an adaptation to the existing one.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
The north-east of England has a burgeoning offshore wind sector, supported by the new renewable energy centre in Blyth. What is the Department offering to support the growth of that industry now that the very successful regional development agency, One North East, which provided a lot of vital support, is being wound down?
Charles Hendry
As the hon. Lady will know, the £60 million for the building of the manufacturing facility on the ports could be of massive benefit to the north-east and to other parts of the country. Companies such as Gamesa, Siemens, Mitsubishi and General Electric are already looking at the United Kingdom because of the massive opportunities that they see here. We are determined to have the jobs coming to this country, whereas historically too many of them have gone overseas.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
How does the Secretary of State intend to help the chemical and steel industries and other manufacturers of energy-intensive products, which will be less able to compete globally or even within the EU in response to his proposals for electricity market reforms and CO2 floor prices?
Charles Hendry
The hon. Gentleman raises an extremely important issue. We have to be careful not to have carbon leakage and to ensure that the measures put in place in this country do not drive British manufacturing jobs abroad. That is why there is cross-co-ordination between DECC, the Department for Business, Innovation and Skills and the Treasury to make sure that we fully understand any knock-on implications and avoid any such unintended consequences: it is critical to keep those manufacturing jobs in Britain.
Duncan Hames (Chippenham) (LD)
We have heard how households such as those off the gas grid, of which there are many in my constituency, would benefit from the new green deal. If demand for it initially outstrips supply, how will the Secretary of State determine who should have access to it first?
Charles Hendry
We want a different relationship between Government and the offshore developers. We are considering restructuring PILOT, the organisation that deals with such matters. One of the most important aspects of its work will be access to infrastructure, alongside decommissioning and other issues that have been intractable for a long time. I am grateful for the work that the all-party group is doing in the House.
Sarah Newton (Truro and Falmouth) (Con)
I welcome the Minister’s recent meetings with private sector organisations in Cornwall that are working on deep geothermal and marine energy. Can the Secretary of State confirm that both those exciting technologies will be included in the review of the banding regime for renewables obligation certificates?
Albert Owen (Ynys Môn) (Lab)
Much of the new low-carbon capacity plan will require either enhanced or new transmission lines. Will the Department encourage National Grid to consider installing underground and submarine cables as well as enhancing existing pylons?
Charles Hendry
The hon. Gentleman has raised a particularly important issue, which I know is of great significance to his constituency because of the possible building of a nuclear plant there. I am pleased about the work being done by the Institution of Engineering and Technology, which is trying to establish in detail what the costs of undergrounding will be. Additional work is being done by National Grid to ensure that we fully understand the relative costs of the various approaches, which will be one of the most contentious issues.
Naomi Long (Belfast East) (Alliance)
The Minister will be aware that the development and expansion of wind and wave technology are having a very positive impact on research and development and manufacturing in my constituency. What discussions is he having with his counterparts in the Northern Ireland Assembly to ensure that the economic as well as the environmental benefit is harnessed?
Charles Hendry
The hon. Lady will be pleased to know that we have regular contacts with members of the Northern Ireland Government, as well as with devolved Governments elsewhere in the United Kingdom. We are keen to adopt an all-islands approach. We intend to assess the potential throughout the British Isles, including the channel islands and the Irish Republic, to establish where the resources are greatest and how they can be harnessed for the greatest overall good.