Onshore Wind Subsidies Debate

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Onshore Wind Subsidies

Stewart Hosie Excerpts
Monday 22nd June 2015

(9 years, 6 months ago)

Commons Chamber
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Amber Rudd Portrait Amber Rudd
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I thank my hon. and learned Friend for his question. I know that he has felt, representing his community, that there has been too much deployment in his area. I recognise the support that he has provided in helping us to develop our policy.

Each developer will need to contact the Department for us to give a complete answer, and we will work with developers to ensure that it is clear which projects are within the provisions and which are not. At some stage —my hon. and learned Friend will have to give me a little time—that will be published on the website.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I thank the Secretary of State for her statement and for early sight of it.

The Secretary of State said that, six weeks into this Government’s time in office, they were acting on this policy, and of course they are, but that does not make it right. She said that we were reaching the limits of what is affordable. We agree—we have reached the limits of what is affordable in the strike price and subsidy for nuclear. She said that we have reached the limits of what the public are prepared to accept. I think the public have already reached the limit on the failure to decarbonise and tackle climate change.

This decision is simply wrong, and the Secretary of State’s answer to the hon. and learned Member for Sleaford and North Hykeham (Stephen Phillips) was instructive. The Government are prepared to publish all the projects that are pulled; I hope the Secretary of State will also publish all the jobs that are lost and the investment forgone because of the decision. [Interruption.] I hear a lot of chuntering. I think we are getting to the truth now—Government Members simply do not like renewables. They would rather see the costs of nuclear decommissioning passed on to future generations.

We are concerned mainly about the damage that the decision will do. The announcement places at risk a huge investment pipeline conceived in good faith by developers under the rules previously in place. Is the Secretary of State aware that the decision has a disproportionate impact on Scotland, and that it puts investment at risk? She appears to be aware that around 70% of the onshore wind projects in the current planning system are in Scotland. On that basis, is she aware of what Niall Stuart, the chief executive of Scottish Renewables, has said? He said:

“Cutting support for onshore wind would be bad for jobs, bad for investment and would only hinder Scotland and the UK’s efforts to meet binding climate change targets.”

Is the Secretary of State not concerned at all that, currently, £3 billion-worth of onshore wind projects in the pipeline in Scotland are at risk with so sudden a closing of the renewables obligation, that that will do incredible damage, and that it will put at risk investor confidence not simply in offshore wind, but in the wider UK energy sector?

I agree with the Secretary of State that the subsidy cost of renewables must decrease, so that both renewables and climate targets are achieved at the lowest cost and so that consumers are protected, but is she not concerned about the danger of a headlong rush to scrap subsidies for onshore wind, the cheapest large-scale renewable technology? Has she ignored comments from the industry, not least from Keith Anderson, the chief of ScottishPower Renewables? He said:

“Onshore wind is clearly still the most cost effective large scale way of deploying renewable technology in the UK. Economically, you would therefore question, why in God’s name would you want to bring that to a premature halt?”

John Bercow Portrait Mr Speaker
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Order. I feel confident that the hon. Gentleman is in his last sentence, and much nearer the end of it than the beginning.

Stewart Hosie Portrait Stewart Hosie
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I am indeed, Mr Speaker.

The Secretary of State said last week that up to 5.2 GW of onshore wind capacity would be eligible for a grace period. We found out later that that figure was only 2.9 GW. Today, she said that 7.1% would no longer be eligible for subsidy. Why did she not come clean last week with the proper figures?

Amber Rudd Portrait Amber Rudd
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I gently say to the hon. Gentleman that I believe he has failed to accept any of the points I have made about the Government’s commitment to addressing climate change, our commitment to keeping the bills down and our commitment to delivering a variety of renewable energy sources. It is not just about onshore wind.

The hon. Gentleman also failed to acknowledge that, in some environments, there is too much pressure on communities in respect of onshore wind. I gently quote to him Fergus Ewing, the Minister for Business, Energy and Tourism. In 2007, he said:

“Wind farms have…a very heavy environmental footprint”

and

“also…release…substantial quantities of methane from peat landscapes…many other forms of renewable energy are the future—not unconstrained wind farms”.

I agree with him on that. We must recognise that, sometimes, when Members of Parliament choose to fight for their community, they take a different view from that of the national party. I am here representing the views of Members of Parliament as well as the national party. We believe that our policy addresses communities and keeps bills down.