Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 580-598)

MALCOLM WICKS AND MR PAUL MCINTYRE

10 OCTOBER 2006

  Q580  Mr Bone: Is that the best I am going to get?

  Malcolm Wicks: That is pretty good actually.

  Q581  Chairman: I mean this in the nicest possible way, but you do not strike me as the most aggressive of ministers.

  Malcolm Wicks: No, I am the most amiable especially before select committees after almost two hours.

  Q582  Mrs Curtis-Thomas: When the National Grid came to give us some evidence earlier on this year they talked about what they would need to do in order to allow microgeneration systems to link up to the grid. They talked about a £1 billion plus investment—£3 billion—which was needed in order to link microgeneration back into the system and they also cited it as a major inhibitor for the development of microgeneration. Given that, you have talked, wonderfully by the way, about the type of grants which are currently available to people living in domestic dwellings for microgeneration systems. You talked about £80 million, but that comes down to a 50% grant and I know quite a number of people who have taken up that particular option. That is fine, but the level of investment needed in the grid is substantially more than that. How do you see a continued expansion in microgeneration within the context of a network which is not actually geared to take any spare capacity which may derive from that?

  Malcolm Wicks: I would need to talk to National Grid, as we do of course, on this particular issue to make sure we are using the same language of microgeneration.

  Q583  Mrs Curtis-Thomas: It is fairly easy. Most engineers in this country know that linking up a nuclear power plant is not difficult, but if you have numbers four, six, ten and 12 Bartholomew Crescent also wanting to link up to that system, then it seems to be that there is a fundamental problem. They can use the energy within their own establishment, but they cannot export it out and back into the grid. That is really what we want to see, is it not?

  Malcolm Wicks: Yes, we do. It involves things like smart metering as well so that the customer can see what is being used. When I say I do not recognise that figure I am not saying it is wrong or right; I just need to talk to them about that. Generally we recognise that in terms of broad approaches to renewables and microgeneration, yes, of course there are quite important challenges for National Grid and local wiring systems.

  Q584  Mrs Curtis-Thomas: I think those important challenges have very, very big numbers attached to them in terms of the investment required. At the moment the lack of investment is probably impeding the development of microgeneration systems.

  Malcolm Wicks: I am sure there are people already, but I shall check this, who are already selling back to the grid without massive investment.

  Q585  Mrs Curtis-Thomas: That may be because of where they are located. I am only telling you what National Grid actually said when they came to give us evidence on this matter.

  Malcolm Wicks: I had better check the record on that and pursue that.

  Q586  Mrs Curtis-Thomas: Your encouraging words with regard to the adoption of microgeneration as far as schools are concerned is very, very encouraging and the marvellous programme we have for building schools for the future means, for instance, that every school in Knowsley is going to be demolished bar one and new schools built. My understanding is that at the moment the contract documents for those schools do not stipulate that they need to be environmentally friendly. So we can talk about it and say how commendable this is, but there is massive public investment going into new buildings now. Mass creation is one thing, but actually embedding that requirement into a contract appears to me to be very, very different. You talk about getting other departments to do their bit, but how does this actually translate in this massive building programme?

  Malcolm Wicks: It translates very clearly. I have met with the appropriate Education Minister—it was then Maria Eagle, who is now Sustainable Development Minister—about this very issue. I can assure you that the Department for Education and Skills are very much seized by this and they are going to be doing it. They recognise that we have a fantastic opportunity in what is a massive school building programme to make sure that—

  Q587  Mrs Curtis-Thomas: Minister, may I just interrupt? "Make sure that they are doing it" is not actually translating into "they are doing it". What I should like to do is to get some Parliamentary Questions put down so that we can see exactly how many of those new schools have actually implemented this excellent technology. That investment should be put to better use and I certainly want to see where the truth of the situation lies in comparison to the rhetoric on this important matter. We need that assistance.

  Malcolm Wicks: May I suggest that I shall certainly draw this to the attention of the Education Minister responsible and your Committee will probably do this? I have been very impressed by their whole approach on this and they see this as a major opportunity, whereas, more modestly, I see what we can do with some microgeneration money as a way of putting it on some existing schools, those which are not going to be rebuilt to give the children that education opportunity.

  Mrs Curtis-Thomas: I agree with that.

  Q588  Chairman: This word "microgeneration" is defined in the Energy Act as generating heat and electricity, but when people hear the word "generation" they imagine we are talking about electricity. In microgeneration you would say that heat production is if anything possibly more important than electricity generation, would you not?

  Malcolm Wicks: Yes, indeed. Solar panelling is about warming up water, very successfully I am told, and of course within the array—I do not mean this pejoratively—of weird and wonderful micro technologies it seems to me the heat pump is a very interesting development, reasonably popular in many continental European countries and just beginning to get into market here.

  Q589  Chairman: If social housing units were built with ground source heat pumps in, you would find the people of England would not have any gas bills to pay. There are extraordinary opportunities there.

  Malcolm Wicks: It is notable that you have a number of progressive authorities, Croydon under Labour control, now I think changed party, I cannot recall; Merton, a number of local authorities—

  Q590  Chairman: And Woking under Liberal Democrats.

  Malcolm Wicks: I am sure one or two of those—who now say that any new construction under a certain number of dwellings—I cannot remember the figure—has to have 10% of the energy coming from renewables. The Department for Communities and Local Government are looking at that and the Mayor's Office in London and all that.

  Q591  Chairman: There are just lots of words floating around here. I do not think the vocabulary is clear and helps. Your energy report talks about distributed energy, the Act refers to microgeneration. I do not think people know what this is. There is a need for clarity of language here, is there not? This is not a criticism of you; we have to find a new vocabulary to express what it is.

  Malcolm Wicks: I like the idea of a lot of words floating around a select committee. You are right except that there is a family of things here. The thing I saw in Copenhagen, a whacking great power station doing wonderful Combined Heat and Power, was local at one level, for much of Copenhagen but rather different from the windmill I want to put on my roof.

  Chairman: I am more interested in a solar panel on mine, but having a listed building they will not let me of course.

  Q592  Rob Marris: Who built and paid for that power station in Copenhagen? Was it private sector or public sector or private with public monies in it?

  Malcolm Wicks: I think private sector but with encouragement from public policy. I am sorry but I am not at all sure.

  Q593  Chairman: I am sure Greenpeace are listening to this session and I am sure they will write to Mr Marris and the Committee to tell us more about that power station.

  Malcolm Wicks: They will.

  Q594  Chairman: May I just bang a particular drum? I was very disappointed by your lack of ambition in the document for micro-hydro installations "limited by the availability of suitable locations". I should just like to draw your attention to Worcester city, where I live. Powick Mills on the Teme had a hydro station in 1894 which produced electricity for half of the city until 1950. Fladbury Mill in my constituency produced electricity for the whole village until the mains came there. There is a lot of opportunity here for micro hydro. Can I encourage you to be a bit more robust?

  Malcolm Wicks: It was remiss of us not to mention that example in the Energy Review document.

  Q595  Chairman: It was.

  Malcolm Wicks: It does remind us, does it not, that the watermills and all of those things were there centuries before someone came up with the terrible term "distributed energy".

  Q596  Chairman: Exactly. The idea that hydro all comes from big dams in Scotland is misleading. There are lots of local English opportunities and Welsh opportunities to do it. Finally may I just clarify? Do you know whether the Leader of the House has any plans to give the House a debate on the progress on the Energy Review? Is that something you are pressing for?

  Malcolm Wicks: I do not know of any plans. I should certainly welcome such a debate.

  Q597  Chairman: It would be helpful to have a debate before the publication of the White Paper certainly; it is such an important subject.

  Malcolm Wicks: I should welcome a debate. Certainly we have not really had the time today, have we, to explore all the issues?

  Q598  Chairman: No; exactly. The timing of the White Paper again? Are you prepared on reflection to give us more clarity about the timing of the White Paper?

  Malcolm Wicks: Yes, I can do that: next year.

  Chairman: An honest answer anyhow. Minister, thank you very much. We have put you through not the windmill but the mill today and you have responded magnificently. Thank you very much indeed.





 
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