(1 year, 4 months ago)
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I might come across as taking a slightly different view, but that is absolutely not why I am here. I represent a beautiful part of the world. There is not a massive amount of housing going on in my part of the world, and there is not a huge population. There is a huge amount of countryside. There is lots of farmland, and it is very productive land. Natural England—God bless it—has just taken a huge amount of farmland out of production for a site of special scientific interest. We must recognise that the land squeeze is not just about renewable energy.
I come at the issue from a different angle, in that the reform of policy allows us, as we have just heard, to get solar in the right place, deliver the right thing for our communities and address the cost of energy and the pressure on energy security. To give some context, the size of the prize, as we heard in the Chris Skidmore “Mission Zero” report on the upside opportunity of net zero, is likely to be over £1 trillion by the 2030s. That is a generational economic growth opportunity in relation to renewable energy. The downside risk, stemming from current issues in the UK planning grid and the wider investment climate, is potentially £62 billion of missed investment in the same period. That is not £62 billion-worth of solar farms all over our beautiful green and pleasant countryside. It is about having that £62 billion of investment in the right place. I will touch on that later.
The risk is crystallising in part due to the negative global headwinds that are adversely affecting the UK, such as post-covid inflation and the war in Ukraine, but also because of proposed policy decisions that have been deeply unpopular with investors—for example, the electricity generator levy and the continued issues with planning. Although the EGL was a negative indicator to the markets, more important issues pertaining to planning are holding up the connection of solar projects to the UK grid, slowing our transition to net zero and harming our ability to secure national energy security.
The situation is impacting a crucial partner in solar generation that often goes forgotten. We have referred to them today: the farmers and landowners. I have heard the comments about posh Land Rovers and very wealthy landowners; that is not the case in my neck of the woods. Farmers there are not extraordinarily rich and have not made a huge amount of money by using their land for things other than producing food. They are able to put renewable energy infrastructure, solar farms, and other stuff such as mobile connectivity, on their land in the right place where the land is not productive. That has actually helped farms to survive. We all know that if farms are not viable, they are broken up and sold off. Then we do get the very rich, Chelsea-tractor drivers coming into beautiful parts of the countryside and not looking after it. Maybe they have hobby farms or estates that do not protect the countryside.
My hon. Friend talks about small-scale connections; one of the things that is driving against small-scale connections is their price. The price is determined by the electric companies, which are driving people towards the massive scale, because that is the only way to make the connection commercially viable.
My hon. Friend is exactly right. I wanted to come to that, which is why I was hesitant about appearing to take a view different from the rest of the room. That is the thing: it is not just the suppliers that drive out the smaller-scale solar installations but the planning process. I am told that the cost of going down the NSIP route to get permission could be £10 million. If someone is going to spend that kind of money on a solar farm—I agree that the term is dreadful—I can understand why they go for a huge solar installation. The cost of that route makes the installations so concentrated and on such a scale. It would never be delivered in Cornwall.
Currently, a site is limited to, I think, 50 MW under what I would describe as the traditional route of the Town and Country Planning Act 1990, which is much healthier for local communities to engage in—it is easier for them to have their say and for the right solution to be reached. I therefore suggest that consideration be given to reforming that traditional route to allow slightly bigger sites to be used without having go down the NSIP route. I say that because land-use planning is key to everything. A lot of work is happening in the Lords and in the Government, with lots of conversations about how we plan land use for housing, transport, growing food, producing energy and caring for the natural environment, but that work must accelerate. It is the best possible tool to deliver the energy and food that we need and to enhance the natural environment, while doing it in a way that works for communities and in everyone’s interest.
May I press my hon. Friend on grid capacity? One thing that is driving the problem in my constituency is the issue that we had with grid capacity. The National Grid upgraded a substation and, therefore, for several miles around it, everything is open to applications for solar panels. That is what is driving those massive applications that destroy the countryside.
I hear that, and I do not have an answer—thankfully, I am not the Minister.
I hope not. I am arguing that there is a real danger—as happened with onshore wind, and I do not object to onshore wind in the right place—that we create a situation where these things cannot happen at all. We would then hinder the right kind of development and movement in the right direction. In Cornwall, we have the opportunity provided by the Celtic sea, with a huge amount of offshore wind, which is a much better solution. I still think, however, that grid capacity, land use and reform of planning that understands and recognises everything that has been said can stop the gold rush for something that does not deliver anything for food or our countryside, so we can enjoy our green and pleasant land as we should. We must not cut off our nose to spite our face when it comes to delivering energy as close to home as possible to meet our constituents’ needs. That is what I am getting at, and local community networks are an important part of this debate.