Oral Answers to Questions
Debate between Charles Hendry and Philip Hollobone
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Offshore wind is currently supported under the renewables obligation, and we have brought forward the banding review to determine future support to realise the full potential of this vital sector. Through electricity market reform, we are working on more enduring support for low-carbon electricity generation and we will publish a White Paper before the summer recess. I chair the Offshore Wind Developers Forum, which is working to identify barriers that need to be addressed.
Mr Hollobone
According to the Government’s figures, by 2020 they expect there to be 14 GW of onshore wind capacity and 13 GW of offshore wind capacity. My constituents and, I suspect, many Members in this House would like there to be far more wind turbines offshore than onshore, because it is windier offshore and offshore wind turbines do not despoil the British countryside.
Charles Hendry
My hon. Friend has picked up on one of the five or six scenarios that we put forward on how we can meet our 2050 targets. I understand his concerns, but we also have to take account of cost. Offshore wind costs about twice as much as onshore wind. We need to be aware of the interests of consumers, who have to pay the bills.
Oral Answers to Questions
Debate between Charles Hendry and Philip Hollobone(13 years, 2 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.
Oral Answers to Questions
Debate between Charles Hendry and Philip Hollobone(13 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Philip Hollobone (Kettering) (Con)
7. Whether he plans to amend the safety regime for offshore oil drilling following the publication of the analysis of the causes of the oil spill in the gulf of Mexico.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I am delighted to take part in the Greg Barker show, Mr Speaker.
Although DECC regulates environmental aspects of the oil and gas sector, the Health and Safety Executive is responsible for safety. We have taken further steps to strengthen our regulatory regime by doubling the number of environmental inspections, and we are satisfied that the regime is one of the most robust in the world. We have been looking closely at information from the Macondo incident and will continue to do so. When those investigations are complete, we will determine what more, if anything, needs to be done to reinforce our regulatory approach.
Mr Hollobone
My constituents in Kettering would like to know whether an incident such as happened in the gulf of Mexico could happen on the UK continental shelf, and if so, what the Government would be able to do about it.
Charles Hendry
One of the most immediate actions taken was to ensure that we have capping and containment devices—two containment devices that could deal very quickly with such an emergency are now based in the UK. We are also working with the industry on capping devices that would provide early, permanent solutions.
Coal-burning Power Stations
Debate between Charles Hendry and Philip Hollobone(13 years, 6 months ago)
Westminster HallRead Full debate Read Hansard Text
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The Minister of State, Department of Energy and Climate Change (Charles Hendry)
It is a continuing pleasure to serve under your chairmanship this afternoon, Mr Bayley, in the second of our two energy debates. It is a bit like a lotto double rollover, with many colleagues having the chance to speak about the wide range of energy issues that face us. A common theme runs through the debates, which is the need to decarbonise our electricity supply system, both in the roll-out of renewables and how we decarbonise the mass generation facilities that we have in this country.
Undoubtedly, coal is one of the most important elements within our energy supply system. In general, it produces about a quarter of our electricity. When I visited National Grid a couple of years ago, I found that more than half the electricity being generated was coming from coal plants. There is no doubting the significance of the contribution that coal makes to our energy security. Nevertheless, we must still recognise that coal is much the most polluting form of electricity generation. For example, a coal-fired plant produces about twice as much carbon dioxide per unit of output compared to a gas-fired power station.
Looking forward, I think that it is not a question of whether it is coal, gas, nuclear or renewables that we use; to ensure our energy security, we need to have some of all of those. But nuclear will take 10 years to build, coal with carbon capture is 10 years away as a commercially viable facility and some of the massive roll-out of marine technologies is also 10 years away. In the meantime, therefore, we will certainly need to have more gas in the system and that is why we are also taking urgent action to guarantee that we have the supplies necessary at a time when we are becoming more dependent on imports.
I congratulate my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) on securing this debate and on his customary enthusiasm for everything that goes on in his constituency. In his excellent introduction he identified the key issue—the large combustion plant directive. That directive will require about one third of our coal plant to close down if it has not been fitted with flue gas desulphurisation, or FGD, facilities.
My hon. Friend the Member for Selby and Ainsty (Nigel Adams) will have seen at Drax the scale of the investment necessary for a FGD unit to be attached to a power station. Such a unit covers essentially the same ground area as the original coal-fired power station itself and it costs hundreds of millions of pounds to build. Consequently the companies involved have taken very careful decisions about whether the long-term potential of that plant justifies that investment. However, this is a matter for those companies and at the end of their deliberations they will decide whether they can give that type of plant a new life or whether they will simply have to allow it to use its remaining operating hours and close before 2016.
Mr Philip Hollobone (Kettering) (Con)
My hon. Friend refers to the large combustion plant directive. I believe that the capacity crunch will come in around 2017. Is he confident that Her Majesty’s Government will not need to seek a derogation from that directive in order to keep the lights on?
Charles Hendry
The evidence that we have is that the crunch, which had looked as if it was coming in around 2017, is now further out. The recession has reduced demand for power by 6% or 7% and demand has not come back up to the levels that it had been at before the recession. So, there is a crunch coming but it will now come towards the end of this decade.
However, that does not mean that we are off the hook, because following the LCPD is the industrial emissions directive, which will deal predominantly with emissions not related to CO2 . That directive will close down much of our remaining coal plant if the measures are not taken to ensure that our plant complies with it.
We have a mountain to climb and it is right that we should look at the range of options available to us, so that we can ensure that we have the generating capacity that will be so central in the future.
My hon. Friend the Member for Shrewsbury and Atcham also raised the issue of biomass. I am well aware of a company that is looking to convert the Ironbridge power station to a biomass facility. I am due to come to Shrewsbury in early December. It may be that I can meet representatives of the company then, or I can meet them in London if that is more convenient. I am very keen to learn more about their plans and to learn about how the use of biomass can provide continuity of output, production and employment at the Ironbridge facility.
We see biomass as having a very significant role to play in the energy sector. It can enhance our security of energy supply, because much of the biomass can come from our own indigenous resources. However, we know that sometimes the biomass comes from other parts of the world and we must be certain that the sources of biomass are indeed sustainable. Biomass is also dispatchable; in other words, it can reflect and respond to the peaks in demand. So, if there is a need for back-up capacity, a biomass plant can ensure that we have the continuing output that will be necessary, just as a coal plant can.
Without doubt, large scale dedicated biomass plants can deliver significant levels of renewable electricity by 2020. The renewable energy strategy, which was published by the previous Government in July 2009, estimated that electricity from biomass, including biogas and wastes, would comprise about 20% of all the renewable power generation that will be needed to meet the renewable energy targets that we as a country face.
We also recognise that electricity from dedicated biomass is cheaper than some other large-scale electricity sources. If the biomass generation needed to meet the renewable energy target were displaced by more expensive technologies, there would of course be an additional cost to consumers and, in all the discussion of these issues, that is a factor that we should rightly bear in mind, as my hon. Friend the Member for Shrewsbury and Atcham also reminded us.
Moreover, in comparison with some other large scale renewables, biomass can generate more long-term jobs relative to the megawatt-hours of energy output. That is due to the ongoing need for biomass feedstocks creating business and employment opportunities across the UK supply chain.
Use of biomass also provides an opportunity to enhance the forestry husbandry that we have in the UK. I believe that about 40% of our forests and woodlands are not under active management. So there is extraordinary potential and a massive national resource there, not only in terms of biodiversity but providing a renewable energy fuel that can make a major difference in this sector.
The Government support the generation of biomass electricity through renewable obligation certificates, or ROCs, which are tradeable certificates under the renewables obligation. In July, we announced that the support for dedicated biomass electricity plants under the ROCs would be “grandfathered”. That means that for 20 years the price that they would receive would be guaranteed, up to the 2037 end date of the obligation. I think that that will provide the certainty that investors are looking for.
However, we also recognise that we are receiving more inquiries from generators about the potential of switching to biomass and we acknowledge that we simply do not have enough understanding of the potential of that switch and what it can contribute. So we have called for evidence as part of our consultation on the ongoing work of the renewables obligation. That consultation will close on 19 October and we want everybody who has an interest in this issue to respond—I certainly hope that E.ON will contribute—so that we can understand the full range of interests and ensure that we can put a system in place that will encourage us to go forward.
Oral Answers to Questions
Debate between Charles Hendry and Philip Hollobone(13 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Philip Hollobone (Kettering) (Con)
15. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
I am delighted that there is so much recognition of the need to address our energy security. The Government have moved quickly to enhance our security of energy supply. We are developing a further package of measures to improve gas security. In the autumn we will be launching the most far-reaching reforms of the electricity market, which will look at the measures needed to secure investment in new capacity, and in July we introduced a new long-term regime for new grid connections.
Charles Hendry
My hon. Friend raises an issue that is extremely important not just for Yorkshire, but for the country as a whole. We have already had significant discussions with representatives of the Yorkshire business and energy communities, and we salute the work that they are doing to identify strategic infrastructure, particularly in respect of enhanced large pipelines, which enables us to take a cluster approach. That is absolutely one of the areas that we will be looking at carefully for that type of development.
Mr Hollobone
In recent years, for the first time in our nation’s history, we have become dependent on foreign fuel imports to generate enough electricity for our country. Will the Minister consider changing the capacity payment component of the electricity price to incentivise the use of indigenous fuels in power generation?
Charles Hendry
My hon. Friend has a great knowledge of these issues. We are looking at those sorts of solutions to the problems and challenges that we face. It is critical that we find long-term, robust approaches, but in that respect, it is also important to have a mix of energy solutions within the portfolio. Fuels from our own natural resources can contribute to, and greatly enhance, our energy security.
Oral Answers to Questions
Debate between Charles Hendry and Philip Hollobone
Charles Hendry
I had an initial discussion with the First Minister last week, and we are determined to work closely through the respect agenda to ensure that the taking forward of devolved issues is fully within the Scottish Government’s remit. We want clean coal to play an active part in our energy policy, but it must be genuinely clean coal.
Mr Philip Hollobone (Kettering) (Con)
11. If he will bring forward proposals to increase the surplus of projected electricity generation over demand after 2015.