National Policy Statements (Energy) Debate

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Baroness Primarolo

Main Page: Baroness Primarolo (Labour - Life peer)

National Policy Statements (Energy)

Baroness Primarolo Excerpts
Monday 18th July 2011

(12 years, 10 months ago)

Commons Chamber
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[Relevant documents: The Third Report of the Energy and Climate Change Committee, Session 2010-12, on The revised draft National Policy Statements on energy, HC 648, and the Government response of June 2011.]
Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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I suggest that, for the convenience of the House, motions 1 to 6 should be debated together, and should be voted on at the end of the proceedings.

Charles Hendry Portrait The Minister of State, Department of Energy and Climate Change (Charles Hendry)
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I beg to move motion 1,

That this House takes note of and approves the Overarching National Policy Statement for Energy (EN-1), which was laid before this House on 23 June.

Baroness Primarolo Portrait Madam Deputy Speaker
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With this we shall consider the following:

Amendment (e) to motion 1, leave out from ‘of’ to end and add

‘the Overarching National Policy Statement for Energy (EN-1), which was laid before this House on 23 June, but declines to approve it until it is amended to insert in section 5.14.7 a direction to the Infrastructure Planning Commission to consider the impact on the waste hierarchy of energy-from-waste generating stations of over 50MW.’.

Motion 2—National Policy Statements (Fossil Fuel Electricity Generating Infrastructure)—

That this House takes note of and approves the National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2), which was laid before this House on 23 June.

Amendment (b) to motion 2, leave out from ‘of’ to end and add

‘the National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2), which was laid before this House on 23 June, but declines to approve it until it is amended to include energy-from-waste generating stations to the list of covered technologies in section 1.8.1.’.

Motion 3—National Policy Statements (Renewable Energy Infrastructure)

That this House takes note of and approves the National Policy Statement for Renewable Energy Infrastructure (EN-3), which was laid before this House on 23 June.

Amendment (a) to motion 3, leave out from ‘of’ to end and add

‘the National Policy Statement for Renewable Energy Infrastructure (EN-3), which was laid before this House on 23 June, but declines to approve it until it is amended to omit energy-from-waste plants’.

Motion 4—National Policy Statements (Gas Supply Infrastructure And Gas And Oil Pipelines)

That this House takes note of and approves the National Policy Statement for Gas Supply Infrastructure and Gas and Oil Pipelines (EN-4), which was laid before this House on 23 June.

Motion 5—National Policy Statements (Electricity Networks Infrastructure)

That this House takes note of and approves the National Policy Statement for Electricity Networks Infrastructure (EN-5), which was laid before this House on 23 June.

Motion 6—National Policy Statements (Nuclear Power Generation)

That this House takes note of and approves the National Policy Statement for Nuclear Power Generation (EN-6), which was laid before this House on 23 June.

Charles Hendry Portrait Charles Hendry
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This debate is intended to fulfil our commitment to parliamentary approval of the national policy statements. The motion constitutes a further important milestone in the Government’s programme to secure affordable low carbon energy which will make the UK a truly attractive market for investors in energy infrastructure.

Let me briefly explain the background to the national policy statements and the purpose of each one. I shall, of course, be happy to take interventions as I go through them. Members may find it convenient to concentrate on the subjects individually, but I am mindful of the number who wish to speak in the debate.

The national policy statements do not contain new energy policy or change the standard for consenting projects, but they set out clearly and for the first time the national policy that must be considered before the granting of consent to infrastructure projects that are examined by the Infrastructure Planning Commission and, when the Localism Bill has been enacted, by its successor. The policy statements are critical to the new fast-track planning system that will encourage developers to embark on energy projects without facing unnecessary hold-ups. It will also ensure that local people can have their say about how their communities develop, and that decisions are made in an accountable way by elected Ministers.

We urgently need new electricity-generating infrastructure to replace our ageing power stations. If we are to meet our ambitious carbon targets, we must electrify much of our industry, heating and transport sectors. That could mean doubling our electricity generation, with about 60 GW of new capacity coming on line by 2025. Over the next 10 years, a quarter of our generating capacity will close as old or more polluting plants close. As the reserve margin of spare generating capacity falls, the risk of interruptions to our energy supply rises.

More than half the new capacity that we urgently need should be met with renewable energy, and a significant proportion of the remaining capacity should be met with other low-carbon technologies. That is a real challenge. Business and industry tell us that investment in infrastructure will help them to create growth and jobs. By setting out the need for new energy infrastructure, including a mixed portfolio of electricity generation, the national policy statements will unlock that investment and provide market certainty.

As Members will know, having considered the Energy and Climate Change Committee’s report and responses to the first public consultation in 2010, we made changes to the draft national policy statements and accompanying documents. Given the nature of the changes that we made, we decided to consult on the revised draft national policy statements between October 2010 and January 2011. Alongside our public consultation was parliamentary scrutiny of the revised draft statements. That work was undertaken by the Energy and Climate Change Committee, which considered the changes from the drafts that were consulted on by the previous Administration. The Committee then published a report, setting out 18 recommendations on the revised drafts.

We intend the national policy statements to be approved if that is the will of Parliament. My right hon. Friend the Secretary of State will designate them as quickly as is reasonably practicable. It has been suggested that designation should have been delayed until after we had reviewed them in the light of the electricity market reform White Paper which was published last week, but we do not think that delay is either necessary or desirable, as the policies have been developed in parallel to ensure they are consistent.

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Mike Weatherley Portrait Mike Weatherley
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We have been talking about waste disposal, particularly in the nuclear industry. The statement refers to underground storage, which is unproven but technically feasible. Does the Minister agree that it is pointless going ahead with a nuclear programme unless we have somewhere to dispose of the waste?

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. Before the Minister rises to his feet, this would be a good point for me to inform the House that this debate is due to end at 9 o’clock, there have to be wind-ups at the end and 18 Members in the Chamber have already indicated that they wish to take part. There is going to be a time limit and, at the moment, it is getting shorter and shorter. So those who wish to speak might want to hold back on their interventions.

Charles Hendry Portrait Charles Hendry
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Thank you for your strictures, Madam Deputy Speaker. I will be very observant of them in considering which interventions to take.

My hon. Friend does make an important point. We are working with communities that have volunteered to take forward some of this work to see whether there are appropriate locations for a waste disposal facility, and we are committed to making this happen. We have expressed an ambition that we should have such a facility open 10 years earlier than previously planned—by 2029 rather than at the end of the 2030s. I hope that that will show to him and others our commitment in this area.

On the renewables national policy statement, we do not specify areas in which to locate wind farms, nor have we placed limits on generating capacity in each area, although, as in all cases under the Planning Act 2008, it will be open to the Infrastructure Planning Commission—or, through the Localism Bill, to Ministers—to refuse an application for consent if it considers that the adverse impacts outweigh the benefits. To complement the electricity generation national policy statements, policy statement EN-4 addresses requirements for gas and oil infrastructure and EN-5 addresses those for electricity networks. Changes in the pattern of supply and demand, and shifts in technology mean that we will need more of both those types of infrastructure in the coming decades.

Electricity transmission networks most familiarly mean overhead lines supported on pylons, and it is only that type of connection that requires Planning Act consent. Considerable concern has been expressed about the impact on landscapes of an increasing number of networks. The overarching NPS and the electricity networks NPS make it clear that developers should consider undergrounding or subsea cables for transmission networks. The electricity networks NPS also explains that although it would be preferable for grid connections to be applied for at the same time as the generating infrastructure it is associated with, there are circumstances where this may not be economically sensible. We have also stated that the Holford rules should be followed when developers are planning the routes of proposed overhead lines. That actually strengthens the policy, because before this NPS the use of the Holford rules by developers was voluntary.

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None Portrait Several hon. Members
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rose

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. We have approximately 55 minutes left to take 18 speakers. I shall set a time limit from now of five minutes on all Back-Bench speakers. That means that not everybody will get in if every Member takes five minutes. Out of courtesy and consideration for fellow Back-Bench Members, Members might like to curtail their speeches. They can do the maths as well as I can.

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Dai Havard Portrait Mr Dai Havard (Merthyr Tydfil and Rhymney) (Lab)
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I have tabled three amendments to the national policy statements motions—amendment (e) to motion 1, amendment (b) to motion 2, and amendment (a) to motion 3. I have one minute in which to speak to each one, so I will try to get the end of my speech in first. I say to the Minister that, on the arguments about delay, and if he accepts any changes, I understand the need for clarity, which is partly what I am arguing for, and that the industry needs some sort of certainty on the plan. A supposed delay in the national policy statements would not mean that applications could not be made, proceed and be heard. I know that because an application is currently being heard for a huge incinerator in my constituency that would take 750,000 tonnes of non-recycled waste every year and generate 65 MW of electricity.

That perversity has come about by default, in the sense that the Minister, having decided that waste should be part of the IPC process, has set a minimum requirement of 50 MW, which has almost invited the industry to come forward with applications for huge developments. The industry has decided that it will have various sub-UK regional units, and has used this opportunity to do exactly that. Nothing has been said about the proximity principle.

Local people are trying to decide how best to deal with their own waste locally. Part of the solution might be smaller incineration, and I do not contest that. I contest the scale of the current proposals, which is why I have tabled the amendments. As an hon. Member said earlier, the argument for moving this material into the guidance on fossil fuel is about the fact that it produces a huge amount of carbon. I understand the argument about why methane is better than carbon because it can be captured and used. In fact, the incinerator proposed in my constituency, basically as part of a current open-cast mine, is next to a huge landfill site. So there is a triple alliance. They are capturing the methane from the landfill site and selling it, so to me that is something of a false analysis.

The question is whether such activities are green. In the context of the proximity principle, I fail to understand how it is green to drag waste from one end of the country to another without adding carbon into the calculation. I also fail to understand how it could be carbon-neutral to import waste, because my great fear is that the way this guidance is structured means that it will not be about waste policy, but about opportunities for people to speculate on energy generation, ignorant of a waste policy. The receiving stations for the waste will be at ports, to come by rail and road to be burned. The sustainability of these mechanisms is questionable. If we are to move to zero waste the amount of potential fuel supply will reduce—and rightly so—so how sustainable will they be over 25, 35 and 40 years? They might be sustainable if we were to burn the waste generated by the Camorra in Naples and import it into Newport to do that, but heaven forfend that such a thing should take place. Well, not now.

The waste hierarchy is not simply about local questions of determination. In the longer term it could go much further, so I invite the Minister to choose, of all the amendments I have tabled, to put this method into the IPC’s consideration process. If it is not possible to do it this way, will he please explain how it should be done, because at the moment we have a series of factors that it is apparently not to examine. It seems that the list of what not to examine, including connection and the grid, is more important than the list of things it is to examine. That means that it cannot determine any particular decision in the round, in its proper context—certainly not in relation to energy supply under the waste hierarchy.

I say to the Minister that there are security problems here. If we choose to have a smaller number of larger units, that is not secure. We should be looking for a more distributed process. That is what I thought the Assembly in Cardiff was trying to think about. This trumps anything that the Assembly would want to do. It is a policy that applies across England and Wales, yet it denies the Welsh Assembly Government the opportunity to make a real decision. That is why I proposed to take it out of the processes. That would not have stopped wind energy and all the other things, but it would have given them the opportunity to determine that, so I ask the Minister—with very little time now to speak to the amendments properly—to take account—

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. I call Martin Horwood.