Navitus Wind Farm, Swanage
Debate between Charles Hendry and Baroness Primarolo
Charles Hendry
I want to make some further observations, but if there is a chance for my hon. Friend to make some further comments, I will be pleased let him do so.
Madam Deputy Speaker (Dawn Primarolo)
Order. Minister, may I ask you to face towards me and to speak into the microphone? We keep losing the sound when you turn around.
Charles Hendry
I willingly accept your advice, Madam Deputy Speaker. Many people are quite glad when the sound goes off while I am speaking, but I know that in such an important debate the words are all important.
My hon. Friend the Member for South Dorset raised the potential impact of offshore wind farms on the environment. That was a core part of his speech. The impacts on other sea users and the environment have to be assessed at a strategic level as part of the Department’s offshore energy strategic environmental assessment, and are assessed again at the application stage for each individual project in the environmental impact assessment. The most recent strategic environmental assessment report, which we published in 2011, concluded that at a strategic level, there were no overriding environmental considerations to prevent the achievement of up to 33 GW of offshore wind in the renewable energy zone and the English and Welsh territorial waters by 2020.
We should be in no doubt, however, that the level of ambition is linked directly to the costs involved. We are working with the industry to ensure that the costs of offshore wind can be brought down significantly. At the moment, the cost is about £140 per MWh; we need to see that brought down to £100 per MWh. The industry ambition of 18 GW by 2020 is absolutely dependent on progress being made in that direction. We understand that that has to happen in a way that works for consumers and the industry as investors. It is worth observing that, last year, there was pressure to push up bills by more than £100 because the wholesale price of gas rose by about 40%. The renewable energy element of a bill is less than £20, or less than 3%. We have to look at these issues in the round.
The most important message that I can give to my hon. Friend the Member for South Dorset is that this is one proposal, which will come forward in a formal application next year. There will be significant opportunities to ensure that people’s views are heard. I am adamant as a Minister involved in the process that local engagement with the community will be an integral part of that process.
Question put and agreed to.
National Policy Statements (Energy)
Debate between Charles Hendry and Baroness Primarolo
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I beg to move motion 1,
That this House takes note of and approves the Overarching National Policy Statement for Energy (EN-1), which was laid before this House on 23 June.
Madam Deputy Speaker
With this we shall consider the following:
Amendment (e) to motion 1, leave out from ‘of’ to end and add
‘the Overarching National Policy Statement for Energy (EN-1), which was laid before this House on 23 June, but declines to approve it until it is amended to insert in section 5.14.7 a direction to the Infrastructure Planning Commission to consider the impact on the waste hierarchy of energy-from-waste generating stations of over 50MW.’.
Motion 2—National Policy Statements (Fossil Fuel Electricity Generating Infrastructure)—
That this House takes note of and approves the National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2), which was laid before this House on 23 June.
Amendment (b) to motion 2, leave out from ‘of’ to end and add
‘the National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2), which was laid before this House on 23 June, but declines to approve it until it is amended to include energy-from-waste generating stations to the list of covered technologies in section 1.8.1.’.
Motion 3—National Policy Statements (Renewable Energy Infrastructure)—
That this House takes note of and approves the National Policy Statement for Renewable Energy Infrastructure (EN-3), which was laid before this House on 23 June.
Amendment (a) to motion 3, leave out from ‘of’ to end and add
‘the National Policy Statement for Renewable Energy Infrastructure (EN-3), which was laid before this House on 23 June, but declines to approve it until it is amended to omit energy-from-waste plants’.
Motion 4—National Policy Statements (Gas Supply Infrastructure And Gas And Oil Pipelines)—
That this House takes note of and approves the National Policy Statement for Gas Supply Infrastructure and Gas and Oil Pipelines (EN-4), which was laid before this House on 23 June.
Motion 5—National Policy Statements (Electricity Networks Infrastructure)—
That this House takes note of and approves the National Policy Statement for Electricity Networks Infrastructure (EN-5), which was laid before this House on 23 June.
Motion 6—National Policy Statements (Nuclear Power Generation)—
That this House takes note of and approves the National Policy Statement for Nuclear Power Generation (EN-6), which was laid before this House on 23 June.
Charles Hendry
This debate is intended to fulfil our commitment to parliamentary approval of the national policy statements. The motion constitutes a further important milestone in the Government’s programme to secure affordable low carbon energy which will make the UK a truly attractive market for investors in energy infrastructure.
Let me briefly explain the background to the national policy statements and the purpose of each one. I shall, of course, be happy to take interventions as I go through them. Members may find it convenient to concentrate on the subjects individually, but I am mindful of the number who wish to speak in the debate.
The national policy statements do not contain new energy policy or change the standard for consenting projects, but they set out clearly and for the first time the national policy that must be considered before the granting of consent to infrastructure projects that are examined by the Infrastructure Planning Commission and, when the Localism Bill has been enacted, by its successor. The policy statements are critical to the new fast-track planning system that will encourage developers to embark on energy projects without facing unnecessary hold-ups. It will also ensure that local people can have their say about how their communities develop, and that decisions are made in an accountable way by elected Ministers.
We urgently need new electricity-generating infrastructure to replace our ageing power stations. If we are to meet our ambitious carbon targets, we must electrify much of our industry, heating and transport sectors. That could mean doubling our electricity generation, with about 60 GW of new capacity coming on line by 2025. Over the next 10 years, a quarter of our generating capacity will close as old or more polluting plants close. As the reserve margin of spare generating capacity falls, the risk of interruptions to our energy supply rises.
More than half the new capacity that we urgently need should be met with renewable energy, and a significant proportion of the remaining capacity should be met with other low-carbon technologies. That is a real challenge. Business and industry tell us that investment in infrastructure will help them to create growth and jobs. By setting out the need for new energy infrastructure, including a mixed portfolio of electricity generation, the national policy statements will unlock that investment and provide market certainty.
As Members will know, having considered the Energy and Climate Change Committee’s report and responses to the first public consultation in 2010, we made changes to the draft national policy statements and accompanying documents. Given the nature of the changes that we made, we decided to consult on the revised draft national policy statements between October 2010 and January 2011. Alongside our public consultation was parliamentary scrutiny of the revised draft statements. That work was undertaken by the Energy and Climate Change Committee, which considered the changes from the drafts that were consulted on by the previous Administration. The Committee then published a report, setting out 18 recommendations on the revised drafts.
We intend the national policy statements to be approved if that is the will of Parliament. My right hon. Friend the Secretary of State will designate them as quickly as is reasonably practicable. It has been suggested that designation should have been delayed until after we had reviewed them in the light of the electricity market reform White Paper which was published last week, but we do not think that delay is either necessary or desirable, as the policies have been developed in parallel to ensure they are consistent.
Mike Weatherley
We have been talking about waste disposal, particularly in the nuclear industry. The statement refers to underground storage, which is unproven but technically feasible. Does the Minister agree that it is pointless going ahead with a nuclear programme unless we have somewhere to dispose of the waste?
Madam Deputy Speaker (Dawn Primarolo)
Order. Before the Minister rises to his feet, this would be a good point for me to inform the House that this debate is due to end at 9 o’clock, there have to be wind-ups at the end and 18 Members in the Chamber have already indicated that they wish to take part. There is going to be a time limit and, at the moment, it is getting shorter and shorter. So those who wish to speak might want to hold back on their interventions.
Charles Hendry
Thank you for your strictures, Madam Deputy Speaker. I will be very observant of them in considering which interventions to take.
My hon. Friend does make an important point. We are working with communities that have volunteered to take forward some of this work to see whether there are appropriate locations for a waste disposal facility, and we are committed to making this happen. We have expressed an ambition that we should have such a facility open 10 years earlier than previously planned—by 2029 rather than at the end of the 2030s. I hope that that will show to him and others our commitment in this area.
On the renewables national policy statement, we do not specify areas in which to locate wind farms, nor have we placed limits on generating capacity in each area, although, as in all cases under the Planning Act 2008, it will be open to the Infrastructure Planning Commission—or, through the Localism Bill, to Ministers—to refuse an application for consent if it considers that the adverse impacts outweigh the benefits. To complement the electricity generation national policy statements, policy statement EN-4 addresses requirements for gas and oil infrastructure and EN-5 addresses those for electricity networks. Changes in the pattern of supply and demand, and shifts in technology mean that we will need more of both those types of infrastructure in the coming decades.
Electricity transmission networks most familiarly mean overhead lines supported on pylons, and it is only that type of connection that requires Planning Act consent. Considerable concern has been expressed about the impact on landscapes of an increasing number of networks. The overarching NPS and the electricity networks NPS make it clear that developers should consider undergrounding or subsea cables for transmission networks. The electricity networks NPS also explains that although it would be preferable for grid connections to be applied for at the same time as the generating infrastructure it is associated with, there are circumstances where this may not be economically sensible. We have also stated that the Holford rules should be followed when developers are planning the routes of proposed overhead lines. That actually strengthens the policy, because before this NPS the use of the Holford rules by developers was voluntary.