Renewable Energy Projects

Stella Creasy Excerpts

Wednesday 14th July 2010 Westminster Hall

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I am grateful for the opportunity to debate this important issue, and for the support of colleagues who are in attendance. My basic case is that if we in this country are serious about tackling climate change, we have to get serious about increasing the amount of energy and electricity that we consume from renewable sources.

We face a familiar problem, which has been too familiar over recent years: too often, renewable energy projects have failed to get off the ground and to receive planning consent. Local people and local communities have felt disengaged from projects that they thought were being imposed on them and, as a result, far too often we have ended up with inappropriate sites or with projects not getting through the morass of the planning process. We have to find an acceptable way to change the balance, so that we can increase the number of renewables projects that gain consent in an area and get genuine local community buy-in to renewable energy.

I welcome some elements of the new Government’s programme, including the wholesale theft, if I may call it that, of my party’s manifesto pledge to empower local authorities—councils—to generate electricity from renewable sources. The Minister will know better than I do, from his brief experience of coalition Government, that it involves a little bit of give and take, but I had not realised that it would involve taking wholesale from Labour’s programme. But let us face it, after we lost the election we were not in a position to implement that pledge any time soon, so it was good that the Government took it up.

I hope that the Minister will tell us more about the Government’s interesting plans on business rates, with the potential for giving a reward, in effect, to local people who agree to renewable energy projects. We look forward to hearing more about whether the green investment bank will make a real difference and whether it is to be more than just a Budget item included to give the appearance of doing something.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

It is also important for the Minister to set out how the Government envisage resolving any tension that might arise locally between local communities, which have been empowered to advance proposals for renewable energy, particularly through co-operatives, and local authorities that are allowed to bring forward proposals for local energy generation as a source of revenue production.

[John Woodcock]

My hon. Friend has hit on a key point. There has to be a way to manage that tension. I will say more about co-operative energy solutions. A local authority’s laudable objective must not crowd out the only way that we can get to the root of the problem. There can be a huge gulf between our objective to obtain more energy from renewable sources and the inability or unwillingness to agree locally.

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[John Woodcock]

I thank my hon. Friend for making that important point.

My hon. Friends have mentioned practical ideas as to how Government can help support such vital projects, potentially facilitating loans, and so on. Baywind is an example of a local community-owned project succeeding, which happens all too infrequently at the moment. I hope that the Government will consider seriously their lack of co-ordination in a difficult and complicated field.

[Stella Creasy]

Does my hon. Friend agree that we could learn some interesting lessons from Denmark, and how it has used the tax system to encourage community ownership of renewable energy projects and incentives, and to encourage people to participate in and support them at local level?

[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.

--- Later in debate ---

[Stella Creasy]

I appreciate what the Minister is saying. Does he share my sadness at the decision to cancel the wind turbine as part of the Olympics park in the borough of Waltham Forest? That could have been the legacy of a local renewable energy co-operative in Waltham Forest. Will he commit to working with me to look at alternatives such as biomass and photovoltaic cells, and see whether they could be the start of such a co-operative project in Waltham Forest?

[Gregory Barker]

I am not familiar with that project or with the reasons behind the cancellation of the wind turbine. However, I would be happy to work with the hon. Lady to try and encourage the uptake of other renewable energy sources. That is absolutely key, and we want the Olympics to be the greenest Olympics ever, just as we want the Government to be the greenest Government ever.

Community ownership is a key part of our localism agenda. In the common themes and principles that bind the coalition together, localism, concern for the environment and action on climate change are three of the most powerful issues that drive our agenda. We are determined to create the right framework for building a low-carbon economy. We realise that we need to make game-changing interventions to increase energy efficiency in local communities. That is why at the heart of the energy Bill that I hope to introduce in the autumn sits the green deal, which will transform homes in all our constituencies. If we are to save consumers money on their energy bills but also make their homes more efficient and reach our carbon reduction goals, we will need game-changing policies such as the green deal, but we also need a game change in our culture and our approach to community ownership.

We are already working on measures to ensure that communities can benefit from renewable energy, taking advantage of incentives provided by feed-in tariffs, but we will go further and encourage more community ownership of renewable energy. The hon. Member for Barrow and Furness made excellent points about the fact that where there is community ownership of energy installations, many of the objections in the planning system will simply fall away. I cannot comment directly, but I do hear the points that he makes about the need for that to be recognised in the planning system itself. There is a virtuous circle here. Part of the reason why there are so many delays to many local projects is that there are so many local objections. If there are fewer local objections, there will be fewer delays. In an ideal world, we would not have to tinker greatly with the planning system, because it would be self-fulfilling, but we are examining ways in which we can work with the planning system to give communities more power to shape the places that they inhabit.

The coalition agreement made clear our intention to publish and present to Parliament a simple and consolidated national planning framework covering all forms of development. That should include local community-owned installations. My Department is working with the Department for Communities and Local Government on extending permitted development rights for both domestic and non-domestic microgeneration technologies.

We are also developing a website, called community energy online, to develop best practice and to support local authorities and community groups in developing their own renewable energy. Often, the greatest spur to that is not just what we can do at Westminster, but clear examples of action being taken in the community, out there in the real world. The more that we can spread that best practice and knowledge, the better.

I have a few more points, which I shall run through quickly in the time remaining. First, I shall say a few words about overturning the ban on local authorities selling electricity. It was nonsense that the Local Government (Miscellaneous Provisions) Act 1976, introduced by a Labour Government, prevented councils from selling electricity from local wind turbines—not that there were many in those days—or from any form of local generation or, indeed, from anaerobic digestion, which we are also keen to promote in the coalition agreement. I hope that by the end of the year, local authorities will be able to sell electricity from renewables, generating revenue to help local services and keep council tax down. That will see local communities truly benefiting from the low-carbon transition. It will allow local authorities to take full advantage of the incentives available through feed-in tariffs to invest in renewable energy in their own buildings. We are also keen for local authorities to work with other partners on community-scale renewable electricity schemes that can be supported by FITs.

At this stage of renewable development, I am not as worried as the hon. Gentleman about crowding out different initiatives, because we are at such an early stage. One of the mechanisms that we see as key to encouraging local community schemes is the retention of business rates. As the coalition programme for government made clear, we will allow communities that host renewable energy projects to keep the additional business rates that they generate. We are working up plans to make that a reality.

Overall, the hon. Gentleman has made a very good start with this debate. We welcome his input and I look forward to continuing the discussion with him.

Question put and agreed to.