Renewable Energy

1. Today, the Minister for Environment Planning and Countryside issued, for consultation a draft Ministerial Interim Planning Policy Statement and the draft Technical Advice Note 8 (TAN 8) on renewable energy.  This revised guidance represents a change in renewable energy planning guidance for all technologies, taking forward the principle of spatial planning for the delivery of our clean energy policy.

2. We believe the revised planning policy and advice will provide a planning framework that will facilitate our sustainable development and energy strategy objective to make Wales a global showcase for clean energy by 2010


3. Both the UK Energy White paper and the Assembly Government's Energy Strategy place the reduction of carbon at the heart of decisions about the way in which we generate and use energy.  But for Wales, like any other country, an adequate and reliable supply of energy is important for social and economic advancement.
 
4. We therefore need to find ways to cut carbon emissions within a sustainable development context.  This means searching for cost effective yet cleaner forms of energy generation in Wales and therefore enabling economic growth and prosperity without compromising the environment.  

5. It is a challenge that is at the heart of our Energy Strategy.  The main strands of that strategy embrace practicable renewable and clean energy developments, a stronger drive for energy efficiency and infrastructure improvements that will enable us set an example of the way to a low carbon future.  

6. Our renewable electricity benchmark targets of 4 TWh per annum to 2010 and 7TWh to 2020 provide economic, environmental and social opportunities to Wales while fulfilling our sustainable development duty.  

7. 4TWh of renewable energy development represents capacity of about 1,500 MW. In Wales there is currently an installed capacity of 381MW of onshore wind and hydroelectric power, which equates to 1.18 TWh.  Therefore a little over 1,000 MW (about 2.62 TWh, depending on baseload factors) of additional renewables capacity is required to meet the 2010 target.

8. Wales has a plentiful supply of renewable resources, some of which are transportable, some of which are site specific and each of which has a different cost base.  On the face of it this would suggest a range of technology options would be capable of meeting the 2010 benchmark target.  However, in considering the technologies capable of economic delivery for the 2010 target, we have had to take account of the UK competitive energy market and the commercial status of renewable technologies.

9. Onshore wind is currently the only commercial renewable energy technology within the market place.  Offshore wind is an emerging technology and cannot compete commercially with onshore wind at present without grant support as demonstrated by Round 1 offshore windfarm projects.  All substantial hydroelectric power in Wales has already been developed and there remains little scope for further development.  Utilising  Biomass to produce electricity at competitive prices remains a  challenge and Wave and Tidal Technologies are still emerging technologies in the developmental phase and are a considerable distance from  commercial applications.  Photovoltaics are interesting at the small scale, but not currently commercially viable outside of building systems. However they have considerable long term potential and we very much welcome Sharp’s investment in PV systems manufacture in Wrexham.

10. Our conclusion therefore is that within the current UK energy market,  onshore wind is the principal renewable technology with potential to contribute to the achievement of the 2010 target .  Other technologies will make a valuable, but limited contribution that will be largely dependent on the availability of adequate grant support.  

11. This view is largely confirmed by the joint Carbon Trust/DTI Renewables Innovation Review which concluded in February this year.  One of its key conclusions was that ‘wind power, both on- and off-shore, is presently the only economic scaleable technology and will deliver the majority of the required growth in renewable energy to meet the 2010 target and continue to be the dominant technology out to 2020’.  While we are proud to host the UK’s first offshore windfarm in North Wales we do not fully support the report’s optimism about very large offshore wind farms coming on stream by 2010. In particular we are also conscious that if further sites are to be enabled off our coastline, a full and lengthy strategic environment assessment has to be undertaken.  

12. To determine the level of onshore wind needed to contribute to the 2010 target, we have considered:

 What technologies are commercial generating electricity in the market place;
 the constraining factors for development from the renewables resource base in Wales and environmental designations of national significance;
 the existing and consented renewable power production;
 the grid infrastructure structure in Wales and the capacity issues within the  wires; and
 the portfolio of renewable energy projects being developed in Wales to the 2010 timeframe

13. Having taken these matters into account, our anticipated scenario of renewable energy developments required to 2010 to achieve the renewables target of 4 TWh is as follows:

 Onshore Large Scale Wind 800 MW
 Other technologies, (including offshore wind, Community/Brown Field, Biomass and PV) 200 MW.

14. Therefore, in order to meet our 2010 benchmark targets we believe a minimum of 800 MW of onshore wind needs to be developed in Wales in the strategic search areas for development that have been identified in the planning policy.  

15. Up until now there has been an ad-hoc, piecemeal approach to onshore windfarm development. Through this planning policy we want to maximise positive opportunities for renewables developments with the minimum impact on our valued environment.  

16. Renewable energy developments can create opportunities for Wales for example through manufacturing and adding value in the supply and community chain. They can provide economic opportunities and a means for delivering a cleaner environment.  We believe that local communities in Wales should derive tangible benefits from any developments as has happened in part of the EU such as Navarre in Spain.  We expect any such developments in Wales to do likewise. Communities in particular can gain from integrating renewable energy developments with other activities and we want to see community benefits maximised from all future renewable developments.  The latter should also enable our regeneration and diversification objectives.  

17. We are confident that the planning policy will make a positive difference in achieving targets for renewable energy generation.  And in particular it will provide the focus and framework for where it might be possible to develop larger scale onshore windfarms with appropriate consideration and safeguards.  

18. The TAN 8 consultation will give all interested parties an opportunity to express views on our proposed way forward. We see TAN 8 as opportunity for Wales to be at the leading edge of providing clear unambiguous guidance for Local Authorities, the industry, Government and their agencies for the future development of renewable energy.


19. This is part of a wider delivery mechanism for the energy strategy for Wales. We already have the world’s highest efficiency gas turbine being developed by General Electric at Baglan, there are the massive LNG investments planned by Exxon, Petroplus and NGC Transco in Milford Haven and environs, with similar interests being expressed in Anglesey. I have already highlighted the exciting Sharp development and the UK’s first offshore windfarm in the north.  Hopefully with Objective One support we should soon see the formation of a Welsh Energy Research Centre in our universities and an energy Technium in Pembroke. And TAN 8 should enable a rapid increase in our on-shore wind capacity from the current level of 173Mw installed and 120 consented.

20. We will also be consulting shortly on a longterm energy route map, which will look at our energy strategy implementation options and will hopefully provoke stronger participation from industry, agencies and stakeholder groups.  It will focus on issues such as carbon emissions, security of supply etc and gaining economic advantages from the development of clean and diverse energy for Wales whilst encouraging and supporting the technologies of the future through a programme of innovation and research and development.


The hyperlink below will take you to the following documents:

Renewable Energy Consultation covering letter
Draft Tan 8
Draft Tan 8 Map 1
Draft Tan 8 Map 2
Draft MIPPS
Draft MIPPS Map 12.1  

http://www.wales.gov.uk/subiplanning/content/tans/tan08/mipps-index-e.htm