Onshore Wind Energy

Huw Irranca-Davies Excerpts

Thursday 10th February 2011 Westminster Hall

[Andrea Leadsom (South Northamptonshire) (Con)]

It is a pleasure to see you in the Chair, Mr Walker. I thank the Backbench Business Committee for enabling me to introduce this very important debate about onshore wind farms.

First, I congratulate the Front-Bench team on their part in bringing the Localism Bill to Parliament. It is absolutely key that we in Britain reverse the tide of centralisation and start to give power back to communities and people. I applaud the intention to remove regional spatial strategies and to abolish regional renewables targets. Putting power back into the hands of local communities and better allowing people to determine the outcomes for their area is certainly something that we need to do, so I thank the Front-Bench team for that.

The debate about onshore wind farms goes to the heart of the question of localism versus the national interest. Where onshore wind farms are concerned, a big tug-of-war is going on. There are real issues of national interest that must be taken into account. I shall mention three, the first of which is the energy gap. Although this is not a party political debate, Labour’s leaving of our economy in such a shambles is one of the legacies that we are fighting. The other is the way that it left our energy situation. The sad fact is that between now and 2020, some 35% of British power generating capability through nuclear and conventional power stations will be retired due to old age.

[Huw Irranca-Davies (Ogmore) (Lab)]

I welcome the debate initiated by the hon. Lady. It is a good opportunity. I also welcome her saying that it is not party political, but will she note that in the middle of the economic recession that we had and the difficulties that we had, and still have, the wind sector grew by thousands and thousands of jobs? It was not coincidental that that growth began from 2007-08 onwards. Is that not a good story about green jobs started under the Labour Administration?

[Andrea Leadsom]

As I plan to say, wind energy plays a part, but what we actually needed to do was to rebuild conventional power sources, and start building new ones, that will genuinely meet the needs of the country in the next decades.

--- Later in debate ---

[Huw Irranca-Davies]

I thank the hon. Lady for giving way again in this good-humoured debate. May I point out that the comments of the hon. Member for North Wiltshire (Mr Gray) are a complete fallacy? In the constituency of my hon. Friend the Member for Workington (Tony Cunningham) and in many places in Wales, including in the uplands of south Wales, more than 60% of the land is within the TAN8—technical advice note 8—area for development. It is not true to say that wind farms are to be found predominantly in Conservative or Liberal Democrat areas. That is not how the mapping is done.

[Andrea Leadsom]

I thank the hon. Gentleman, but the fact remains that not many Opposition Members are present in the Chamber.

--- Later in debate ---

[Andrea Leadsom]

My right hon. Friend makes a good point. I agree that the issue of the local need versus the national interest still applies. Let us start from the basis that we build wind farms where it is windy and not where it is not windy.

[Huw Irranca-Davies]

On a point of order, Mr Walker. The hon. Lady intrigues me. It is a very good debate and she has put some powerful points. However, has there been some policy announcement today? From what she has said, it sounds as though it may be beneficial. Are we hearing here and now a policy announcement?

[Mr Charles Walker (in the Chair)]

That is not a point of order. In his summing up, the Minister might want to refer to the letter that he sent to the hon. Lady, but it might just be a personal letter that we all receive from Ministers.

--- Later in debate ---

[Philip Davies (Shipley) (Con)]

It is a pleasure to serve under your chairmanship, Mr Walker. I apologise to you and to the Minister in advance, because I may not be able to stay for the whole debate. I congratulate my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) not only on securing the debate, but on her fantastic speech. I hope that, if nothing else, this debate will show the Minister the strength of feeling on the issue.

I, too, approach the issue from a local interest, namely the proposed development of a wind farm in the village of Denholme, which is on the edge of my constituency. My constituents and I are wholly opposed to it, and it has made me look further into the benefit of wind farms. I want to talk about the bigger picture rather than focus on my particular area, because I think that wind farms are one of the biggest scandals in public policy. The more one looks into the issue, the more of a scandal it becomes. People might refer to my constituents and me as nimbys and use it as a term of abuse, but I would take it as a compliment—I am proud to be a nimby. By definition, nimbys are people who are concerned about their local area and community. We should not be disparaging about that; we should be proud of being nimbys.

I speak as one of the five MPs who voted against the Climate Change Act 2008 in the previous Parliament. It is a great irony that those environmentalists who are such zealots for things like wind farms are prepared to see such damage done to the local environment by wind farms being put up in the most inappropriate locations. We really need a change of tack.

It is surprising that no one has yet pointed out that one of the Government’s problems is that wind farms are a huge part of their attempts to deliver a renewables obligation that has been handed down to this country by the European Union. This Government therefore feel that they have no option but to go down that route, however desirable or undesirable it may be. I do not think, however, that that is a good enough reason to impose such a ridiculous policy on this country.

Many green activists may have us believe that wind farms are a painless panacea and that they are marvellous and very green, but that is nonsense. My constituents want to know how much this is going to cost them. How much will it add to their bills? To be fair, the Department of Energy and Climate Change has been open and honest about the issue. It has made it clear in parliamentary answers that there will be a rise in gas and electricity bills of 18% and 33% respectively for domestic consumers, and of 24% and 43% respectively for medium-sized businesses. That means that, by 2020, the average annual domestic electricity bill will have risen by £105, and that the average medium-sized non-domestic user will face rises of £246,000. That is an increase in their energy bill just in order to follow this particular policy.

It is a ludicrous situation. We are trying to encourage and help our manufacturing businesses—we have a crisis in this country with people relocating their manufacturing business elsewhere—but the Government are pursuing a policy to add a quarter of a million pounds to their energy bills, and we wonder why companies relocate to countries such as China, where they can churn out whatever they want because they do not really care about this. The Government need to do some joined-up thinking.

We seem to not want to upset the green zealots who send us postcards from Friends of the Earth, but why not be honest about what their policy actually means? It is easy to say, “Yes, I agree with your postcard about green energy,” but why not be honest? What they are actually saying is, “We want to add all this cost to your energy bill and to those of manufacturing businesses, and we want them to relocate abroad.”

[Huw Irranca-Davies]

Will the hon. Gentleman give way?

[Philip Davies]

I hope that the shadow Minister will be honest about what he believes.

--- Later in debate ---

[Huw Irranca-Davies]

That is why I am intervening. I am sure that the Minister will reiterate what I have to say. Would the hon. Gentleman care to comment in his passionate oration on the current comparative prices between ourselves and France and Germany, which are two of our nearest neighbours, and how we compare internationally as a place to do business in terms of electricity and energy generation prices?

[Philip Davies]

I am pleased that the shadow Minister has mentioned that, because I will mention some illuminating international comparators in a moment. As my hon. Friend the Member for Beverley and Holderness (Mr Stuart) has made clear, there is no evidence that our constituents are prepared to pay more for their electricity in order to pursue these polices. In fact, only 15% of people polled said that they were either “fairly” or “very willing” to pay higher electricity prices if the extra money funded renewable power sources such as wind.

[Philip Davies]

Perhaps we will be gracious enough to introduce those kinds of limits when we have about 80% of the world’s manufacturing in our country. Given that we are not in that position, I would like to think that my hon. Friend would like to help the manufacturing industry in this country.

The bottom line is that these policies will produce for Britain the most expensive electricity in the world if we carry on down this particular route. Is it morally or politically acceptable, particularly at a time of national austerity when families are struggling to pay their bills, for the Government to keep raising them just to meet an EU target? I do not think it is. It will hit the poorest people in our communities first.

I do not understand why the people who propose these green policies are so shy about it. Anyone can say that they are in favour of green energy. It is like asking someone, “Would you like a Rolls-Royce car?” Most people would say, “Yes,” but if one were to ask, “Would you like a Rolls-Royce car? You’ll have to spend the rest of your life living in a tent to pay for it?” they might say, “No.” If we ask people whether they are in favour of green energy, they say, “Of course we are—it sounds marvellous.” However, if the hon. Member for Ogmore (Huw Irranca-Davies) were to ask them whether they were prepared to pay astronomical bills in order to pursue that, I think that he might get a different answer.

[Huw Irranca-Davies]

Will the hon. Gentleman give way?

[Philip Davies]

I have given way enough, and others want to speak. The point is that I find it nauseating to hear politicians for ever bleating on about how terrible fuel poverty is when those very same politicians advocate policies that entrench fuel poverty in this country and make it worse. They should be honest about what they are doing. They cannot in one breath say, “I want to see more wind power in this country; it will add this amount of money to people’s bills,” and in the next breath say, “Isn’t it terrible how bad fuel poverty is?” I find that nauseating.

At the moment, Britain is only obtaining a fraction of its electricity from renewable sources. That will have to be expanded massively to hit these targets. The wholesale price of that quantity of electricity is about £1 billion. However, on the renewable obligation, the complex subsidy paid to generators but drawn indirectly from bills adds a further £1.4 billion to those bills. That more than doubles the cost to the British consumer. If 30% of UK electricity is to be renewable in 2020, an ongoing annual subsidy of £6 billion a year or more is required. That is before all the hidden costs of major grid expansion and so on.

--- Later in debate ---

[Huw Irranca-Davies (Ogmore) (Lab)]

It is a delight to take part in the debate. I congratulate not only the hon. Member for South Northamptonshire (Andrea Leadsom), but all hon. Members who have contributed. It has been a genuinely good debate. Many hon. Members have spoken with passion. I did not agree with every point that they made, but I shall come to that. They did speak very well and have done their job commendably as constituency MPs, speaking on behalf of their constituents. I do not say that in a patronising way. It is what we are sent here to do. Sometimes we are denigrated for this job, but we are actually sent here to perform on behalf of our constituents and to make the points that are necessary.

I want to make a point that is perhaps obvious but is rarely made in these debates. It is rare to find an energy proposal of any type that attracts universal commendation. It is rare to find a proposal to which no objections have been made. That is the case whether the proposal involves onshore wind—the subject of today’s debate—or offshore wind. Offshore wind was at one time—we heard this comment today—seen as our salvation, not necessarily because it was the new green energy messiah, but because it was the alternative to onshore wind. Then when offshore wind was objected to, as it frequently was, barrage, wave and tidal technology became the possible messiah, and so on. Hydro is another one; hydro turbines have been described as fish blenders.

Nuclear energy is popular in some areas. All credit to the previous Government on that. It is great that we are all now lined up across the three major parties in our determination to deliver nuclear, and we need to do it at pace. In some of the places where there have been nuclear facilities and jobs have relied on the nuclear industry, there is a tremendous wish for us to get on with that. With the previous Government, through the independent Infrastructure Planning Commission and the national policy statements, and now the present Government pursuing the agenda, we hope that we will get the new plants up and running, but of course they are contentious.

Biomass generation is criticised because of the transport implications and sustainability issues. Waste incineration is criticised—it goes on and on. All I shall say is that we cannot create the energy mix that we often talk about, from both Front Benches, with little wind turbines on chimneys—although fair do’s to the Prime Minister for having a darned good try. I am sure that he is not assuaging his middle-class guilt, as the hon. Member for Daventry (Chris Heaton-Harris) put it. He is making a contribution, as we all do with photovoltaic panels, wind turbines, deep geothermal and whatever else we do. My sister-in-law in Ireland has a massive field full of geothermal capacity. That is fantastic. All those things contribute, and so does onshore wind in some ways.

I want to respond to the points that have been made. First, the hon. Member for South Northamptonshire gave a very passionate and eloquent critique of onshore wind, describing a tug-of-war between local and national interests. That is where much of the debate has focused. She made the point that we cannot rely on wind. No, we cannot rely entirely on wind, but I strongly suggest that we have to rely on wind as a contributor to our energy mix, in the same way that we have to rely on marine and tidal power and on getting over the investment hump in relation to that. They will all play their part. Wind is not the entire answer and certainly nuclear is not the only answer, either.

The hon. Lady referred to the former CBI director, Richard Lambert, saying that nuclear is the answer. It is indeed part of the answer. We are joined up on this: we have to get on, look for the new generation of facilities and deliver them on time, because they will provide a significant amount of our capacity. I think that the mood in the country has changed towards that. It has taken some time for us to get there, but we have, although nuclear is not the only way forward.

The hon. Lady went through a range of areas that other hon. Members have covered. Those included intermittency or variability of wind quality, the need for interconnectivity and the costs that come with that, and the need for price support. I shall simply say, as has been said in the comprehensive spending review, that it is not only wind that needs mechanisms for support, both for the initial capital investment and for the ongoing revenue costs of operating. It is not alone, by any means. The hon. Lady sees the Localism Bill, as many do, as a way to put power back into the hands of the people. It has been claimed that we could see a massive growth in onshore wind turbines as a result of the Localism Bill, but others said that they expected to see a slowing down in their development. I am not sure which it will be, but I am sure that the Minister will respond to that point.

In an intervention, the hon. Member for North East Cambridgeshire (Stephen Barclay) said that legally binding targets are questionable. I would ask whether the Minister agrees with him. Those are legally binding targets. We are fully signed up to them, and I suspect that the hon. Gentleman is as well. We need to deliver on them, not walk away from them. I hope that the Minister does not intend to revisit them, revoke them or try to argue his way out of them. Both Front- Bench teams are committed to them; by that I mean both Liberal Democrats and Conservative, and Labour.

[Stephen Barclay]

Would the hon. Gentleman not agree that, in trying to meet those legally required targets, we start from a much worse place? Instead of being at 10% in 2010, which is what the Labour Government signed up for, we were below 8%. The permanent secretary to the Department of Energy and Climate Change said that we would be at 8% by the end of 2010, and that we would not reach 10% until the end of 2012. We will have only eight years left to ensure that a further 21% of our needs are met by renewable energy.

[Huw Irranca-Davies]

In response to the hon. Gentleman’s well-observed intervention, the question is how to accelerate our drive for renewables. Part of it will come through the work being done by the coalition Government in driving for offshore energy, and part of it will come through microgeneration. We often banter from the Front Benches on this question, but the wind ports competition, with its £60 million investment, was set up by Labour. This Government have delivered—well done—and Gamesa, Siemens, Mitsubishi and others are coming in with jobs on the back of it. We also have to do it with onshore wind.

I agree with the hon. Gentleman, but the logical extension of his argument is that, unless he says no to onshore wind, onshore will have to make a contribution. We have to find a way through the Localism Bill to make that happen. As has been said, we need to see a mushrooming of local communities saying, “We can now see the community gains. We are going to go for this, and we’ll do it for ourselves.” That would be great. I hope that hon. Members are right, but we have to see what the Minister has to say about it.

The Minister was asked whether he is considering bringing locally determined projects up to the 100 MW level from the current 50 MW. There has been much debate on that over the years. I do not think that he is considering that, but perhaps he would clarify the situation.

My hon. Friend the Member for Workington (Tony Cunningham) spoke passionately not only for his constituency but for his constituents. I was with him there on an occasion of great trial and disaster at the time of the Cumbria floods. He spoke eloquently. West Cumbria is a beautiful area, with great people. He was right to speak of the contribution that can be made by other energy mixes, including the Solway Firth barrage and the potential for new nuclear build.

I guess that the trick and the theme of this debate is the balance between the local, the regional and the national. I think that all Members here today agree that we need to do three things—to develop nuclear energy security, to do so in an affordable manner for UK plc and for Mrs Miggins, who lives at the top of one of the valleys, and to hit our low-carbon targets. The theme of our debate is who is to bear that cost, and who will benefit from the jobs that could be created from green technology.

The hon. Member for South Dorset (Richard Drax) shares his name with one of the most well known rapid reaction generation facilities, the co-stoked biomass Drax power station. It is beyond today’s debate, but it raises the question of carbon as we move forward with our electricity market. He asked whether we needed onshore wind farms in order to keep the lights on. I hope that I have made it clear that we do. He also spoke of listening to the community’s concerns—he said that if the community says, “We don’t want these here”, their voices should be heard. It is vital that communities’ voices are heard, but we need a balance. He made an interesting point about common sense in connection with the Localism Bill, so I look forward to the Minister and his team drafting common sense into legal statute.

The hon. Member for Weaver Vale (Graham Evans) took a technocentric approach, putting great faith in our engineering, technical and scientific capacity, particularly for developing our nuclear future. He also spoke of his opposition to local wind farms, as did many Members.

The hon. Member for North Dorset (Mr Walter) despaired of the Secretary of State’s warm words for larger wind turbines. I am sure that the Minister will relay those thoughts to the right hon. Gentleman. The hon. Gentleman spoke unfavourably of the market mechanism. There are possibly more market mechanisms to come that could incentivise low-carbon or renewable technologies. Indeed, they are necessary if we are agreed on having a lower-carbon future.

The hon. Member for Beverley and Holderness (Mr Stuart) said that we would see much more onshore wind energy as a result of the Localism Bill, as communities across the land grasp the opportunity of community engagement. I am not sure that that is quite what Members here today were hoping would result from the Bill; we shall hear what the Minister has to say. Like several hon. Members, the hon. Gentleman asked whether the Minister is considering increasing the distance of turbines from homes to 1.5 km or more.

The hon. Member for Shipley (Philip Davies) made a passionate speech. He is not in his place, but I am sure that he will read Hansard. He said that one of the biggest scandals is wind energy. I could not disagree more. If we look purely at megawatt costs per hour, we will get one solution to the question of the way we should be going. It may be the French solution, it may be something else, but the UK has the potential to be at the cutting edge globally of green technology, design research and jobs. There is more to it than megawatt per hour costs. In response to what the hon. Gentleman said about international competitiveness on price, I am sure that the Minister will confirm that we are competitive throughout the EU on our basic energy prices—with the exception of petrol—including compared with France and Germany. The critical factor in that mix of energy security and low carbon is whether it remains affordable, as we drive towards a low-carbon future.

The hon. Member for Daventry spoke of his opposition to schemes in his area. He touched on microgeneration and the feed-in tariff review. There is a real job to be done there. That has caused some consternation, as was dealt with at the Dispatch Box today. However, that issue is for another day.

The hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw) spoke about minimum distances in England and the issues in his area. The hon. Member for Calder Valley (Craig Whittaker) spoke on a wide range of issues, including compensation, which came up again and again. Again, I ask the Minister to say whether he is considering compensation. Traditionally, requests for compensation have not been acceded to. Is he now considering it? He also asked whether the Minister would consider PPS22 and the minimum set-back distance.

The hon. Member for Rugby (Mark Pawsey) called for balance in this debate, and I welcome that. It was the first time that I have heard a Government Member start a speech by saying that we need some balance. He recognised the need for wind to be part of the mix. He called for fairness for developers, not least in putting up wind-testing devices, and to ensure that the information is shared with residents. He welcomed the Localism Bill.

I am rapidly running out of time. The hon. Member for Brigg and Goole (Andrew Percy) announced that he was a big supporter of renewables. He mentioned Siemens and Gamesa, and the investment on the back of the £60 million wind ports competition. However, he was not inclined towards onshore wind. He saw energy coming from the offshore sector, but that sector cannot do it alone. The hon. Member for North East Cambridgeshire also called for localism and the revocation of targets for wind generation.

As I am running out of time in this intense debate, I will just ask the Minister how he is getting on with Renewable UK’s balanced and considered view of the Localism Bill. On the idea of a local referendum, Renewable UK says that it should have an important part to play, but decisions need to be based on qualified professional advice. Other issues that it raises relate to pre-determination, pre-application consultations, the abolition of regional spatial strategies and the community infrastructure levy. The organisation has been restrained and controlled in what it has said. It has not tried to object to the Localism Bill, but, as the Minister knows, it is quite concerned that the measures could slow down the development of onshore wind farms. The hon. Member for Beverley and Holderness will be disappointed if onshore wind farms cease to happen because of the Localism Bill. I ask the Minister to tell me that that will not be the case.

--- Later in debate ---

[Charles Hendry]

We have had many contributions, so I hope that my hon. Friend understands that it will be difficult to respond to them fully if I start taking interventions.

Common sense also tells us that if we are to make the right decisions on our energy security and ensure that future generations look back and say that we did the right thing, we have to put new plant somewhere. During the debate, we have heard a lot of calls about why constituencies are not right for certain types of new development, but, with the honourable exception of the hon. Member for Workington (Tony Cunningham), I have not heard anyone saying, “I don’t want wind turbines, but I do want something else.” No one has volunteered for a new nuclear plant. No one has volunteered for a new gas plant, a coal plant with carbon capture or a biomass plant. If we do not put them anywhere, we cannot survive on invisible electricity. We all want the switches to work when we push them on, but we do not think that we need to see where the energy is being generated. Energy plants need to be sited in appropriate locations, and common sense tells us that that is the right way forward.

We have carefully considered the contributions that different technologies can make. I hope that my hon. Friend the Member for Shipley (Philip Davies) will understand that much of the cost that we are considering—the increase in costs for consumers—is based on an oil price of $80 a barrel. Everything changes when oil is $100 a barrel. The central strategy of the American Administration is based on oil at $113 a barrel. At that price, the move to a low-carbon economy brings real benefit to consumers because fuel costs would be lower than they would have been had their supply been based purely on hydrocarbons. We should be in no doubt of the important contribution that renewables can make towards our security of supply and low-carbon objectives. There is a range of different ways in which we can meet the challenge. After this debate, people can go on to the DECC website and look at our 2050 pathways calculator. We can tap in for ourselves and see what keeping our lights on does to carbon emissions. We are not wedded to one approach on the various technologies, but we do want to create an environment where people can see for themselves what will be the best technologies.

As for the suggestion that my hon. Friend the Member for North East Cambridgeshire made, we will not simply go down the route of targets. Targets alone do not deliver anything. Government must have a determination to show how targets will be met, which is why we will put in place road maps so that people can see what is happening and how it is taking place.

We will be taking forward this matter in the most robust way. We also recognise that as a result of the investment that has already been made in wind turbines, some 5.5 million tonnes of carbon emissions were avoided in 2009. That is the equivalent of the total annual emissions of the bus transportation fleet in this country, which starts to show the contribution that such technology is making.

Many of my hon. Friends have talked about the intermittency of wind, but that is an issue with which technology can increasingly deal. It is not about having a whole fleet of coal-fired power stations standing by to be pumped up into action when the wind does not blow. Let us consider the scope for pumped storage—an electricity interconnector to Norway, perhaps, or a new one into France that builds into its nuclear capacity—and the work that is being done on battery technologies and on a whole range of new technologies that will mean that the power can be there when we need it rather than when the resource happens to blow. That will be one of the big changes that we see coming through in this decade. The issue of intermittency will become one that can be fully addressed.

Regarding security of supply, we also need to recognise that when Sizewell B—our most modern nuclear plant—did not operate for seven months last year wind was powering 800,000 homes in this country during that time. So it is not a case of one technology or another. The core to a sensible energy strategy is ensuring that we have the right balance of different technologies within it.

However, we must change the way we go about achieving that balance and that is what I will focus on for the rest of my remarks. We have heard very sincere views expressed during this debate and I completely understand the views that my hon. Friends and others have expressed. But let me reaffirm the Government’s commitment to reform the planning system to ensure that communities have more ability to determine the shape of the places in which they live. Many of the changes will come through the Localism Bill, which has been discussed in Committee today.

We will abolish the regional spatial strategies and their top-down regional energy targets. Members have talked today about how planning applications have been overturned on appeal and granted on appeal. It will be much more difficult for applications to go through on that basis if the regional energy targets are taken out of the mix. Responding to the point made by my hon. Friend the Member for North East Cambridgeshire, I would say that people can already look to the cumulative effect that exists. However, I do not think that we want to go down the route of saying that each constituency should be generating energy only for its own needs and no more, because that would conflict with the principle that these facilities should be put in the areas that are most appropriate.

We are introducing provisions for projects to be submitted to local planning authorities, so that developers will have to show that they have worked with communities to develop their planning applications. That will help to develop a better approach regarding these applications, so that more of them can go through with planning consent being given locally rather than having to go to appeal.

We are introducing neighbourhood planning, to enable communities to draw up neighbourhood plans to shape the development in their own locality and to permit development without the need for planning applications. In addition, we are of course abolishing the Infrastructure Planning Commission.

I do not think that it is right to go down the route of having specific distances between onshore wind farms and residences. The way that such distances have been interpreted in Scotland and Wales is not actually the way that they have been enforced in those countries. However, the challenge that I face with regard to that issue is that very often we would find brown industrial land—a brownfield site—that we would all believe was an appropriate place for a wind turbine, but if one were to say that the presence of one house near to that turbine, within a distance of 1 km or 1.5 km, could stop that development from happening that would prevent us from using some brownfield sites, which could be well used in that respect.

The new planning framework will be a concise and more strategic document, which will bring together much of the work in this area to provide much greater clarity. It will provide much greater transparency, to ensure that local authorities can take well-informed decisions.

We are also looking at some of the other issues that have been raised today. We are reviewing how noise is monitored and how flicker is assessed, and we will publish the results of those reviews during the next months so that work on addressing those issues can be developed.

[Huw Irranca-Davies]

Will the Minister give way quickly?

[Charles Hendry]

I hope that the hon. Gentleman will forgive me but I will not give way, because there are important points that I need to make in the final moments that I have left.

We have brought forward the review of the renewables obligation certificates, because ROCs are an important way of ensuring that we can see investment in renewable technologies. However, we must ensure that those technologies are not put in place in unsuitable locations. The review will make sure that developers of wind farms are encouraged to go to the windiest locations, because the principle of ROCs is that if a company does not generate electricity it does not receive any payment. Therefore, ROCs are a better mechanism than some of the suggestions that have been made today about requiring planning committees to identify how much electricity can be generated by a particular development. We will develop that work on ROCs during this year.

We are examining the cost of grid connections, because often that cost means that there is an incentive to put wind farms close to where the electricity is needed rather than where the wind resource is strongest. That is why Ofgem’s fundamental review of how transmission charges are levied is so important and it is also why we have made it clear to Ofgem that its review of the transmission charging system must deliver security of supply as well as low-carbon generation.

We intend to go further by rewarding local communities, so that they have a real say about how their communities should develop. As part of the coalition agreement, we have announced that business rates from renewable energy developments will be retained locally. In parallel with that, I am pleased that the wind industry itself is looking at establishing agreed minimum standards for the contributions that wind farm developers will make to local communities. Financial contributions by developers might include, for example, investment in energy efficiency measures to reduce electricity bills, or cheaper prices. Of course, the most powerful reward for a community is to have a direct stake in a project. That is why we are keen to see this work happen.

In conclusion, we have had a helpful debate today. I hope that we have been able to show that we believe that wind energy onshore has an important contribution to make. What we can also do is to ensure that wind farms are put in the right locations, where the resource is strongest; that we have a funding mechanism that drives that process; that we have a transmission system that makes the development of wind energy achievable, and a planning system that shows that where communities decide they will consent to such a planning development they will derive a real, direct benefit from having it in their locality.

Once again, I thank my hon. Friend the Member for South Northamptonshire for securing such an important debate.