Government support renewables generation through the renewables obligation. We published a consultation on banding the renewables obligation on 23 May 2007. Banding will mean technologies such as offshore wind farms, which are at an earlier stage of development and face higher costs, will be given additional support allowing them to compete with well established technologies such as co-firing biomass in coal-fired power stations.
The two offshore wind farms off the north east coast for which consents have been sought are the Blyth development, which was built in 2000 and comprises two turbines, and the proposed Teesside project that would comprise a maximum of 30 turbines and which is the subject of an undetermined consent application.
Blyth was consented under the Food and Environment Protection Act and the Coast Protection Act and the Department for Trade and Industry was not, therefore, involved in the decision-making process. Consent applications for the proposed Teesside development are being considered under the Electricity Act, the Food and Environment Protection Act and the Coast Protection Act. Objections to that proposal have been received by my Department, on behalf of the DTI and Defra, from a number of organisations and individuals. The objections will be considered by the Secretary of State in taking his decision on whether to grant consent for the project.
The Government published the White Paper on Energy: “Meeting the Energy Challenge”: on 23 May 2007. The White Paper contains proposals to make it easier to connect to the electricity grid, band the Renewables Obligation (RO), and improve the planning consent process, all of which will help the development of offshore wind farm projects.
Banding the RO will mean technologies such as offshore wind, which are at an earlier stage of development and face higher costs, will be given additional support allowing them to compete with well established technologies such as co-firing biomass in coal-fired power stations.
It is also important to provide a long-term market for offshore renewables. The DTI and the Crown Estate have already run two competitions for the development rights for offshore wind farms, granting the rights for 29 offshore wind farms. The White Paper announced the Government’s intention to provide regular opportunities for companies to bid for further development rights. The DTI is working with the Crown Estate to explore options for further large-scale offshore wind farms and intends to publish proposals by the end of the year.
The Department has begun to explore options with the Crown Estate, for the siting of further large-scale offshore renewables development. Any consideration of further programmes of commercial-scale offshore wind farms will be based on a strategic environmental assessment (SEA). It may also be necessary to undertake Appropriate Assessments, depending on the locations identified for a further programme. These assessment processes would include consultation with the renewables sector and other parties with interests in or responsibilities for the marine environment.
In the absence of any regional assessments of the suitability of siting offshore wind farms off the north east coast, DTI officials and their partners in DEFRA have been considering the suitability of two demonstration wind farm projects—Blyth (installed) and Teesside (consent application under consideration)—in that area on a case by case basis and taking account of relevant issues.