Energy Transmission Infrastructure (Carmarthenshire)

Michael Fallon Excerpts

Tuesday 19th November 2013 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Michael Fallon)]

I congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing this debate and on raising this important issue before the House.

The need for and impact of energy network infrastructure is a complex and sensitive matter. I welcome the opportunity to explain why there is a need to upgrade the electricity network, to clarify the approach that is taken in deciding where and how new infrastructure is delivered and to explain how that relates to Carmarthenshire.

The existing electricity network infrastructure is ageing. Much of it dates from the 1950s and 1960s, so considerable investment is needed to replace those assets as well as to expand our networks to accommodate the new generation that we require and to keep the lights on for our constituents and businesses. That is particularly the case where new generation is located far from demand or where the existing infrastructure is insufficient.

Developers of new generation need the reassurance that the network will be delivered in line with their project time scales so that they will be able to generate electricity once their projects are completed. We should recognise that those projects are substantial, long-term investments and that timely network delivery is crucial to their viability.

Before turning to the subject of electricity networks in Carmarthenshire, it might be helpful if I explain the wider approach to deciding on new network infrastructure. Under the current regulatory framework, it is for the network companies to submit proposals for new network infrastructure to the regulator, Ofgem, and relevant planning authorities. The proposals must be based on a well-justified need case such as new generation connections or the maintenance of a safe and secure network.

The network companies also propose routes and types of infrastructure. In doing so they are required to undertake extensive consultation with stakeholders, and make a balanced assessment of the benefits of reducing any adverse environmental and other impacts of new infrastructure against the costs and technical challenges of doing so. Those requirements are set out in their licence obligations under the Electricity Act 1989 to develop economic and efficient networks, and to have regard to the preservation of amenity and the mitigation of effects that their activities could have on the natural beauty of the countryside.

[Hywel Williams]

Will the Minister assure the House that all alternative means of transmission will invariably be considered—for example, when grounding or “under-seaing” cables, or is it, as I heard candidly from an energy sector specialist that, “They won’t offer undergrounding or under-seaing as a choice because they are just too expensive”?

[Michael Fallon]

As the hon. Gentleman knows, I must be careful not to comment on the specific application that lies at the heart of that, but I repeat that in fulfilling their licence obligations companies must not only develop efficient and cost-effective networks but have regard to the preservation of amenity and the mitigation of effects that their activities have on the natural beauty of the countryside. That is the balance they have to strike in their applications.

In addition to legal requirements to consider the wider impacts of new network infrastructure, Ofgem published in July this year information for stakeholders on how that should be taken into account. It clarifies that network companies are required to consider wider impacts and alternative solutions to overhead lines. That regulatory approach is reinforced by the Government’s energy national policy statements, which set out the framework for factors to be considered when consenting to an infrastructure project of national significance. It makes clear—this may help Opposition Members—that cost should not be the only factor in determining the type of network technology used, and that proper consideration should be given to other feasible means of connection, including underground and sub-sea cables. I hope that balanced approach provides some reassurance to those areas potentially affected by cables and pylons that the need for infrastructure is carefully assessed, and that alternatives to new overhead lines are considered seriously.

Since costs and technical difficulties vary so much from project to project, it is important that each is assessed case by case to ensure that the right planning decision is taken each time. The Government consider the costs and benefits of undergrounding electricity lines important issues that need to be considered carefully. That is why my Department arranged for an independent study to provide clarity on the practicality, whole life costs, and impacts of undergrounding and sub-sea cabling, as alternatives to overhead lines. That report was published in January 2012, and its findings are generally consistent with the comparative costs that National Grid quoted when evaluating options on current projects. The report should provide a useful point of reference to inform the planning process.

Let me turn now to the need for, and the development of, network infrastructure in Carmarthenshire. Consent for the Brechfa Forest West wind farm in Carmarthenshire was granted by the Secretary of State in March this year. The application for the electricity network infrastructure in Carmarthenshire to connect the wind farm will be decided by the appropriate planning authorities and Ministers. It would not be appropriate for me to give my views on the particulars of this project. However, I can say that I do recognise that many people feel very strongly about pylons and the impact they can have on the landscape.

Effective consultation with local communities and other interested parties is a vital part of the planning and regulatory approval process. When making proposals for new infrastructure, network companies have to demonstrate that alternatives were considered and why the preferred option is justified. That in turn must show that stakeholders have been engaged effectively. Western Power Distribution, the distribution network operator in Carmarthenshire, has started a consultation process that will continue throughout 2014 to seek views on route options for the wind farm connections. It expects to submit an application for consent to the Planning Inspectorate and it will ultimately be determined by the Secretary of State.

I am encouraged by the greater levels of stakeholder engagement and consideration being given by network companies to alternatives to overhead lines since the new planning framework was introduced. That is exactly the behaviour that the new planning and regulatory frameworks require.

I thank the hon. Members who have participated in what is an important debate. Our challenge is to build a low-carbon economy based on a mix of energy sources that meet our environmental targets and our security of supply needs, and do so in a way that delivers value for money for our consumers.

Meeting our future energy needs will require the expansion of our electricity network. Deciding where and how this infrastructure is delivered requires informed and balanced consideration of a number of factors, including costs, environmental impact, and the needs of local communities and the country as a whole. The planning and regulatory approval processes for new electricity network infrastructure require that stakeholders are consulted properly on these important decisions and that their views are demonstrably taken into account. This is now due to happen in Carmarthenshire where Western Power Distribution is consulting stakeholders in developing its proposals, and I strongly encourage all those with an interest now to engage with Western Power Distribution in this process.

Question put and agreed to.