Renewable Energy Projects

Neil Carmichael Excerpts

Wednesday 14th July 2010 Westminster Hall

[John Woodcock]

Absolutely. We all recognise that money is tight throughout the country. The Government do not hesitate to paint a far more drastic picture than is the case, but we must find a way of breaking the deadlock. The importance of doing so is not simply to tackle climate change, fundamental though that is, but to ensure a greater level of energy security. Renewable energy projects can contribute not only to moving away from fossil fuels and the rising cost that will be tagged to such fuels in coming years, but to increasing energy security for the UK.

[Neil Carmichael (Stroud) (Con)]

Stroud, which the Minister has already visited, is awash with good ideas for renewable energy. I want to focus on micro-hydro schemes, because some obstacles must be removed, including possible objections by the Environment Agency. We must discuss that, and I have mentioned it in the House.

Social enterprises are important to provide traction for ideas, and plenty of information exists about them. Many people in Stroud know about them, and many people throughout the country should know about them. The previous Labour Government set out some interesting ideas about that and various mechanisms. A key point—

[Mr Jim Hood (in the Chair)]

Order. The hon. Gentleman’s intervention is too long.

[John Woodcock]

The hon. Gentleman is right to make that point, and to indicate the variety of renewable energy schemes that we must embrace. The issue is not just about onshore wind or offshore wind. The potential for hydropower is enormous in the UK at both micro level and a wider level. I was an adviser in the Department for Business, Innovation and Skills under the previous Government, which kicked off the study into the Severn barrage, but that is a subject for another debate. I will not take interventions on that, but it is crucial.

Community-owned schemes may make a difference because they engender a level of buy-in from the community. Baywind has paid a dividend to local residents who have bought into the scheme since its inception in 1996. As an educational establishment, it accepts regular visits from local schoolchildren and adults, and promotes the cause of renewable energy. The key point for onshore wind is that community ownership of the turbines has allowed the co-operative to avoid the controversy that has often surrounded turbines in other areas of the Cumbrian hills in my patch.

[Neil Carmichael]

I will be brief, Mr Hood. This Government are paving the way for communities to become involved in all sorts of renewables by returning business rates back to the community, and that is something to embrace. Does the hon. Gentleman agree?

[John Woodcock]

I made the point at the beginning that the scheme is interesting and welcome, and it is a contribution, but it does not go to the heart of the matter and that incentive will not tackle the problem. I will come on to the barriers facing co-operatives such as Baywind and local communities that want to establish their own energy supply.

I turn to the planning system. Energy4All is a not-for-profit organisation to facilitate community-owned renewable energy schemes such as Baywind. It may cost communities £150,000 simply to be part of the planning process, and at the moment they cannot be confident of success in navigating through that process. The coalition programme for government states explicitly that the Government

“will encourage community-owned renewable energy schemes where local people benefit from the power produced.”

That is in addition to the pledge on business rates.

As my hon. Friends said, local authorities should encourage community ownership, but at the moment we just ask them nicely to do so. Will the Minister consider ways of giving genuine preference in the planning system to community-owned projects? There must be safeguards, but community-owned schemes already show local buy-in, and we could greatly slim down the cost of the planning process by streamlining it to recognise that the ownership model has already achieved a level of community buy-in.

The Co-operative party has called for creation of a community energy and climate change unit, based on the successful Supporters Direct model, which promotes mutual ownership of football clubs. The core functions of the unit would be to bring together silo working in government. We are all guilty of that when in government; it is not a new phenomenon of the new Government. The unit would be able to give advice on legal structures, financial assistance, business planning and the regulatory framework, but it would not be prescriptive. There are many ways to skin a cat, and I hope that the Minister will recognise that there is a cat to be skinned, and will come up with some suggestions for his preferred method of doing so.

One way of making start-up costs easier for community projects—the model has been identified by Energy4All—is to encourage residents not necessarily to go for full ownership of a project, but to take a part-stake in commercial developers’ wind farms. In that system, the developer identifies the project and takes the risk, and the community simply buys a stake. The developer gains from improved community relations, and the community gains a direct stake in a project in its locality. However, there is currently little or no take-up of that opportunity, so we should all consider ways—I am interested in the Minister’s views on this—of giving developers a push and changing the culture of communities and commercial developers. Planning incentives may help, as long as there are proper safeguards.

Even under the current timetable, National Energy Action estimates that there are close to 5.4 million people in Britain—one in every five households—who are classed as fuel poor. Currently, we cannot say that renewables are a cheap form of energy. However, the previous Government’s proposals for micro-delivery and for local areas to come together in co-operatives could drive down the cost and make renewables more cost-effective. That was a key part of my party’s manifesto, and I hope the Minister will say that he will take up that proposal.

In the context of rising fuel poverty and the need for urgent action to reduce carbon emissions, the UK needs a major improvement in domestic energy policy and the way renewables are delivered. I recognise that that would require a culture change and that it is not simply about the Government, but I hope that in his response, the Minister will recognise the role of the Government in empowering communities. At their best, communities can do better than any Government or state organisation by taking direct control of the means through which they power their homes and making a direct contribution to lowering carbon emissions. In their own way—and this is what we all individually want to do—communities can tackle one of the greatest challenges that we will face over the coming years and decades, both for our country and for the world.