19:36 Richard Drax (South Dorset) (Con)

The project is a 50:50 joint venture between two foreign firms—the Dutch energy company Eneco and the French utility giant EDF. It forms part of round 3 of the Department of Energy and Climate Change’s programme of offshore development, which is designed to generate 33 GW of energy by 2020. Working at full capacity, the wind farm will generate enough electricity for about 800,000 homes. It will create jobs and foster engineering and marine-based skills, and it forms part of a regeneration agenda for some of the most run-down areas on the south coast. Put like that, and in the context of the Government’s enthusiasm for renewable energy, it seems almost irresistible.

Importantly, the proximity of this wind farm to our shoreline totally contradicts the Government’s own guidelines. The Department of Energy and Climate Change suggests that such developments should be more than 23 km from the coast. Unfortunately, the majority of this project is inside that limit. Indeed, the closest point is a mere 13 km away. Interestingly, there was, and presumably still is, the possibility of locating the turbines further out to sea. Originally, the Crown Estate earmarked a far larger area for the wind farm. Inevitably, the site chosen by Eneco and its partners is the closest to shore in depths of between 20 and 50 metres, which is clearly intended to reduce the cost. That would indicate, rather worryingly, that whatever the result of the public consultations there is little room for manoeuvre. The truth is that Navitus Bay will be too big and too close.

The Department of Energy and Climate Change has confirmed that Britain is still dedicated to producing 15% of the country’s energy from renewables by 2020, yet we know that wind energy generation has proved intermittent and unreliable. At peak output, wind farms average only a third of their proposed capacity, so wind energy has to be supplemented by conventional power stations or nuclear energy—not the stuff of green dreams—which are expensive to build and neither is renewable, but they will keep the lights on. Connecting Navitus Bay to the grid would be far costlier than anyone anticipated. The electricity networks’ strategy group reported this year on what it rather coyly describes as “regional connection issues”. Put simply, our networks cannot cope with carrying the extra capacity. The ENSG estimates that £450 million will need to be spent on “system reinforcement” in the south-west, which includes the proposed Navitus Bay development, before any electricity flows.

I fear, as with recent onshore wind farm planning appeals, that we may find inspectors citing renewable energy targets as more important than planning considerations. I sincerely hope that the national planning policy framework amendments suggested by my hon. Friend the Member for Daventry and by other colleagues in the House—in which we recommend that renewable energy targets should not be used by developers as a reason to override the unsuitability of specific locations, and that the wishes of local people should still be considered paramount—will be adopted in the case of offshore wind farm applications as well.

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19:48 Conor Burns (Bournemouth West) (Con)

“How far do you agree with the following statement?” ‘People have a ‘not in my back yard’ attitude to wind parks’…. How far do you agree with the following statement? ‘I am happy to live close to an offshore wind park if it helps to combat climate change’…How many average households’ energy consumption do you think an offshore wind park can produce in one year?”

I close with a simple point, one of the most important that my hon. Friend the Member for South Dorset made. I would love the Minister to give us a firm and detailed reply. It is about proximity to the shore. Eneco’s preferred site is 7 nautical miles from the coast, but the Department of Energy and Climate Change offshore energy assessment 2 says that new offshore wind farm generation capacity

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19:54 The Minister of State, Department of Energy and Climate Change (Charles Hendry)

I hope that my hon. Friends accept that all of us as Government Members agree that the way forward for our energy policy has to be secure, affordable and low carbon. That means having a mix of new nuclear, carbon capture to support coal and gas into the future, and renewable sources. We need to combine that with energy efficiency, which is the cheapest way of delivering energy security. Renewable energy, and offshore wind in particular, is set to be a major part of our energy future. Wind is a low-carbon energy source. It is also a domestic source of energy supply, which means that it will play a role in our energy security because we do not have to rely on imported fuels in order to deliver it.

We understand the local community’s concerns about the proposed development. While we are committed to a rapid increase in offshore wind, we need to ensure that wind farms are located in the right places, and that is the purpose of the planning process. We recognise the need to make balanced decisions on the appropriate location of offshore wind farms. We also recognise that we must take account of the views of local residents, and I give that absolute assurance to my hon. Friend. A proposal must take account of the interests of other users of the sea and of the impact on the environment. All renewable energy developments take place within a fair and transparent planning process that allows all relevant stakeholders to put forward their views on the likely impact of a proposal.

My hon. Friend the Member for South Dorset raised the potential impact of offshore wind farms on the environment. That was a core part of his speech. The impacts on other sea users and the environment have to be assessed at a strategic level as part of the Department’s offshore energy strategic environmental assessment, and are assessed again at the application stage for each individual project in the environmental impact assessment. The most recent strategic environmental assessment report, which we published in 2011, concluded that at a strategic level, there were no overriding environmental considerations to prevent the achievement of up to 33 GW of offshore wind in the renewable energy zone and the English and Welsh territorial waters by 2020.

We should be in no doubt, however, that the level of ambition is linked directly to the costs involved. We are working with the industry to ensure that the costs of offshore wind can be brought down significantly. At the moment, the cost is about £140 per MWh; we need to see that brought down to £100 per MWh. The industry ambition of 18 GW by 2020 is absolutely dependent on progress being made in that direction. We understand that that has to happen in a way that works for consumers and the industry as investors. It is worth observing that, last year, there was pressure to push up bills by more than £100 because the wholesale price of gas rose by about 40%. The renewable energy element of a bill is less than £20, or less than 3%. We have to look at these issues in the round.

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