Oral Answers to Questions
Debate between Charles Hendry and Andrew Bridgen
Charles Hendry
I would be delighted to meet the students the hon. Lady mentions because the skills in our universities form a very important part of the UK’s ambition to lead in this technology. We have made it clear up front that there is public funding for projects, with capital up front, and real progress was announced yesterday.
Andrew Bridgen (North West Leicestershire) (Con)
Does my hon. Friend agree that, in contrast to the Opposition’s array of red tape on funding, the coalition Government need to ensure that the funding for large, important projects such as CCS is as simple and straightforward as possible?
Charles Hendry
My hon. Friend is absolutely right, which is why the Chancellor made his announcement yesterday. This is a simpler way of getting the funding in; it provides the funding up front rather than it being based on output, and it is a significant step forward.
Oral Answers to Questions
Debate between Charles Hendry and Andrew Bridgen(13 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text
Charles Hendry
I thank the hon. Gentleman for the assiduity with which he advocates the interests of the Humber region and the role it can play in that regard. I was pleased to meet him and some of my hon. Friends and people representing the South Humber gateway last week to enable me to understand the case they are putting forward in that respect. We are delighted that such companies as Siemens, GE and Mitsubishi have committed themselves to major multi-million pound investments in the offshore wind sector, and we understand that some of those announcements are due to be forthcoming early in the new year.
Andrew Bridgen (North West Leicestershire) (Con)
16. What assessment he has made of the effects on the electricity grid of the weather of November and December 2010.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Demand for electricity has been met in full by the normal functioning of the market during this cold period, when electricity demand has been approximately 5% to 10% higher than the seasonal norm. As is usual at this time of year, there have been a few localised disruptions. However, network operators have worked hard to ensure that those consumers affected were restored as soon as possible. We will continue to work with industry to monitor the situation over the rest of the winter.
Andrew Bridgen
I thank the Minister for that reassuring answer, but could he outline to the House what steps he and his Department are taking to ensure that there is sufficient capacity and supply in the system to cope with the predicted energy gap?
Charles Hendry
We are not anticipating an energy gap over this winter in electricity generation. I was at National Grid last week, and we are in daily contact. We are looking at the margins of supply, which remain robust. We are looking at the import capacity for gas. We are looking at the role that all those technologies can play. During these very cold periods, all the energy companies understand the need to keep their plant ready to generate, to ensure that demand can be met by supply.
Onshore Wind Turbines
Debate between Charles Hendry and Andrew Bridgen(13 years, 6 months ago)
Westminster HallRead Full debate Read Hansard Text
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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.
Oral Answers to Questions
Debate between Charles Hendry and Andrew Bridgen(13 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew Bridgen (North West Leicestershire) (Con)
7. Whether historical wind measurements are taken into account in determining subsidy allocation for onshore wind farms.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Onshore wind farms can claim one renewables obligation certificate for each megawatt-hour of electricity actually generated, which focuses investment in those areas where the wind resource is strongest. It is therefore in the developers’ direct interest to study very carefully the historical wind measurements.
Andrew Bridgen
As my hon. Friend is no doubt aware, Leicestershire is one of the most inland and least windy counties in England. Will he please assure me that subsidies for wind farms will only be allocated in areas that can demonstrate that the amount of wind is sustainable and economically viable?
Charles Hendry
I can absolutely assure my hon. Friend that the way the ROC system works ensures that the greatest incentive is there to develop wind projects where the wind resource is strongest. We are absolutely committed, too, to the principle of localism for those below 50 MW and for local communities to be directly involved in these decisions and to receive a more direct benefit than was the case under the previous Government.