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Energy Bill [Lords]

I am grateful to the hon. Gentleman for making that point, but I think that our grace periods are absolutely clear, and that developers who have sought clarity have been able to get it from the words in our debates and in the Bill.

Investor confidence seems to be the main reason used to support further changes to the grace periods, as proposed in the amendments from the hon. Member for Coatbridge, Chryston and Bellshill and in many of the other amendments that have been tabled. The Energy and Climate Change Committee’s inquiry into investor confidence concluded earlier this year. I want to reflect on one point in particular that was raised during the Committee’s very thorough evidence sessions. The evidence given by Peter Dickson from Glenmont Partners suggested that

“investments continue to attract capital in the UK—for example in offshore wind”.

Far from Government policies putting investors off investing in renewables in the UK, in fact it seems that significant investment is still coming forward.

I thank my hon. Friend the Member for Daventry, my hon. Friends the Members for Peterborough (Mr Jackson) and for South Cambridgeshire (Heidi Allen), and my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) for raising with me the important issues around visual, amenity and noise impacts from onshore wind farms and the impact that they can have at local level. I can confirm that our manifesto commitment specifically called for a halt to the spread of onshore wind farms and a change in the law so that local people have the final say on wind farm applications. We are making sure that people’s concerns are addressed. Specifically, the Government are considering measures related to noise and amplitude modulation. We touched on this matter in Committee. As I said then, we are determined to address this and find a solution to the problem. This is possibly taking longer than my hon. Friends would like, but we are taking independent advice and will consider how best to act in the light of that advice, which I expect to receive shortly. At this stage, I cannot comment further, but I hope that my hon. Friend the Member for Daventry will continue to be patient with me in the knowledge that we are looking at this very closely.

On new clause 2, tabled by the hon. Member for Aberdeen South (Callum McCaig), it is imperative that the early closure applies consistently across Great Britain in order to protect consumers from the risk of over-deployment beyond what has been agreed is affordable under the levy control framework. The new clause would allow Scottish Ministers to provide for further deployment of onshore wind in Scotland under the renewables obligation at a cost to consumers right across Great Britain. In fact, our estimates show that in 2015-16, £520 million, or approximately 60%, of RO support will already go towards funding Scottish onshore wind farms, even though only about 10% of UK bill payers are in Scotland.

The hon. Gentleman tabled the new clause in Committee at the beginning of February, and at that time we discussed the question of Scotland being willing to take responsibility for funding its own renewables obligation. During the debate, the hon. Member for Coatbridge, Chryston and Bellshill expressly responded to that suggestion:

“The short answer to that is no.”––[Official Report, Energy Public Bill Committee, 2 February 2016; c. 133.]

I cannot imagine that his position has changed in the brief period of time since that debate.

5.30 pm

Amendments 8 and 23 relate to projects for which a local planning committee may have indicated that it was minded to grant planning consent, but which did not have formal planning permission as of 18 June last year. That would include projects that just had an indication that they would receive planning consent subject to a section 106 or section 75 agreement being entered into, or projects for which the local planning committee was minded to approve a planning application before 18 June, but for which planning permission was not formally issued until after that date.

The amendments would lead to additional deployment and increased spend under the levy control framework, further blurring the clear, bright line that the Government have set out for projects wishing to accredit under the RO after 31 March this year. To be clear, those projects did not have formal planning permission as at 18 June last year, and therefore they would not meet the grace period criteria.

About this proceeding contribution

Reference

607 cc687-9 

Session

2015-16

Chamber / Committee

House of Commons chamber
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