Naomi Thompson – Planning and Policy Advisor for FOE said the NPS’s should tie into climate change objectives and carbon budgets. Naomi was concerned that two incinerator proposals had been consented by the IPC without credible carbon capture infrastructure proposals.

A Judicial review to the NPS’s brought forward by Greenpeace/FOE will be heard in the high court next year.

The Westminster Energy, Environment and Transport forum conference: ‘Infrastructure Planning: next steps for the IPC transfer, and the impact of the Localism Bill‘ hosted presentations from the government’s Department of Energy and Climate Change and Sir Michael Pitt from the IPC.

Sir Michael Pitt spoke about the the transfer of responsibility from the IPC to the Planning Inspectorate. He said that the Inspectorate would be making recommendations to the Secretary of State for Energy by April 2012. Pitt emphasised how seriously the IPC take local authority views in relation to local impact assessments but other representatives said that nationally significant infrastructure projects such as nuclear power stations were more likely to get consent under the new regime.

Department for Energy and Climate Change spokesman Giles Scott said:
“since the general election 15 applications for nationally significant infrastructure projects have been consented totalling 8.8 Gigawatts worth £8.1 bn. These applications include CCGT, onshore wind, biomass, coal and nuclear”. Scott said he was “confident that the government can meet the projected 2025 energy requirements set out in the NPS for Energy”.

The report recommends that “if a set of alternative options can be found to meet the EU renewable energy target, then offshore wind ambition in 2020 could be moderated.”

RenewableUK’s Chief Executive, said: “The report is welcome in as much as it recommends increasing the share of renewable energy to 40% by 2030. However, we are not going to get there if we do not stand four-square behind offshore wind in the run up to 2020. An unambitious target could scare off investors just when they have pledged so much commitment in establishing UK factories. This in turn could stymie delivery of targets and prevent the creation of up to 50,000 jobs in offshore wind over the next decade.”

The industry trade body believes that offshore wind energy costs are likely to come down whilst assumptions by the committee about the costs of nuclear are optimistic.

Another recent report by Price Waterhouse Cooper says that wind industry representatives believe offshore wind energy will not require subsidies within 15 years.

Huhne says the reforms are necessary to deal with increased electricity demand, ageing power stations and the need for low carbon energy sources in order to meet climate change challenges. The changes are likely to mean new feed in tariffs for larger scale low carbon technologies.

The government believes that all low carbon electricity generation needs support to capture its benefits to our climate and to ensure security of supply. The department of energy and climate change want the true costs of unabated fossil fuels and the benefits of low carbon electricity to be captured in policy.

The reforms aim to provide investor confidence for nuclear and renewable energy which share the characteristics of large upfront costs and low ongoing running costs. These characteristics have historically been less attractive than the lower up front costs of gas. Long term contracts by way of feed in tariffs for low carbon generation are expected to further encourage green energy investment.

Energy secretary Huhne said:

“These reforms lay the foundations for a sustainable economy, bringing billions in investment in the UK through greater certainty, safeguarding jobs up and down the supply chain, and giving the UK real competitive advantage in advanced energy technologies.

“Crucially, our reforms will also make sure there is enough spare supply to keep the lights on reliably. They will protect the rules for existing investments. And, over the long term, they will achieve more, while resulting in bills lower than they would otherwise be.”

The reforms are at the consultation stage and the government says it is interested in views on whether the preferred package under the electricity reform is the right one. It is anticipated that reforms will be in place by 2013, but that renewables investors would be able to build under the renewables obligation until 2017.

The original draft statements were released for consultation by the Labour government late last year but have now been revisited and changed by the current government.  The 6 changed energy documents are now being consulted on with the deadline for comments 24th January 2011.

Subject to the consultation and Parliamentary scrutiny, the Government intends to approve the energy national policy statements in Spring 2011.  These statements would then be used by the Infrastructure Planning Commission when it makes decisions on applications for nationally significant energy infrastructure proposals.

The new statements are generally supportive of a diversified energy base.  Support for the consideration of specific nuclear sites is set out in the nuclear document in the anticipation that these will be brought on line before 2025.  The nuclear statement also sets out the Government’s conclusion that it is satisfied that effective arrangements will exist to manage and dispose of the waste that will be produced by new nuclear power stations in the UK and “that there are Imperative Reasons of Overriding Public Importance for why it should proceed despite it not being possible at this stage to rule out any adverse effects on European Sites“.

Non site-specific support remains for renewable energy and guidance will apply to offshore wind farms of over 100 MW and onshore wind farms and biomass plants of over 50 Megawatts.

Several Conservative MP’s – primarily Chris Heaton – Harris attacked wind energy as not being right for the UK at the debate held yesterday.  Heaton – Harris claimed that onshore wind energy diverts valuable resources from “other renewables that do work and that people like“.

Hendry said the Government expects onshore wind energy to increase over the years ahead.  “We recognise, of course, that wind is intermittent…. back-up is required, including from gas, coal or biomass. It could also be done through storage-pump storage and hydrogen or battery technologies are coming through at an impressive rate. That will start to move the technology on from working only when the wind blows to allowing electricity to be available when people need it” said the Minister.

Hendry went on to say “However, there is another side to the argument.  Sizewell B one of our more recent nuclear power stations, has been out of operation for seven months. In that time, it did not produce a single unit of electricity, but our wind system produced 1.8 TWh of electricity, the equivalent of the annual consumption of 400,000 homes. We believe that security of supply comes from a mix of technologies. We cannot put all our eggs in one basket. Having a mix means that if there is a problem in one part, we have a better chance of keeping the lights on, and doing so affordably.

Turbines generally turn about 70% of the time. The load factor figures suggest that it is lower than that, but the turbines may be turning at a relatively low speed for 70% or 80% of the time; there are only a few hours when they are not generating. There was a period at the beginning of the year when they were contributing perhaps only 0.1% of our electricity consumption, but recent figures show that they have been producing 10%. The figures fluctuate, and they need to be seen as part of the totality of what is necessary.”

source: Theyworkforyou / Hansard

Huhne has brought the costs to the attention of the Cabinet and pointed out that the total budget for the energy and climate change department is limited to £3bn annually. Huhne described his department as “not so much the Departement of Energy and Climate Change, as the Department of nuclear legacy and bits of other things“….He went on to say that what we are effectively paying for here is “decades of cheap nuclear electricity for which we have suddenly got a massive postdated bill“.

Hulne is however commited to the spend saying that there are genuine nuclear safety issues that mean it has to be paid for. Meanwhile questions are being raised as to how this will affect the rest of the energy efficiency and climate change programmes. No further details regarding how the new government will support renewable energy have been issued.

The new Secretary of State for Energy and Climate Change is in the ironic position of being responsible for determining new nuclear power stations when he is strongly anti-nuclear. Under the coalition agreement Lib Dems are not allowed to vote on the nuclear issue. Hulne is however likely to have a pro-nuclear mandate due to support from the Conservatives and Labour. Despite abdicating the right to vote on nuclear, it does not appear that the Lib Dems are going to keep wholly quiet on the issue.

In 2007 Chris Hulne said “The doubling of our electricity generation from wind in a little more than a year shows what renewables can do, and gives the lie to the need for a new generation of nuclear power.“. It is ironic therefore that he will ultimately be responsible for nuclear power station planning applications.

Under the Conservative – Liberal Democrat coalition negotiations agreements reached yesterday, the parties agreed to put in place the following measures:

- Establishment of smart grid and roll-out of smart meters
- Establishment of feed-in tariff systems in electricity- as well as the maintenance of banded ROCs
- Measures to promote a huge increase in anaerobic digestion
- Creation of a green investment bank
- Home energy improvements
- Retention of energy performance certificates but scrapping HIPs
- Measures to encourage marine energy
- Establishment of emissions performance standard to prevent coal- fire power stations being built uless they are equipped with sufficient Carbon Capture Storage (CCS)
- Establishment of a high speed rail network
- No third runway at Heathrow or additional runways at Gatwick and Stansted
- Replacement of Air Passenger Duty with per flight duty
- Floor price for carbon
- Measures to make import or possession of illegal timber a criminal offence
- Measures to promote green spaces and wildlife corridors
- Mandating a national recharging network for electric and plug- in hybrid vehicles
- Continuation of public investment in CCS for 4 power stations
- Reduction of central government carbon emissions by 10% in 12 months
- Increase in the renewable energy target subject to the advice of the Climate Change Committee

The difficult issue is nuclear power. Liberal Democrats have long opposed any nuclear construction whilst the Conservatives are committed to allowing the replacement of nuclear power stations. A process has therefore been agreed which involves:

- The government completing the drafting of a national planning statement and putting it before Parliament.
- Specific agreement that a Liberal Democrat spokesman will speak agains the planning statement but that Lib Dem MP’s will abstain: and
- Clarity that this will not be regarded as an issue of confidence

Nuclear is therefore an area where the Lib Dems appear to have been at least partially gagged.

A potential Conservative/ Lib Dem coalition has to date been the most discussed. We know however that the Conservatives and the Lib Dems have major policy differences on electoral reform, the economy and immigration.

Overall the Lib Dems appear to have more in common with Labour – from the timing of public spending cuts to electoral reform and creating a green economy. With the major Lib-Lab differences limited to ID cards and immigration, the match looks much cleaner. Labour however did poorly in the election and even with Gordon Brown offering to resign it looks like a deal with the Conservatives is the more realistic option on the table.

So -if the Conservatives and the Lib Dems do manage somehow to overcome their differences – what would be the outcome for UK energy policy?

David Cameron has said that he shares common ground with the Lib Dems on moving towards a low carbon economy and decentralising power. The Lib Dems are however vehemently opposed to nuclear power whilst the Conservatives strongly support the technology. The nuclear issue has not however made it on the list of deal breaking “red lines”. We can therefore expect the new generation of nuclear power stations to be pushed through – however they are likely to be subject to further delays.

Given both parties localism agenda, the Infrastructure Planning Commission is highly likely to be moved to the Planning Inspectorate with decisions for large energy projects such as nuclear and wind farms over 50MW falling to the Secretary of State.

The Lib Dems have much higher renewable energy targets (40% renewable energy by 2020 and 100% by 2050) than the Conservatives (the currently adopted 20% renewable energy by 2020), however the Conservative party is famous for its climate sceptic MPs and dedication to delivery is questioned by many in the renewables industry.

Labour also wants nuclear power but wants decisions on planning applications to be taken by the independant body – the Infrastructure Planning Commission (IPC). If by some miracle they do achieve a coalition with the Lib dems delays to the nuclear programme are also likely.

Whatever the outcome – it is likely to be positive for the UK renewable energy industry. All parties in principle support renewables and any attempts by Conservatives to prevent certain technologies from being built via changes to the planning system or fiscal measures are likely to be picked up and prevented by the Lib Dems.

The nuclear giant EDF say that there is not enough wind to justify building the £2 million ($3.2m) turbine at the site close to London’s Hackney Marshes.  Instead they have suggested installing one on the south coast at Weymouth – close to the Olympic sailing venue.

The Olympic Delivery Authority have however accepted a proposal from electricity supply rival company Ecotricity who says that there is enough wind for the wind turbine to be viable.  Ecotricity openly criticised EDF last year for ’stealing’ its green union jack logo and using it to make them appear green, renewable and British.

The 130 metre high wind turbine was granted planning permission back in 2007.   It is expected to generate enough electricity for the annual supply to 1000 homes but is unlikely to be operating until next year.

Energy and Climate Change Secretary Ed Miliband said: “Renewables, nuclear and clean fossil fuels are the trinity of low carbon and the future of energy in Britain. Under our plans we will get 40% of our electricity from low carbon energy by 2020 and more in the years afterwards.

“Our plan will strengthen our energy security, it seeks to be fair to the most vulnerable, it seizes industrial opportunity and it rises to the moral challenge of climate change.

“In five months, the world must come together at Copenhagen and follow through on the commitment of world leaders last week to stop dangerous climate change. Today we have shown how Britain will play its part.” We need to all-but eliminate carbon from electricity by 2050“.

To help the electricity grid network problems – the government proposals include £6m to start development of a ‘smart grid’. The Department of Energy and Climate Change (DECC) will take direct responsibility from electricity regulator – Ofgem for establishing a new grid access regime within 12 months.

A new Office for Renewable Energy Deployment in DECC is proposed to speed up the growth of renewables in the UK. £11.2m has been earmarked to help regions and local authorities prepare for and speed up planning decisions on renewable and low carbon energy.

The final shortlist of the schemes for the Severn Tidal Power feasibility study is confirmed as three barrages (including the Cardiff-Weston barrage) and two lagoons. Three smaller schemes have also won funding to support their development.

A consultation covering the changes to the existing Renewables Obligation (RO), including an extension of the life-time of the RO to 2037 is to be launched this year.

Approval for the UK’s largest biomass power station on Teesside has been granted planning consent and 14.5 Gigawatts has been confirmed as expected to come from onshore wind energy by 2020 with Miliband sending out a strong message that the biggest threat to the countryside is not wind turbines but dangerous climate change.

New national policy statements will be prepared by the government and will set out the country’s need for new energy infrastructure. Separate statements are being produced for nuclear power, renewable energy, electricity networks, fossil-fuel generation and oil and gas pipelines and storage.