Offshore Wind Developments

Debate between Christopher Chope and Eilidh Whiteford

Tuesday 6th January 2015 Westminster Hall

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

Happy new year to you, Mr Gray. I am pleased to have the opportunity to contribute to the debate. I am also grateful to the Backbench Business Committee for giving us time this morning to debate offshore renewables.

Like other hon. Members, I have a strong constituency interest in the development of offshore wind energy, in that one of the projects bidding for support in the first allocation round of contract for difference is based in the Moray firth, off the northern coast of Banffshire. Several of the ports along the Moray firth could benefit from the development of offshore renewables, with significant potential spin-offs for a wider supply chain bringing much-needed economic development to the area. I am sure other coastal communities also have the potential to benefit from such economic diversification, which is key to the future prosperity of such communities. In the north-east, there is also an understanding that the skills utilised in the offshore oil and gas sector are eminently transferrable to the offshore renewables industry, as well as a sense that we should grasp the opportunities to develop new and innovative technologies on our doorstep by building on our existing strengths.

Today’s debate takes place in the context of energy market reform. We should always remember that that is not only about keeping the lights on, bringing consumer prices under control and repairing a broken system, but about climate change and the need to reduce our greenhouse gas emissions and to mitigate, or adapt to, the effects of climate change that are already manifest.

I read recently that 2014 was the hottest year on record. We do not always notice that in Banff and Buchan, which is pretty cold, but we undoubtedly see the impact of a slightly warmer, slightly wetter climate and the effect of changing sea temperatures on our marine environment, with coastal erosion and increased landslips. And who could fail to notice the problems associated with increased flooding right across the UK? If we abdicate our responsibility to reduce emissions or pretend we can ignore climate change indefinitely—or at least for another decade or two—we are burying our heads in the sand. Environmental campaigners are fond of pointing out that the climate does not negotiate, and they are not wrong.

That is primarily why we need cleaner energy. However, we are also in the fortunate position of being able to take economic advantage of the opportunities renewable energy presents. Being in the vanguard of new technologies has the potentia1 to strengthen our manufacturing, our exports and our research base.

[Mr Chope]

The hon. Lady’s argument is surely an argument in favour of investing in adaptations to ensure that the impact of climate change is not felt so severely—for example, on the coast. If we have coastal defences, we can defend ourselves better against the consequences of climate change.

[Dr Whiteford]

The hon. Gentleman’s views on these issues are well articulated and well known, but we have to be a lot more ambitious. I do not want be shoring up our coastline—I would rather be preventing it from falling down in the first place. One way we can do that, and gain economic advantage, is by developing new, innovative technologies, which will have tremendous commercial potential if we develop them properly.

In that light, I am deeply disappointed that no decarbonisation target has been set for 2030. That is a real missed opportunity, and it undermines confidence in the Government’s commitment to the offshore renewables sector. The Government initially seemed much more ambitious about the development of offshore wind, and that raised a lot of expectations, leading to considerable investment from industry. Companies were actively encouraged to make bids for offshore developments, and they have invested hundreds of millions of pounds in bringing projects to consent.

However, the smoke signals from the Government have changed, and the goalposts have shifted somewhat since Ministers embarked on this journey. The budget announced last October for contract for difference bids was substantially lower than expected. The £235 million allocated for group 2 will support an estimated 700 to 800 MW of offshore wind capacity, which is a lot less even than some of the individual projects aim to generate.

I am not questioning the principle of a competitive element to the process, but the money available will, realistically, support only one—and possibly only part of one—of the seven projects in the frame. Given that companies will each have invested tens of millions of pounds just to get to this stage, the support on offer simply does not present sufficient incentives or prospects of success to encourage further development in the sector. I fear that the prospect of offshore wind on the Scottish coast is in real danger of withering on the vine.

It is important to point out that, under contract for difference, offshore projects will compete against not just each other, but other renewables projects, including more evolved technologies, such as onshore wind on the islands, which are now much cheaper and lower risk. Again, that is likely to jeopardise the development of a strong domestic renewables sector and supply chain.

I am concerned that the shifting goalposts, the mixed signals and the interminable delays that have characterised energy market reform are doing the UK considerable reputational damage in international markets, which will deter future investment. Those who feel they may have been led up the garden path this time will be reluctant to venture into our orbit again, which is not where we need to be in attracting investment. The Government need to send a signal that they remain committed to the offshore wind sector—if they are—and to let the sector know that there will be future allocations under contract for difference to make further investment viable.

Daylight Saving Bill

Debate between Christopher Chope and Eilidh Whiteford

Friday 20th January 2012 Commons Chamber

[Mr Chope]

As a former Transport Minister, far be it from me to criticise the Department for Transport. I have to say, though, that most of the alleged benefits—by which I mean the reduction in the numbers of road casualties—would occur in Scotland, but given that road safety is, as I understand it, a devolved matter, if the Scottish Parliament wishes to take action to improve road safety, including by doing something along the lines suggested in the Bill, surely it must be a matter for the Scottish Parliament. I am conscious that on Second Reading mention was made of the fact that during the last experiment in the north of Scotland, notwithstanding changes being made to drink-driving laws and so on, the number of road casualties actually increased.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

One of the most significant factors is that over the past year the number of road accidents in Scotland has fallen. Had we passed the Bill on its First Reading, we might have misattributed that reduction to the effects of daylight. In actual fact, however, road accidents have far less to do with the amount of daylight than with other factors, such as how people drive and the weather conditions, for example. I urge caution over some of that evidence.

[Mr Chope]

The hon. Lady’s words are very wise. My experience as road safety Minister in the Department for Transport leads me to believe that we must be careful not to draw the wrong conclusions from experiments. My view is that a stronger law on drug-driving would have a significant impact on road safety in our country. But that is not a debate for this morning.