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117WS
Written Ministerial Statements
6 JUNE 2013
Written Ministerial Statements
118WS
These actions complement the policy changes that
the coalition Government have already put in place
through its localism agenda and the recent reforms to
planning, which put communities at the heart of decision
making.
Investing in communities—benefits, ownership and improving
local economic impacts
Communities hosting renewable energy installations
play a key role in meeting the national need for secure,
clean energy. It is only right that local people should be
recognised and rewarded for that contribution. This
new package of measures on community benefits will
ensure that communities receive a fairer share of benefits
associated with onshore wind and are properly empowered
to negotiate with developers the type of benefit package
that best suits their local needs.
Although many onshore wind developers already
offer community benefit packages on a voluntary basis,
we challenged them to do more. In response therefore
we expect the onshore wind industry to revise its community
benefit protocol, including an increase in the recommended
community benefit package in England from £1,000/MW
of installed capacity per year, to £5,000/MW/year for
the lifetime of the wind farm (usually around 25 years).
To complement this we will be producing guidance and
setting up a register of community benefits—so that
local communities are properly empowered to discuss
and negotiate the types of benefit packages that best
suit their needs.
We will also be exploring ways to make it more
attractive for communities to invest in wind projects
themselves, through the recently issued call for evidence
on community energy. A joint DECC/DEFRA £15
million rural community renewable energy fund will
also provide loans and grants to rural communities for
initial development and planning work.
We will be working with industry and other stakeholders
to ensure that the local economic and employment
potential of onshore wind projects are maximised. We
will also produce supply chain guidance so that all
parties—developers, local business and local people are
equipped to respond to these opportunities.
The package of measures that DECC, DCLG and
the onshore wind industry is announcing today provide
a rigorous framework that will bring about real change
and introduce more understanding, fairness, trust and
mutual benefit between communities and the onshore
wind sector.
We will be working across Government over the next
12 months to deliver this change.
Costs
We are committed to ensuring that support levels
represent good value for money to the taxpayer and
that they reflect the true costs of deploying the technologies.
As the costs of deployment fall so will any support.
We have already reduced the support level for onshore
wind under the renewables obligation from April 2013
by 10% (from 1 ROC/MWh to 0.9 ROC/MWh to reflect
changes in costs). We carried out the second part of the
call for evidence to check that this reduced support rate
remained appropriate.
A large amount of new cost data have been rigorously
analysed by economists and engineers within the
Department.
The latest evidence shows that costs remain within
the bands set out in the renewables obligation banding
review. The mid-point estimates have, however, increased
slightly, due to higher costs of planning, and operation
and maintenance contracts. The change in the midpoint
estimate of costs is less than 5% and thus within the
original range.
As this evidence does not show a significant change
in costs, it does not meet the legislative requirements for
a further review of RO support levels.
This decision ensures ongoing value for money for
the consumer and provides more certainty for developers,
ensuring continuity of support as contracts for difference
are introduced as part of our electricity market reforms.
DECC will of course continue to monitor the costs of
renewable energy technologies, in accordance with the
provisions in article 33 of the Renewables Obligation
Order 2009.
Conclusion
The measures that make up our response to the call
for evidence will allow the deployment of onshore wind
to the level necessary for our energy security and renewable
energy goals, but will also ensure that communities will
have a greater say over proposed onshore wind development
and will receive more reward for hosting those developments
that are taken forward. This is an important sector that
is driving economic growth and I am determined that
local communities should share in these benefits.
1
Sources: quarterly renewable electricity table ET 6.1; and quarterly
electricity table ET5.1.
http://www.decc.gov.uk/en/content/cms/statistics/
energy_stats/source/renewables/renewables.aspx.
http://www.decc.gov.uk/en/content/cms/statistics/
energy_stats/source/electricity/electricity.aspx.
Average household consumption (GB, 2011) can be found in the
our regional electricity statistics here:
http://www.decc.gov.uk/en/content/cms/statistics/
energy_stats/regional/electricity/electricity.aspx.
ENVIRONMENT, FOOD AND RURAL AFFAIRS
Hazardous Waste (National Policy Statement)
The Secretary of State for Environment, Food and
Rural Affairs (Mr Owen Paterson): Having considered
consultation responses and the report of the Select
Committee on Environment, Food and Rural Affairs to
the draft national policy statement for hazardous waste
which was laid before Parliament on 14 July 2011, I am
today laying (under sections 9(8) and 5(4) of the Planning
Act 2008), the proposed national policy statement for
hazardous waste. The Government’s response to the
Environment, Food and Rural Affairs Select Committee
report (under section 9(5) of the Planning Act 2008 was
laid earlier this morning.
A written response to the consultation is also being
published on the Department’s website at: www.gov.uk.
National policy statements are critical to the new
planning system, which will help developers bring forward
hazardous waste projects of national significance without
facing unnecessary delays. Decisions will be taken in an
accountable way by elected Ministers taking social,