16:38 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 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.

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.

I agree with all the points that my hon. Friend has made. Does he agree that planning is at the centre of some of the problems relating to the tensions between local authorities and co-operative groups in respect of renewable energy projects? One way to redress the balance is to encourage more local authorities to regard community ownership positively in terms of giving planning consent, allowing them to support such a co-operative movement without crowding it out.

My hon. Friend is right. I need no encouragement to agree with anyone who suggests a visit to my constituency of Barrow and Furness, which is always a fantastic idea, and particularly the Baywind energy project, which prompted me to call for this debate. I am sure the Minister is aware that Baywind has blazed a trail since the mid-1990s. The Baywind wind turbines in my constituency, which are part of a co-operatively owned energy project, have changed people’s understanding of renewable energy and of the capacity of a local area to have a genuine stake in that form of energy.

My hon. Friend talks about the benefit that communities realise from community renewable projects. I am sure that he is aware that there are good examples of that in Scotland, for example, in Fintry and on the island of Gigha. It has become clear that the lack of available funding is a stumbling block for community renewable developments. Is he aware of the studies being carried out by the Scottish agricultural college on a loan scheme for renewable energy projects, including community ones, which may help get over that initial problem, to develop more community renewable energy projects throughout the country?

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?

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.

Stroud, which the Minister has already visited, is awash with good ideas for renewable energy. I want to focus on micro-hydro schemes, because some obstacles must be removed, including possible objections by the Environment Agency. We must discuss that, and I have mentioned it in the House.

The hon. Gentleman is right to make that point, and to indicate the variety of renewable energy schemes that we must embrace. The issue is not just about onshore wind or offshore wind. The potential for hydropower is enormous in the UK at both micro level and a wider level. I was an adviser in the Department for Business, Innovation and Skills under the previous Government, which kicked off the study into the Severn barrage, but that is a subject for another debate. I will not take interventions on that, but it is crucial.

Community-owned schemes may make a difference because they engender a level of buy-in from the community. Baywind has paid a dividend to local residents who have bought into the scheme since its inception in 1996. As an educational establishment, it accepts regular visits from local schoolchildren and adults, and promotes the cause of renewable energy. The key point for onshore wind is that community ownership of the turbines has allowed the co-operative to avoid the controversy that has often surrounded turbines in other areas of the Cumbrian hills in my patch.

I turn to the planning system. Energy4All is a not-for-profit organisation to facilitate community-owned renewable energy schemes such as Baywind. It may cost communities £150,000 simply to be part of the planning process, and at the moment they cannot be confident of success in navigating through that process. The coalition programme for government states explicitly that the Government

“will encourage community-owned renewable energy schemes where local people benefit from the power produced.”

The Co-operative party has called for creation of a community energy and climate change unit, based on the successful Supporters Direct model, which promotes mutual ownership of football clubs. The core functions of the unit would be to bring together silo working in government. We are all guilty of that when in government; it is not a new phenomenon of the new Government. The unit would be able to give advice on legal structures, financial assistance, business planning and the regulatory framework, but it would not be prescriptive. There are many ways to skin a cat, and I hope that the Minister will recognise that there is a cat to be skinned, and will come up with some suggestions for his preferred method of doing so.

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17:01 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

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.

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?

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.

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.

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