Wind Farms (Mid-Wales)

Huw Irranca-Davies Excerpts

Tuesday 10th May 2011 Westminster Hall

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

It is a delight to serve under your stewardship this morning, Mrs Riordan.

I congratulate the hon. Member for Montgomeryshire (Glyn Davies) on introducing this debate, and on speaking eloquently and passionately on behalf of his constituents. I know that the issue of wind farms has engaged him for quite some time and continues to do so. He has made that clear today, and I am sure that the Minister will respond in great depth to the debate.

I also congratulate the other Members who have spoken—my hon. Friend the Member for Ayr, Carrick and Cumnock (Sandra Osborne) and the hon. Members for Shrewsbury and Atcham (Daniel Kawczynski), for Brecon and Radnorshire (Roger Williams) and for Wells (Tessa Munt). Who would have thought that a debate on wind farms in mid-Wales would have stimulated contributions from Scotland to Somerset and all points in between? That shows the pulling power of the hon. Member for Montgomeryshire, even when he is on crutches; I also wish him well in his recovery. As we strolled, chatting, to Westminster Hall today, he told me that things were going well and that he would be up and running very soon. I say “well done” to him for that.

I turn to the nub of the debate. This is a difficult situation, both for individual MPs representing their constituents and for the Minister. We wrestled with the same issues when we were in government. We are committed to local interests and local democracy, and at the same time to national interests and national democracy, whereby parties stand on manifestos and accept commitments to renewables and climate change targets. How do we square that triangle? How do we ensure that the voice of people at a local level—including my own voice and that of my constituents—is heard, while ensuring that we deliver a national imperative in terms of energy security, energy affordability and carbon targets? Indeed, we must also deliver on our global ambitions to be a world leader in renewables.

At the outset, I must point out that recently we had a very good Westminster Hall debate on wind farms; it focused on the Localism Bill and so on. I will turn to that Bill in a moment. There were 20-odd contributors to that earlier debate, and I think that a couple of the Members who are here today also attended it. I will not waste everyone’s time by re-rehearsing the arguments that we went through, but it would be fair to say that a fair degree of scepticism towards onshore wind farms was demonstrated in that debate. I do not share that scepticism, and I will explain why in a moment. I recognise the need to have local input into these decisions, but I do not share the scepticism, in various degrees, that some people have about wind farms. Let me explain why.

[Daniel Kawczynski]

Regardless of whether one believes in these wind farms, does the hon. Gentleman not agree that it is preferable to have them offshore rather than onshore?

[Huw Irranca-Davies]

There is an interesting and live debate about not only the appropriate way to deliver energy security in the UK, to which renewables definitely contribute—people often say that they are not part of our energy security—but the most affordable way to do so. That debate has continued in the past few days, and it addresses that very question: should it be onshore or offshore, or should other types of technology be involved? That is the sort of debate that we should have in Parliament. If the hon. Gentleman will bear with me, I will come to that later.

Before I do, I want, on behalf of the hon. Member for Montgomeryshire and other Members who have spoken today, to ask some questions about mid-Wales and the routing of the transmission. Can the Minister provide an update on the consultations, and on any outcomes from them, including any amendments being considered to plans or to the routing and the strategic optioneering report? Will he comment on any consideration that has been given, or is likely to be given, to the community benefits? Such benefits were remarked on by the hon. Member for Montgomeryshire, and I wonder whether the Minister will update us on the individual developments or on the grid transmission development.

The Minister has spoken not only about renewables and the offshore development off the north-east east coast of England, but about a number of technologies. How will he ensure, if this development progresses to the scale that has been outlined, that the absolute maximum benefit in the form of local and regional economic impact accrues, and that the benefits are not leaked out of the area? How will he deliver on what he has previously said—that he wants these developments to create jobs and to input into the local and regional economies? If the development is to go ahead, that needs to happen.

Can the Minister also update us on the progress of the transport routing, an issue that has caused great concern to people in the hon. Member for Montgomeryshire’s constituency and those of other Members? Will there definitely be another round of consultation in autumn this year so that people, including Members, will have a further opportunity to comment on the route alignment and other aspects of the project?

The issue should not be rushed through. Can the Minister update us on the delay in the progress of the national policy statements, both generally and in terms of transmission and the UK energy infrastructure? We all know that our 75-year-old infrastructure is exactly that. It was a landmark when it was rolled out 75 years ago, but it is not now fit for either what we are trying to do with renewables or what we need to do in developing a smart grid. The Minister and I agree on that, so can he give us an update on what is happening with the national policy statements? They have been slightly delayed, and it would be good to hear when we will see them and what input parliamentarians will have.

The crux of the matter appears in a phrase that, curiously, has been hurled at the Labour party by Conservative Members, despite our very best efforts over more than a decade in government. They have said that we had a “wasted decade” of renewables, largely because of what they saw as the failure to roll out, at speed and at scale, onshore wind. That phrase has been used if not by the Minister, certainly by his colleagues, and in recent months.

I acknowledge that the Labour Government did not succeed in rolling out onshore wind at the scale and speed that we had anticipated. Curiously, that was very much because there was strong local input into the decisions, which either slowed things down or deterred investors from staying the course and developing onshore wind to any great scale. That is why, before we left government, we put in place a huge expansion of offshore wind energy, which is much more expensive.

That cost falls, of course, on us. There is a cost implication, but the plan will now deliver if the Government hold true, as they are doing. They have delivered on the £60 million for the investment in ports infrastructure, which has led to four major companies, including Siemens and Marconi, coming in and saying that they will put the jobs into those ports, and manufacture and develop offshore. That is fantastic, and it is because we were not able, because of local input, to go as fast as we wanted with onshore. One of the critical decisions here, not only for mid-Wales but generally, is whether the Government will now see onshore as an area for expansion over the next five to 10 years.

[Glyn Davies]

I am enjoying listening to what seems to be a very fair and reasonable assessment of the position. In this debate I, and others, do not have a party interest; my interest is purely that of my constituency. I know that people in my party will disagree with me and that there are different views right across the parties, but surely we can all agree that if onshore wind will be part of the overall picture of dealing with our renewable energy targets and meeting our commitments to the European Union and beyond, we have to do it in the best place.

TAN8—technical advice note 8—does not do that. All it does is identify an area, without giving proper thought to access. It does not even allow onshore wind farms to be built in the best places. It is policy guidance, from the National Assembly for Wales, that is totally prescriptive about where developments should go, and which completely takes away power from local planning authorities—and, indeed, from the people.

[Huw Irranca-Davies]

I understand that the hon. Gentleman, in securing this debate, has spoken directly for his constituents, and in my opening remarks I tried to raise some issues that are of direct concern. The debate is also underpinned, however, by where we are heading with onshore wind, and I therefore want to put some questions to the Minister. I do not want to trespass; I know that the hon. Gentleman is a former Member of the great institution that is the National Assembly for Wales, and I do not want to tread on the Assembly’s toes—not least when, as far as I know, Ministers are not yet in place.

The Minister is aware of, and the Opposition are committed to, the renewable energy directives. We have a commitment to generate 15% of our energy from renewables by 2020. Interestingly, in the past week Policy Exchange has made its view clear, describing wind as an “unnecessarily expensive” part of the mix for energy security and affordability. I know that that think-tank does not determine Government policy, but traditionally it has had a huge influence on it, and its view contrasts with what the Secretary of State recently, and rightly, said—that unless we make use both of wind and other renewables, we will be held hostage to rising external prices, particularly of oil, as we increasingly rely on oil and gas input.

Will the Minister take the opportunity today to distance himself from that Policy Exchange report? If we go down the route of saying that wind is now unnecessarily expensive, it is not only the investors—to whom the hon. Member for Brecon and Radnorshire referred—who will suffer, but our renewables commitments and our climate change commitments.

The Committee on Climate Change report that came out a few days ago recommends, interestingly, that we continue strongly with wind as part of the mix, that we look at scaling back on offshore, because of the costs, and that we push harder on onshore. Does the Minister agree? We had a debate here recently in which he spoke sensibly about the future of onshore wind, saying that more would be delivered by the Localism Bill.

Will the Minister reiterate that he does not see the Localism Bill as an impediment to onshore wind? If it brings community gain, will we see more onshore development of wind farms throughout the UK? If so, does he have some idea, as I asked in the previous debate, of what proportion of our renewables contribution onshore wind will form? The 20-odd Members who spoke in that debate all saw the Localism Bill as a way to stop, not help, onshore development of wind, with the exception of one Member who was outspoken in favour of onshore wind and thought that it would be wonderful.

Will the Minister comment on underpinnings? Late last night, we heard that one crucial thing underpinning what we will do with renewables and where we head on carbon commitments is our response to the fourth carbon budget of the Committee on Climate Change. If we can bolt that down, we can decide the most affordable way to fulfil our climate change commitments and develop renewables. If not, we are rudderless.

Last night, Cabinet discussions were leaked showing clear disagreements between the Secretary of State for Energy and Climate Change, who seems to be for accepting the fourth carbon budget and being legally bound to the Committee’s recommendations, and the Secretary of State for Business, Innovation and Skills, the Treasury and the Secretary of State for Transport, who oppose it. Unless we can pin down those matters, we are rudderless, and this debate will be somewhat meaningless. We will be willing to change, from Government to Government and Administration to Administration, how hard we drive forward, and whether we take our foot off the pedal. Will the Minister clarify whether the Committee on Climate Change report that underpins the issue will be accepted?

[Chris Heaton-Harris (Daventry) (Con)]

I would like a tiny bit of clarification on the Labour party’s point of view about the budgetary proposal. If the hon. Gentleman is saying that Labour opposes accepting the proposal, that is a fantastic piece of news that liberates the Government and gives them plenty of scope to move in a more localist direction. My fear is that the people on the Committee are what we in this country call the progressive majority; we now know where they live, thanks to the referendum on alternative voting.

I would like to see a load of turbine proposals for Cambridge, Oxford, Camden and so on. I think that those people would change their minds pretty damned quickly when they saw the size of them. What is the Labour party’s position on the fourth carbon budget of the Committee on Climate Change?

[Huw Irranca-Davies]

I hope that that is not the Government’s position on the matter. When we were in government, we appointed successive Secretaries of State and established the Department of Energy and Climate Change to bring those themes together, and we accepted the reports of the Committee on Climate Change. I hope—I look at the Minister as I say this—that the hon. Gentleman’s intervention is not an indication that the Government, under pressure from Back Benchers or others, will make a U-turn away from our climate change commitment.

I want to hear the Minister’s response, and I have taken too long, so these will be my final remarks. The hon. Member for Montgomeryshire mentioned solar and wave and tidal power; I agree that we must do more with solar and much more with wave and tidal. If he were back in the Assembly now, I am sure that he would support the initiatives that they announced before dissolution to push forward wave and tidal power within Wales, as was done in Scotland. We must do so in England as well, but we have a way to go. At the moment, I am sorry to say, UK Government investment is in a hiatus. We have lost the grant funding mechanism for marine and tidal within England, and there is a feeling in the wave and tidal industry that things will not go forward. Solar is in disarray, and the Minister knows it. We await the end of the feed-in tariff fast-track review to see what will happen.

My final question to the Minister is this. Will he address those issues, particular to the mid-Wales situation, that relate to Shropshire and other places? Where are we on onshore wind as part of the renewable mix? Is policy changing, as the hon. Members for Brecon and Radnorshire and for Daventry (Chris Heaton-Harris) hinted, or are the Government still as committed as we always were to a mix that includes onshore wind as well as offshore wind, wave and tidal power and microgeneration?

--- Later in debate ---

[Charles Hendry]

I am grateful to my hon. Friend for his kind comments. I have been in office for nearly a year, so by past records, I am up for replacement. I think that it was actually 16 Ministers in 13 years. I hope that I will have the chance to stay around a little longer to ensure that we end up in a sensible place on these policy matters.

The hon. Member for Ogmore asked about the fourth carbon budget. He knows very well that I will not comment on leaked or supposedly leaked documents, but the Government understand totally the need to take the issues extremely seriously and put in place a robust set of targets and mechanisms to drive forward our ambition and our ability to respond. I will reply more directly in a moment to the point made by my hon. Friend the Member for Shrewsbury and Atcham on the important grid issues.

It is clear from all the studies that I have seen that the United Kingdom has some of the best wind resources in Europe. Wind turbines tend to generate electricity about 70% to 80% of the time—not necessarily at full capacity, but during that time, they are turning and generating some electricity. Wind, unlike most other sources of electricity generation, is a free and unlimited source of fuel. It is also reliable overall—the likelihood is that low wind speeds will affect half the country for fewer than 100 hours a year. The chance of turbines shutting down due to very high wind speeds is low.

Onshore wind is one of the most cost-effective and established renewable technologies. We have to make sure that we take account of the needs of consumers by ensuring that they do not pay more than is necessary to decarbonise our electricity supplies. We can do that by making sure that onshore wind has a continuing role. However, although it is clear that onshore wind should continue to be part of the solution to the massive energy security and low-carbon challenges that we face as a nation, it needs more democratic legitimacy than it has today, and I intend to ensure that that happens.

We have to protect communities from unacceptable developments. We have already started to review the issues that often cause concern to local communities. We recently published a report on shadow flicker from wind turbines—an issue that the hon. Member for Ayr, Carrick and Cumnock mentioned—and we have commissioned a report on wind turbine noise. We must now go much further. Wind turbines should be positioned where the wind resource is strongest, so this year we are introducing a full review of the funding mechanism of the renewables obligation certificates to ensure that subsidies will not make it attractive to put wind farms in unsuitable locations. The funding mechanism must also reflect reductions in costs.

The cost of grid connections also means that there is an incentive to put wind farms closest to where the electricity is needed, rather than where the wind is strongest. My hon. Friend the Member for Shrewsbury and Atcham has made an extremely important point about the disconnection between areas identified for development and accessibility to the national grid, and the impact that that has on communities. That is why Ofgem’s fundamental review of the way in which transmission charges are levied is so important. It is also why the Government made clear at the start of Ofgem’s review that the transmission charging regime must deliver security of supply as well as low-carbon generation. It is the Government’s responsibility to ensure that the charges that consumers pay for renewable energy are as efficient as possible.

Most importantly of all, there needs to be a new relationship between wind farms and the communities that host them, as my hon. Friend the Member for Aberconwy (Guto Bebb) said. At present, too often a community can see what it will lose but not what it will gain by having a wind farm in its midst. That is why we have been exploring the financial mechanisms that should emerge to support communities that decide to host wind farms—particularly in England, where we have more responsibility for these matters—and that do more to encourage such community developments. “Community energy online” is a scheme whereby local groups can come together and look at what will be the best renewable energy schemes for their community. I am absolutely convinced that we have to address the issue of democratic accountability and public acceptability. The more these schemes can be seen to come from the ground up—that is not intended to be a pun—and to be developed with community support, the more we can deal with the democratic deficit.

[Huw Irranca-Davies]

I thank the Minister for giving way. I have a straightforward question. Given what the Minister has just said, the changes that the Localism Bill will make and the desire to address the democratic deficit, does he intend there to be more development of onshore wind than in the past decade and more? Is he hopeful that more communities will take up onshore wind development?

[Charles Hendry]

I am afraid that the hon. Gentleman’s question shows that he does not quite understand localism. Localism does not mean that I, the Minister, say that I want more or less; it means that I want communities to decide how they want to develop. Once they have seen what will be available to them, the package of benefits and the direct support that will come to their communities, they will rightly get involved in and make those decisions. Clearly, a few of the large developments will still need to come to Ministers once the Infrastructure Planning Commission has been abolished, so those will be national issues. What we are keen to see is appropriate development in appropriate locations with community support. That will be one of the most significant changes under this Administration.

To answer a point made by the hon. Member for Ayr, Carrick and Cumnock, the Localism Bill will provide specific measures to enable communities to shape development in their own locality. That is clearly a matter for England rather than Scotland, but we hope that the new Scottish Government will look at whether they can follow in some of those areas.

We have heard much about the issues relating to technical advice note 8, and I understand the concerns that have been expressed. The process is carried out by the Welsh Assembly Government, and TAN 8 identifies seven strategic search areas where major wind farms, which are defined as those over 20 MW, should be located. Three of those—areas B, C and D—are in mid-Wales, which is why we have seen more applications for development in those areas than elsewhere. A review of that approach would have to be carried out by the Welsh Assembly Government. As a Minister who may be required to make some of those decisions, I know that we are talking about not a binding requirement but a material consideration, and applications outside those areas can also be considered.

A related issue—I know that this is of concern to my hon. Friend the Member for Ludlow (Mr Dunne)—is the knock-on consequences for the grid infrastructure of the way in which those areas have been chosen, and the possible impact in England and other areas outside those covered by TAN 8. That is a material issue that has to be looked at in more detail, because one simply cannot put in place a new development without the grid infrastructure to support it. That is the issue to which I now turn.

There is no existing high-voltage network in mid-Wales, so the necessary infrastructure will have to be built. The options are currently being developed by the National Grid Company and SP Manweb. The applications for those connections will be decided by the appropriate planning authorities, which may include Ministers, so I am constrained in what I can say on specific issues. However, to respond to a point made by the hon. Member for Ogmore, we expect a further consultation on specific routes to be completed by the end of the year. We can learn more about how that consultation process works. I understand that my hon. Friend the Member for Ludlow is concerned that sometimes it involves the National Grid Company and not the developers together. I think that people involved in the consultation process would prefer to see all the parties coming together.

The report commissioned by KEMA and the Institution of Engineering and Technology is being refined—not by us, but by the organisations themselves—to make sure that it takes full account of the data collection available and the technical analysis. I hope that it will be published soon. It will certainly give us a much more factual basis for understanding the costs of undergrounding in appropriate parts of the country, and of putting the grid connections undersea. The enormous number of parliamentary questions that I have been asked and letters that I have received on the subject as part of a national campaign mean that I am in no doubt whatever about how strongly my hon. Friends and other Members feel about the grid connection issues. I know that the National Grid Company takes the issue extremely seriously. It is required to look at both the costing and the environmental and social issues.

Ofgem’s recent transmission price control proposals, known as RIIO, or “revenue = incentives + innovation + outputs”, include incentives that should allow visual amenity to be properly assessed in conjunction with the planning process. We hope that the national policy statements can be published in the near future. As the hon. Member for Ogmore knows, we are holding them back until we have the interim report on new nuclear. The lessons from Fukushima are being looked at by the nuclear regulator, but I hope that we will be in a position to publish those shortly.

Finally, on construction traffic and the impact it may have, I am aware that the road infrastructure was not designed for the sort of transportation in which huge turbines are carried through small villages on small country roads. There has to be a solution to the problem. Individual developments have to address the issue in a constructive way. There has to be a satisfactory conclusion before a development can take place.

I hope that I have responded to many of the issues raised. This has been a fascinating and important debate. Again, I am most grateful to my hon. Friend the Member for Montgomeryshire for defying medical advice to be here to raise such a critical issue.