Renewable Energy Projects

Lord Barker of Battle Excerpts

Wednesday 14th July 2010 Westminster Hall

[The Minister of State, Department of Energy and Climate Change (Gregory Barker)]

I shall start by congratulating the hon. Member for Barrow and Furness (John Woodcock) on an excellent speech. Although he is a new Member, I know that he is not new to Westminster and the processes of government. He brought the experiences that he gained working behind the scenes to the fore with great aplomb, and I found his contribution helpful and useful.

It is encouraging to see that several new Members are present, even if they have participated only by way of interventions. I hope that the positive dialogue engendered in Westminster Hall debates can continue. We do not claim to have the monopoly on wisdom; this is a new agenda. I am a new Minister and I am sure only that we need to be ambitious and radical, and that pottering along under the status quo is not an option. Together with my officials, I am looking at a range of options. If other hon. Members, regardless of whether they are part of the coalition Government or in opposition, come forward with positive contributions—particularly examples of successes in their own constituencies, such as Baywind—we should look at those contributions.

I am pleased to tell the hon. Gentleman that my officials will shortly be meeting Energy4All to discuss some ideas. Those ideas will incorporate five different ownership models: the community co-operative model, which enables 100% ownership of an entire project; the shared ownership model, where a co-operative owns one or more of the turbines on a wind farm, with the remainder being owned by a landowner, private developer or a community trust; the royalty instrument model, which is where a developer builds a wind farm in a region and the community purchases a stake in the future revenue of the project through a co-operative; the regional co-operative model, where finance is raised through a national or regional energy co-operative covering a wide geographic area and a range of different projects; and the loan model, where the community project may approach an existing energy co-operative and obtain a simple loan to get a new project off the ground. Those are some of the innovative ideas that are springing up, and we need more of them.

I have taken a personal interest in the decentralised energy agenda since 2005 when I first started shadowing the environment brief. It became clear that there were many advantages to decentralised energy, not only in the way that it can contribute to the decarbonising of our energy supply, but also in the security of our domestic energy supply and the sense of ownership and empowerment that it can bring to local communities and consumers. Politically, there is a huge power in the broadest sense of the word—pardon the pun—in that agenda. It is one of the few things on the energy agenda that engages local people in a way that they can understand and in which they can participate.

When the hon. Gentleman introduced this debate, he was right to say that there were problems and that, historically, there has been resistance to renewable energy projects in all of our constituencies. Some of that resistance was well based, but often it was based on misconceptions. It is difficult to blame local communities for resisting renewable energy because often they are asked to have something imposed on them that spoils their view or the amenity of the local land, and brings them no benefit whatsoever. If we are to see an increase in the number of such installations, we need a more equitable settlement. We need a greater sense of community participation both in decisions about where the installations are to be sited, and in the returns that flow from them. There are potentially remunerative streams of profit to be gained under those arrangements, and it is right for the communities that host renewable energy sources to benefit in that way.

Our coalition programme is clear. We plan to help communities become more self-sufficient in the way that they use heat and power. The programme also makes clear our plans to encourage more community ownership of renewable energy. Vision, localism and decentralised energy all empower communities.

We have a range of technologies. We have spoken about wind, particularly onshore wind, but a host of other exciting technologies such as micro-hydro power are available, and we should do more to advance them. There is also biomass, solar power and combined heat and power. Ultimately, I would like to see the notion of local energy economies widely accepted. People have got used to the notion of a local food economy. We have seen local farmers markets spring up, and links between local schools and community projects, and local food producers, farmers and retailers. We must do more to encourage the notion of local energy economies, where people see a closer link between the energy that local communities consume, and the way it is produced.

In my constituency, I have encouraged a greater link between farmers who have woodland that is not in productive use, and a local school that is putting in a woodchip CHP boiler. A local farmer will bring woodland back into productive use so as to supply that boiler on a long-term contract. Coppicing is better for biodiversity and flora and fauna.

[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.