Energy Bill [Lords]

Debate between Simon Hoare and Andrea Leadsom

Wednesday 20th April 2016 Commons Chamber

[Andrea Leadsom]

To deliver on our manifesto commitment, the Government remain determined to bring forward the closure of the renewables obligation to new onshore wind in Great Britain. This commitment is based on plans that were signalled well before the general election last year, and that should not have come as a surprise to hon. Members or to industry.

Back in March 2015, my right hon. Friend the Member for West Suffolk (Matthew Hancock), then Minister for Energy and Climate Change, stated in this House:

“We have made it absolutely clear that we will remove onshore wind subsidies in the future”.—[Official Report, 6 March 2015; Vol. 293, c. 1227-28.]

Prior to that, in December 2014, the Prime Minister, speaking of wind farms, stated in the House of Commons Liaison Committee:

“we don’t need to have more of these subsidised onshore. So let’s get rid of the subsidy”.

We have been absolutely clear all along. The Government’s policy is to bring forward the closure of the renewables obligation to new onshore wind.

To protect investor confidence, the Government have proposed a grace period for those projects meeting certain conditions as at 18 June last year, as outlined in the statement by my right hon. Friend the Secretary of State for Energy and Climate Change on that date. The grace period provisions are intended to protect those projects that, at 18 June last year, already had relevant planning consents; a grid connection offer and acceptance of that offer, or confirmation that no grid connection was required; and access to land rights.

[Simon Hoare (North Dorset) (Con)]

As my hon. Friend said before setting out that list of warnings, and as we discussed in Committee, the proposals were in our manifesto, which commanded the support of the British people. Does she agree that we are again on thin ice, with the other place trying to interfere with the Government’s agenda, which has already been voted on by the British people?

[Andrea Leadsom]

Yes, my hon. Friend is exactly right. This is a manifesto commitment. Peers should listen to the manifesto commitment of this Government and respect it; that is normal practice, as I understand it.

The Government have taken action on a key concern raised by industry about an investment freeze. The clauses are therefore intended to ensure that projects that meet the core grace period criteria, and which were intended to be able to access the grace period as proposed, are not frozen out of the process. Since proposing this measure, the Government have continued to receive representations from industry suggesting that it supports and welcomes the proposals to address the investment freeze. The Government have also put in place a provision to ensure that an existing grace period for delays caused by grid or radar works will continue to apply.

We now need to get on and complete this Bill. As the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell) said in Committee, speaking for the Scottish National party:

“We agree that swift passage of the Bill with clear and consistent RO grace period provisions is needed in order to provide certainty to investors in the onshore wind sector as quickly as possible. The renewables industry fears that the longer legislative uncertainty over RO closure persists, the greater the risk of otherwise eligible projects running out of time to deliver under the proposed grace periods.”––[Official Report, Energy Public Bill Committee, 2 February 2016; c. 217.]

He is right.

In addition, these clauses give the Secretary of State a power to make regulations that would prevent electricity suppliers in Great Britain from using Northern Ireland renewables obligation certificates relating to electricity generated by new onshore wind stations and any additional capacity added to existing wind stations after the onshore wind closure date. This is a backstop power that would be used only if Northern Ireland did not close its RO to new onshore wind on equivalent terms to Great Britain.

Since our last debate on this issue, I am pleased to say that the RO in Northern Ireland has closed to large-scale new onshore wind stations with a capacity above 5 MW with effect from 1 April 2016. The Northern Ireland Executive are currently consulting on closing to stations at 5 MW and below.

Energy BILL [ Lords ] (Fourth sitting)

Debate between Simon Hoare and Andrea Leadsom

Tuesday 2nd February 2016 Public Bill Committees

[Andrea Leadsom]

The hon. Gentleman made two points, the first on the manifesto commitment. I want to reassure him completely. As my hon. Friend the Member for Daventry pointed out, we set out a clear commitment in our manifesto to give local people the final say on wind farm applications.

“When determining planning applications for wind energy development involving one or more wind turbines, local planning authorities should only grant planning permission if: the development site is in an area identified as suitable for wind energy development in a local or neighbourhood plan; and following consultation, it can be demonstrated that the planning impacts identified by affected local communities have been fully addressed and therefore the proposal has their backing.”—[Official Report, 18 June 2015; Vol. 597, c. 9WS.]

That is taken from the written ministerial statement from the Department for Communities and Local Government on changes to planning rules. The new planning tests reflect the Government view that wind turbines should get the go-ahead only when local people have said that they want them, and where.

To reply to the hon. Gentleman’s specific points on amendments to legislation, in order to achieve our goal of giving local communities the final say, we have to amend the Planning Act 2008 and the Electricity Act 1989 to put decision making into the town and country planning regime. The planning order that is laid does no more than that. Secondary legislation makes no change to the town and country planning regime; it merely removes matters from the Planning Act 2008. I hope that I can reassure the hon. Gentleman that it is absolutely our intention to give local communities the final say on wind farm developments.

I am grateful to the hon. Gentleman for raising his second point. The purpose of amendment 16 is to require the Secretary of State to report within six months after the Bill comes into force on how changes to renewable energy policy, including the changes stipulated in clause 79, have affected the UK’s ability to comply with the 2020 EU renewable target. The Government are already obliged to report on our progress towards decarbonisation of energy supply, the development of renewables and the development of energy efficiency. As the hon. Gentleman may be aware, we last reported our progress under the EU renewable energy directive on 21 January 2016, just under two weeks ago. The report says clearly that we surpassed the target for 2013 and 2014, with an average 6.3% of final energy consumption coming from renewable sources against a target of 5.4%. Renewable contributions to energy generation are increasing across heat, electricity and transport. Heat from renewable sources increased by 4.6% during 2014, a record 19.1% of electricity generation came from renewables in 2014 and the use of renewable biofuels for transport rose by 14% during 2014.

As well as the report of 21 January, we regularly publish statistics on energy use in a number of other publications. “Energy Trends” provides a quarterly update, the “Digest of United Kingdom Energy Statistics” is published annually, and statistics on greenhouse gas emissions, solar PV deployment, renewable heat incentive take-up and renewables obligation certificates and generation are published monthly. The 2013 electricity market reform delivery plan set out our ambition of achieving at least 30% of electricity from renewables in 2020. The hon. Gentleman will know that we are on course to achieve that, with renewables representing almost 20% of generation in 2014. I hope that I have reassured the hon. Gentleman. There are a lot of reports, and I am happy to send him details of each if it would be helpful to him.

I would like specifically to address the premise underlying the amendment, which concerns the impact of clause 79 on renewables deployment. The Government’s impact assessment has shown that we anticipate no foreseeable change in deployment rates arising from the implementation of clause 79. The clause simply sets out our plans to localise decision making for new onshore wind and not to change any of the support framework around onshore wind.

[Simon Hoare (North Dorset) (Con)]

I welcome local decision making for onshore wind. Will my hon. Friend confirm, for the benefit of my understanding if not that of anybody else on the Committee, that the clause means that applicants will no longer have the right to appeal a refusal to the planning inspectorate? Will she also confirm that it in no way removes an applicant’s right, if refused, to challenge the decision through the courts via a judicial review if the applicant feels that the local planning authority has erred in law or process?

[Andrea Leadsom]

I can confirm that the appeals process will remain, but the changes to the Planning Act 2008 mean that the consideration around local involvement and local acceptance will be stronger than in the past. The intention is that local people will have the final say, and any appeal will take that intention into account.

To return to the point made by the hon. Member for Southampton, Test, our review suggests that six months after implementation would be too soon to show any change. Planning applications, as he knows, generally take much longer than that. To report on the impact of deployment rates for onshore wind within such a short period after the legislation comes into effect would place an additional burden on local planning authorities to provide the necessary figures. We have been clear in our policy intent that we wish to reduce future burdens and red tape in relation to decision making for new onshore wind farms. To require local planning authorities to report on consent rates for new onshore windfarms would absolutely go against this, and may even be seen as an effort by the centre to exert influence over the local decision-making process.

We already regularly report on many energy statistics. I would be very happy to provide further information on this to hon. Members. It is not the Government’s intent to add further reporting burdens. On this basis, I hope the hon. Member for Southampton, Test will withdraw the amendment.

Energy BILL [ Lords ] (Fifth sitting)

Debate between Simon Hoare and Andrea Leadsom

Tuesday 2nd February 2016 Public Bill Committees

[Andrea Leadsom]

I am sure, then, that the hon. Gentleman will be delighted about our commitment to further deployment of offshore wind and to the new nuclear programme, both of which are a low-carbon future for the UK. Targets for decarbonisation and new gas, and a big decarbonisation away from coal and into gas, are the bridge to a low-carbon future. I am sure that he will welcome the certainty that we have given investors with that, and the opportunity for UK plc to get more jobs, more growth and more business in the supply chain as a result of our changes in policy.

I will come specifically to the amendments tabled by the hon. Member for Coatbridge, Chryston and Bellshill, whom I thank for his excellent portrayal of the intention behind them. I hope to give him some reassurance on some of those points. My hon. Friend the Member for North Dorset is absolutely right to point out that the survey of the ballot box, which is the best survey, has entirely supported our policy on wind. He raised the question of appeals and judicial reviews. The appeals process is still in place for onshore wind. However, any appeal in England on a decision taken after 18 June will need to take into account the clear statement made by the Secretary of State for Communities and Local Government on 18 June, which sets out the new considerations to be applied to proposals so that local people have the final say on wind farm applications, fulfilling the commitment made in the Conservative election manifesto. Importantly, it also makes it clear that planning permission should be granted only if the development site has the support of the local community and that it can be demonstrated that any planning impacts identified by affected local communities have been fully addressed. My hon. Friend is right to raise that point and I hope he is reassured.

[Simon Hoare]

That is a huge comfort. Will my hon. Friend clarify either now or on Report that the guidance being issued by the Secretary of State for Communities and Local Government in June is of equal status and standing to the guidance in the national planning policy framework?

[Andrea Leadsom]

My hon. Friend may be asking me about a specific legal point, so it may be better if I write to him. I have been clear on the intention, but he is asking me something that I should probably write to him about afterwards.

I am grateful to the hon. Member for Greenwich and Woolwich for his insightful points about NISMs and the associated costs. It is exactly right that a NISM does not mean that the lights are about to go out, and the associated costs are actually relatively small. As we have said all along, energy security is our top priority and we are not prepared to risk it in anything that we do. He also rightly points out that we are trying to decarbonise at the lowest cost and that we totally support renewables. As many hon. Friends have already pointed out, 98% of solar has been deployed since 2010. In 2015, the UK increased its investment in renewables by 25% compared with 2014. At the same time, EU investment decreased by 30%. This Government have shown a strong commitment to renewables deployment. I hope that hon. Members are reassured by that.

Turning to the amendments to new clauses 2 and 3 and new clause 15, I remind hon. Members the Government have listened carefully to the views of industry and are committed to deliver their manifesto commitment. The amendments have a range of effects, predominately in relation to the eligibility criteria for the grace period conditions set out in new clause 2. I will also cover amendment (a) to new clause 3, which relates to Northern Ireland, and new clause 15, which is specific to Scotland. I will address each of the key proposals in turn.

Amendments (a) and (b) to new clause 2 relate to changing the eligibility date or moving to planning application. The amendments suggest that the key eligibility criteria start date be either pushed back to a later date or moved entirely to include those projects with a submitted planning application as at 18 June that had not yet achieved consent. Either of those actions would have a significant impact on the number of projects that would be eligible for the approved development criteria set out in new clause 2 and therefore on overall deployment figures. I am afraid that to respond adequately to the proposals, and specifically the point on changing the grace period eligibility start date or consent criteria, I must first return to the core principles behind the early closure and the grace period conditions.

As I have said, if one considers those onshore wind projects that already have formal planning consent, there is enough to contribute to what is needed to meet our ambition of 30% electricity from renewables by 2020. The Government have made a commitment to manage costs under the levy control framework, and specifically in relation to this well-established technology. The policy intent is to close the renewables obligation to onshore wind, and the clause, as drafted, sets out clearly that the renewables obligation is closed to new onshore wind farms in Great Britain from 31 March 2016, which is necessary to manage the risk of over-deployment. Furthermore, the grace period set out in new clause 2, called the “approved development condition”, was drawn up specifically to protect investor confidence.

Even in its most early design, as set out in the announcement by my right hon. Friend the Secretary of State for Energy and Climate Change on 18 June, the grace period drew a clear bright line for developers while protecting investor confidence and that of the wider onshore wind industry. That approach has underpinned our engagement with industry and wider onshore wind stakeholders. We have been told that the industry ultimately supports our approach. We have also heard anecdotally that some projects that did not meet the grace period criteria have already fallen away, so to change the goalposts at such a late point would be fundamentally unfair to developers who may have chosen not to continue their projects in the light of our original announcement.

Navitus Bay Wind Farm

Debate between Simon Hoare and Andrea Leadsom

Monday 15th June 2015 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

It is a great pleasure to see you in the Chair, Madam Deputy Speaker.

I congratulate my hon. Friend the Member for South Dorset (Richard Drax) on securing the debate. I know that this matter is of great interest to his constituents, and that he has been assiduous in pursuing opportunities to discuss the proposed wind farm in the House on their behalf. I also know that the matter is of great interest to the constituents of my hon. Friends the Members for Poole (Mr Syms), for Christchurch (Mr Chope), for Bournemouth West (Conor Burns), for Bournemouth East (Mr Ellwood), for Mid Dorset and North Poole (Michael Tomlinson), and for North Dorset (Simon Hoare). Along with my hon. Friend the Member for South Dorset, they are long-standing advocates in this matter, and have been diligent in representing the views of their constituents. They should all be commended for their efforts.

As Members will appreciate, I am relatively new to the energy portfolio, but my short time in the Department has reinforced my awareness of the huge importance that the energy sector has, and will continue to have, to the country’s economy. I am also very aware of the importance to local communities of proper consideration of the potential local impacts of energy projects.

My right hon. Friend the Secretary of State has set out the key aims of her Department: keeping the lights on, powering the economy, and keeping bills low for families and businesses. The achievement of those aims will require a robust energy strategy, and will, in turn, depend on a broad energy mix for electricity generation, including new nuclear, gas, carbon capture and storage, renewables, and other relevant technologies. We will approach the United Nations climate change conference in Paris with both ambition and pragmatism. I know that energy infrastructure projects of all sorts can have real impacts on local communities, but such projects can also bring real benefits. Finding the right balance between impacts and benefits is a key issue for the Department when it makes its decisions.

As was pointed out by my hon. Friend the Member for Bournemouth West, I cannot comment on the specific merits or otherwise of the Navitus Bay proposal this evening, as doing so could be considered prejudicial to the planning process.

As my hon. Friends will know, the Planning Inspectorate completed its examination of the development consent application for the proposed wind farm, and its associated onshore and offshore infrastructure, in March this year. During a debate that took place in November 2013, before the Navitus Bay application was submitted to the Planning Inspectorate, my right hon. Friend the Member for Sevenoaks (Michael Fallon), who was Energy Minister at the time, encouraged individuals and organisations with an interest in the proposal to engage with any public consultation that was launched. I know that a number of the Members who are present tonight noted that encouragement, and were among the many hundreds, if not thousands, of people who made representations to the Planning Inspectorate during the examination of the Navitus Bay application.

Prior to examining the application, the Planning Inspectorate indicated that it would cover a broad range of topics it considered to be of importance in assessing the potential impacts of the proposed wind farm. The topics on which views were to be sought included biodiversity, fishing, navigational safety, onshore and offshore heritage—including the Jurassic coast world heritage site—and visual and socioeconomic impacts.

The Planning Inspectorate’s report was submitted to the Secretary of State on 11 June along with its recommendation on whether consent should be granted or refused. It will now be for the Secretary of State to consider her decision in the light of that report and all relevant information.

[Simon Hoare]

Can my hon. Friend give any indication of the Secretary of State’s timeframe for coming to a decision on the report?

[Andrea Leadsom]

I was just coming to that. My very next comment is that it is now for the Secretary of State to consider her decision and she must announce it no later than 11 September 2015, to meet the statutory requirements for planning Act cases. My hon. Friend will forgive me for not being more precise, but he will appreciate that we have only had that report for a couple of days

In taking decisions on planning applications, it is important that all parties are given a fair crack of the whip and that issues are analysed on their merits with an open mind. The consideration of all such applications has to be robust and thorough—this is a fairness point for all interested parties and the applicant.

Large energy infrastructure projects inevitably attract considerable interest from people who may be directly affected by the proposals and also from people who have views on energy projects in a more generic way.