Draft Renewables Obligation Closure etc. (Amendment) Order 2016

Melanie Onn Excerpts

Wednesday 2nd March 2016 General Committees

[Melanie Onn (Great Grimsby) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Gillan. Great Grimsby produces a higher proportion of our electricity from renewable sources than any other town or city in the country, making my constituency the renewable capital of England—although mistakenly called a city, for some reason. That is partly as a result of the efforts of the solar industry. We have 10 companies working on solar installation in the town, and perhaps because hundreds of people in the town work on the offshore wind farms, the industry has raised people’s awareness of renewable energy more widely. Solar was, until recently, a growing sector in the town.

The director of Greater Grimsby Community Power has told me today that, although he is confident that he can meet all of his existing plans before the closure of the renewables obligation, the move that is being discussed today will mean that his organisation will not be able to expand beyond its current output. I think that that will be replicated across many organisations and companies in the country today.

My constituency really needs more of the jobs that these organisations are able to offer. For years we have consistently had one of the highest unemployment rates in the country, but the growth in the renewable energy industry from solar and other sources is giving people in the town renewed hope for their employment prospects and those of their children. As I mentioned to the Minister this morning, I recently hosted the renewable energy skills fair. Over 130 people attended, and they are keen to move into the sector, but the Government’s change in policy for the solar industry, particularly since May 2015, has led to the loss of thousands of jobs nationally, with many more at risk of going in the near future. This has been done at a time when the sector really is on the cusp of becoming economically competitive; so many more thousands of jobs could be created if the Government took a different approach.

Looking at the renewables sector more widely, the early closure of the renewables obligation could have a damaging impact on investor confidence across the sector. I know—as does the Minister—from speaking to the major companies that have built offshore wind farms in my constituency, that confidence is the key to unlocking private sector investment. What message are the Government sending to wind, tidal, biomass, nuclear and any other subsidy-reliant sectors by going back on their previous plans and cutting subsidies earlier than they previously agreed? This measure is damaging to our country’s reputation as a safe place to invest.