Memorandum by the Welsh Assembly Government
INTRODUCTION
1. Climate change is one of the biggest
challenges facing the world today and the Welsh Assembly Government
is determined to play its part in tackling it.
2. "One Wales"[33],
the agenda for government in Wales, sets out the Assembly Government's
ambitions in relation to tackling climate change in Wales and
includes a commitment to "aim to achieve annual carbon reduction-equivalent
emission reductions of 3% per year by 2011 in areas of devolved
competence".
3. "One Wales" also includes a
number of commitments on energy efficiency and diversified renewable
energy generation.
4. The Renewable Energy Route Map for Wales,
published for consultation in February 2008, is the first strategic
step to fulfilling our commitment. We believe that with Wales'
coastline, geography and climate, it is quite feasible for us
within 20 years to produce more electricity from renewables than
we consume as a nation.
5. With sufficient innovation and investment,
the right Government framework and public support, Wales could
produce some 33TWhr per year of electricity (its current consumption
is around 24 TWhr) from renewable sources. Half of this would
come from marine, a third from wind and the rest mainly from sustainable
biomass. And from the latter in its various forms, including waste,
Wales could produce some 3TWHt of renewable heat each year.
6. The UK has signed up to the 2020 EU target
of 20% of energy requirements (electricity, heat and vehicle fuels)
coming from renewable sources, including those linked to the waste
cycle. Wales is committed to this target and can contribute significantly
by taking advantage of our considerable natural renewable sources
of energy—wind, tide, wave, hydro and biomass.
7. However, the first, most cost-effective
and immediate way we can reduce greenhouse gas emissions is to
minimise our use of fossil fuel energy: for example by insulating
our buildings to a high standard, purchasing the most energy efficiency
appliances, using green tariff electricity and making sustainable
transport choices.
RENEWABLE ENERGY
ROUTE MAP
FOR WALES
8. Renewable energy technologies are carbon-free
or, in the case of bio-energy, carbon neutral. Renewables can
contribute to some of our heating needs especially through local
combined heat and power (CHP), biomass and solar water heating.
But the biggest impact on reducing heating requirements will come
from paying much more attention to energy efficiency in all our
buildings. There is also scope to shape future action to address
issues such as fuel poverty: for example through increased efficiency
measures and district heating.
9. In looking at future options generally,
there is considerable scope for combining economic, skills and
social benefits, with the environmental ones. Across the Assembly
Government it is our intention to develop a strong "green
jobs" strategy, building on previous skills and economic
development initiatives. Working with our colleges, the relevant
sector skills councils and the private sector we will wish to
ensure Wales has the necessary skills base to enable the rapid
transition to a low carbon economy.
10. Increased generation from renewables
in Wales could also provide specific support to the rural economy
through increasing the options for alternative energy for communities
who are not connected to the gas network. There could also be
opportunities for new income streams for those who either install
micro-electricity units in their homes, communities or land or,
those who live in communities associated with major renewables
developments.
11. Depending on decisions on harnessing
tidal range power in the Severn estuary, the potential in Wales
from tidal and wave projects by 2025 could provide more than half
of our current electricity consumption. While much tidal-stream
technology is currently at a research and demonstration stage,
and is unlikely to be in full gigawatt scale operation until after
2020, there are a range of interesting projects which are already
at or near the major commercial feasibility stage. These include
the tidal stream and wave-power projects which are exploring sites
off Pembrokeshire and Anglesey.
MICRO-GENERATION
12. We published the Wales Microgeneration
Action Plan published in March 2007 and we have subsequently issued
a Planning consultation on reducing permitted development rights
in relation to domestic properties. Research has recently been
commissioned (jointly with the UK Department for Communities,
and Local Government) on the potential for micro-generation equipment
on commercial buildings and the planning implications of this.
The final report will inform future changes to the planning consent
regime in due course. The variable nature of most microgeneration
technologies makes it unlikely that all the electricity produced
will be used at the time of generation. Until storage technologies
improve, in the vast majority of cases, the excess electricity
will be fed back/exported into the distribution network gaining
the benefit of utilities' renewable energy feed in tariffs (REFIT.
) The total annual energy produced from the strategy targets for
micro-generation would be circa 0.45 TWhr each for heat and electricity.
LARGE SCALE
DISTRIBUTED GENERATION
("OFF-GRID")
13. Keeping the generation and use of electricity
within a local community removes a large part of transmission
losses associated with centralised power stations (though there
still needs to be connection to the national grid to ensure power
is available should the local generation fail.) This kind of local
generation is particularly attractive when it is based on renewable
energy sources, resulting in community benefits and employment
as well as electricity, and innovative financing of such developments,
especially by special purpose energy supply companies (ESCos.)
ESCos are usually set up by a public sector organisation to deliver
energy efficiency, energy savings and/or sustainable energy. This
can be done through a variety of different initiatives or through
a particular initiative, such as a CHP scheme. Such entities may
well have a public body or quasi-public body nature. We are considering
options on how this approach could be promoted in Wales.
CONSENTING REGIMES
14. There are a number of different pathways
by which renewable energy projects are granted consent in Wales.
The scale and location of the project will affect which route
is taken and therefore which body has the ability to decide on
whether consent will be given.
15. Currently large onshore power station
consents above 50MW (and offshore projects above 1MW) are the
responsibility of the UK Department of Business Enterprise and
Regulatory Reform (DBERR). The Assembly Government and its agencies
are consulted on such projects with local stakeholders being statutory
consultees. Only the objections of local authorities can now institute
a public inquiry. Consent for off shore development can be obtained
under the Transport and Works Act (TWA) if navigation lanes are
affected. Consents under the TWA are devolved to the Assembly
Government. Consents granted in these ways are outside the normal
Town and Country planning system.
16. These provisions normally only apply
to large scale projects with most renewables, including micro-generation
projects, being a matter for local authority planning consent,
with the Assembly Government holding call in and appeal functions
which are used sparingly.
17. Onshore wind offers the greatest potential
for an increase in the generation of low-cost electricity from
renewable energy in the short to medium term. Following extensive
detailed technical work the Assembly Government has established
seven Strategic Search Areas (SSAs) where large-scale (over 25MW)
onshore wind developments should be concentrated. These key areas
constitute only a few percent of Wales" landmass. The characteristics
used to define SSAs in the Assembly Government's Technical Advise
Note on Planning for Renewable Energy (TAN 8) remain unchanged
since 2005 and consequently the Assembly Government continues
to believe that the seven SSAs remain the most suitable locations
for large on-shore wind farms.
18. The SSA boundaries are at a "broad
brush" scale. It is a matter for local planning authorities
to undertake local refinement, taking into account local landscape,
visual and cumulative impact issues to guide and optimise initial
development whilst ensuring that environmental impact is kept
to the minimum. The Assembly Government expects the relevant local
planning authorities to include the revised boundaries of the
SSAs in their Local Development Plans.
19. Small-scale wind farms of up to 5MW
if carefully sited can have minimal environmental impact and therefore
the TAN8 guidance places no geographical restriction on the location
of such wind farms. Similarly, on brown field sites, wind farms
of up to 25MW might be accommodated.
20. The potential for the development of
wind power within urban/industrial areas in Wales is so far relatively
untapped. We aim to strongly encourage the exploration of opportunities
for wind developments of up to 25MW in urban/brown field site
areas.
21. Off-shore wind-farms are now normally
consented by BERR under Section 36 of the Electricity Act 1989
(using the provisions of the Energy Act 2004) with the Assembly
Government being an informal consultee. Leases are provided by
the Crown Estate where they own the seabed. Licences under the
Food and Environment Protection Act 1985 (FEPA) are in Wales a
matter for the Assembly Government.
22. Forestry Commission Wales (FCW) is undertaking
the process of leasing the land which it manages within the TAN
8 Strategic Search Areas (SSAs) for major wind farm developments
on a competitive basis. The successful wind farm developers in
the bidding process have been offered options for this land (which
constitutes a very small fraction of the forested area of Wales)
in respect of 945 MW of potential wind farms, requiring the minimum
of tree felling. These development proposals will be subject to
normal planning consent processes and will need electricity grid
connections.
23. On 1 April it was announced that three
companies have signed agreements with the Welsh Assembly Government
which will allow them to seek planning permission to develop wind
farms.
24. FCW is continuing to work with potential
developers in the remaining SSAs described in TAN 8 and aims to
announce the completion of further agreements shortly.
PLANNING BILL
25. From April 2009, subject to the proposals
in the Planning Bill and their enactment by the UK Parliament,
large scale renewable energy project consents (over 50MW on land
and over 100MW off-shore) in Wales could be determined by the
proposed Infrastructure Planning Commission (IPC) rather than
the Secretary of State for Business, Enterprise and Regulatory
Reform. The IPC would take decisions in the light of National
Policy Statements, which would be prepared by the UK Government.
The IPC will have the ability to grant a range of consents currently
scattered throughout legislation, and would act as a "one
stop shop" for the consideration of major renewable energy
projects. The Assembly Government continues its discussions with
the UK Government to ensure appropriate levels of involvement
with the Assembly Government on applications located in Wales
and with special relevance to Wales. In addition, the Welsh Assembly
Government is continuing to discuss the mechanisms for appointing
Commissioners in Wales with the UK Government.
INFRASTRUCTURE
26. North and South Wales are served by
separate east-west spurs of the electricity transmission grid
networks, with mid Wales grid coverage being especially weak.
Major new grid connections will be required in the more remote
TAN 8 strategic search areas.
27. National Grid Transco and SP/Manweb
(the distribution provider in north and mid Wales) have been working
with developers, OFGEM and the Assembly Government to determine
the most efficient way to proceed. In both mid and north Wales,
developers have been encouraged to discuss their plans collectively
with the grid operators so that, rather than proceeding piecemeal
as the current Office of Gas and Electricity Markets (OFGEM) mechanisms
may encourage, the grid companies can determine the optimum new
connections which need to be built. This work is still underway
with long term grid connection offers having already been made
by the National Grid Electricity Transmission (NGET) for very
substantial mid-Wales on-shore wind farm projects on the basis
that mid-Wales would significantly benefit from a new 400kV grid
link into England.
OVERCOMING BARRIERS
28. In south Wales, the main potential grid
problems are the constraints on the electrical current capacity
of the electrical grid links between south Wales and England because
of the level of interest in building substantial new gas fired
and renewables (wind and biomass) projects. Quicker new connections
in south Wales may be enabled by some of the ideas being considered
under the OFGEM Transmission access review, including capacity
auctioning (as already happens with gas connections) or the so
called "connect and manage" offers. These would enable
new intermittent sources to be connected without the grid companies,
and eventually the consumers, paying high costs when the lack
of a full capacity connection means that the source is not allowed
to supply at its maximum capacity. However the Assembly Government
still believes that OFGEM's primary duties and the grid connection
rules should be changed to enable connection preference to be
given to low carbon generation projects.
FUNDING SUPPORT
29. The Assembly Government is committed
to the effective use of the 2008-15 EU Structural Funds (Convergence)
programmes in Wales and exploring generation opportunities, including
those in marine renewables. We wish to explore the possibility
of utilising this programme to identify the prospects for an exemplar
project for innovative tidal lagoons. And similarly for wave and
tidal stream projects, we wish to see this programme used to expoit
the economic opportunities associated with the massive technological
transition to a global low carbon economy as well as exploring
the exceptional international opportunities for Wales in marine
energy. A priority is also to develop the skills agenda to ensure
as much research and development as possible is translated into
business wealth generation.
30. It is the intention of the Assembly
Government that the final Renewables Energy Route map for Wales
together with the wider energy strategy which we are preparing
will become a key part of the UK Government's national renewables
action plan to deliver EU objectives on the promotion and use
of renewable energy sources.
17 April 2008
33 One Wales: A progressive agenda for the Government
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