Draft National Policy Statements for Energy Consultation by the Department of Energy And

HERTFORDSHIRE COUNTY COUNCIL

ENVIRONMENT AND PLANNING CABINET PANEL

TUESDAY 2FEBRUARY2010 AT10.00A.M.

DRAFT NATIONAL POLICY STATEMENTS FOR ENERGY – CONSULTATION BY THE DEPARTMENT OF ENERGY AND CLIMATE CHANGE (DECC)

Report of the Director of Environment and Commercial Services

Author: Chris BeartonTel: 01992 556309

Executive Member: Derrick Ashley, Environment, Planning and Waste

1.Purpose of report

1.1This is an information report to update the Panel on a County Council response to a Government consultation on six draft National Policy Statementsfor nationally significant energy infrastructure.

2.Summary

2.1At the Environment and Planning Panel on 5 January 2010, members considered a report outlining the content and potential impacts of the draft National Policy Statements (NPS) for Energy. The report included details on a potential County Council response.

2.2Officers were asked to report back to the Panel on the possible impacts of future development of the existing power infrastructure and to provide further maps illustrating the location of significant gas and electricity transmission networks within the county.

2.3Following discussion, members agreed that in addition to the proposed response set out in section 7 of the previous report, the following be included:-

The County Council’s position on the development of windfarms and possible locations
The County Council’s commitment to developing renewable energy sources and reducing the reliance on fossil fuels
The efforts being made by individual households to generate sustainable and renewable energy.

2.4The Panel asked for a copy of the County Council response to be brought to the next Panel meeting. This report sets out the additional information requested by Panel members and a copy of a draft County Council response is appended (see Appendix 1).

2.5The further information requested is set out in sections 5 to 7below. Revised National Grid Maps showing the location of strategic transmission networks in Hertfordshire and a copy of a draft County Council response are appended to this report.

3.Recommendation

3.1That the Panel notes this report and agrees the attached response.

4.Background

4.1The report to this Panel on the 5 January outlined the contents of the draft National Policy Statements (NPSs) for Energy and examined the likely impacts for Hertfordshire of future development of large scale energy generating infrastructure and strategic transmission networks. A proposed County Council response was outlined for consideration.

4.2At the time of the last report, it was unclear as to how Hertfordshire would be effected by future development of nationally significant energy generating infrastructure (above 50MW) or large scale transmission networks (electricity lines above 132Kv, large scale gas storage, cross country gas and oil pipelines as identified in the Planning Act 2008). The exception to this is nuclear generation where locations have been pre-determined through a separate consultation process. However, the lack of spatial guidance within the document means that Hertfordshire could be viewed as good a location as any other for future development. This position remains unchanged.

4.3Officers were asked to report back to this Panel on the possible impacts of future development on the existing power infrastructure and to provide further maps showing the location of national gas and electricity transmission networks within the county.

4.4Following discussion, members agreed that in addition to the proposed response set out in section 7 of the previous report, the following be included:-

The County Council’s position on the development of wind farms and possible locations
The County Council’s commitment to developing renewable energy sources and reducing the reliance on fossil fuels
The efforts being made by individual households to produce sustainable and renewable energy.

4.5 Members of the Panel asked to see a copy of the draft County Council response at the next Panel meeting.

5.Possible impact of future development on existing energy infrastructure

5.1This Panel will be aware that the Hertfordshire Infrastructure and Investment Strategy (HIIS) explored the infrastructure requirements of a roll forward of approved RSS rates to 2031(this included strategic growth at Hemel Hempstead and Welwyn Hatfield that has since been removed following a successful challenge to the East of England Plan). The findings of the report are outlined below.

Gas

5.2Gas is delivered through seven reception points into the United Kingdom and distributed through a national transmission system (NTS). A series of off-take points in the NTS supplies gas to twelve Local Distribution Zones. In the Hertfordshire area National Grid Gas is the licensed gas transporter. Three off-takes from the National Grid system supply the whole of the Hertfordshire area.

5.3National Grid have estimated that there is likely to be a 15% increase in annual gas demand by 2016/17 in Hertfordshire as a whole which would require associated infrastructure upgrades.

5.4Any large scale growth, such as that envisaged in the identified Key Centres for Development and Change (particularly where developed in the form of urban extensions) would require a direct connection to a medium or high pressure pipeline.

5.5The masterplanning exercise carried out as part of HIIS has identified potential locations for future development. Following preliminary discussions with National Grid and using the masterplanning as the basis for determining the potential locations for connection points to the gas network system, the available infrastructure is set out in the table below.

Electricity

5.6Electricity is generated from power stations and transmitted through a national network of electricity lines operating at 275kv and 400kv before connecting to local networks owned by distribution companies. EDF is the appointed distribution company for the Hertfordshire area.

5.7Electricity in Hertfordshire is supplied from the National Grid overhead ring main to primary sub-stations which, in turn, supplies the towns and villages within the catchments via smaller sub-stations and a network of underground cables.

5.8EDF has highlighted network supply issues with St Albans, Hatfield/Welwyn, Stevenage and Watford. Some capacity is available for Hitchin, Letchworth, Bishops Stortford, Hertford and Hemel Hempstead. There are some capacity issues which are being rectified at Royston and Watford.

5.9Following preliminary discussions with EDF it is anticipated that the extent of developments planned will require major strategic infrastructure works. The proposed large developments planned to the north and west of Stevenage will need a direct underground feed from Wymondley 400kv system and will require a 132kv primary substation with a number of secondary 33kv substations. The developments planned for Hemel Hempstead will require additional 33kv substations fed from the existing 132kv primary substation. New 33kv substations will be required to serve the developments planned for the southeast of Hemel Hempstead and North Hatfield. As there is little spare capacity in the existing network it is likely that further substations will be required adjacent to the majority of planned developments.

5.10The scale of growth planned in Hertfordshire to 2031 will require new electricity sub-stations to be built. The planning and installation of these sub-stations can take about two years. Planning of the infrastructure needs to commence as soon as possible to ensure that it can be installed in the timescale required for the development.

5.11Although identifying a requirement for significant improvements in both the electricity and gas networks to deliver new development in Hertfordshire, it is unlikely that these will be insurmountable given appropriate engagement with utility companies. However, some of the growth levels currently contained in the recent RSS review consultation document were significantly higher than those considered through the HIIS process. Assuming sufficient engagement with utility companies, it is likely that any future upgrades in infrastructure could be delivered. This would, however, need to be corroborated by technical evidence.

5.12Although strategic in nature, the above infrastructure would not be assessed by the Infrastructure Planning Commission as it is not associated with a Nationally Significant Infrastructure Project (NSIP).

6.Potential for Wind farms in Hertfordshire

6.1There is currently no specified County Council ‘position’ on the development of wind farms in Hertfordshire. The last time at which the County Council developed a formal statement on renewable energy was when it had its powers to produce the strategic planning document for the County – the Structure Plan. The last Structure Plan, adopted in 1998 and now largely replaced by the approved East of England Plan, contained the following policy on energy generation.

POLICY 54 ENERGY GENERATION

Where there is a viable choice between development to generate energy by renewable or non-renewable means, priority will be given to renewable generation, subject to the other policies of this Plan and particularly those relating to the environmental effects of development and impact on traffic generation. Development of facilities to provide energy from non-renewable sources will generally be more appropriate on sites currently or previously used in this capacity. The provision of combined heat and power will be encouraged in these cases.

Development of facilities to provide renewable energy will be supported, subject to the other policies of this Plan, and particularly those relating to the environmental effects of development and impact on traffic generation. Such facilities should be provided as close to the source of the material used in the process as possible.

6.2The thrust of Policy 52 was to support renewable over fossil fuel energy generation. Clearly, energy from wind falls into this overall support.

6.3The County Council is committed to tackling the threat of climate change and authorities in Hertfordshire are required to contribute towards the renewable energy targets set out in the East of England Plan, requiring authorities in Hertfordshire to support the development of new facilities for renewable power generation which will contribute to 10% of the region’s energy demand from renewable sources by 2010 and 17% by 2020.

6.4The Government’s national policy framework (particularly Planning Policy Statement 22 ‘Renewable Energy’ and the Climate Change Supplement to Planning Policy Statement 1 ‘Delivering Sustainable Development’ provide a very supportive framework for renewable energy generation. Local authorities should not require applicants for energy development to demonstrate either the overall needfor renewable energy and its distribution, nor question the energy justification for why a proposal for such development must be sited in a particular location. District and borough councils are under an obligation to develop similar support policies for wind energy within their Local Development Frameworks.

6.5In the 2009/12 Corporate Plan, the County Council is committed to reducing Hertfordshire’s carbon footprint through the promotion of energy savings and new, greener sources, by, among other things, resisting building developments that are not carbon neutral. The approach to delivering carbon neutral development would require the development of renewable or low carbon energy sources.

6.6The County Council is a founding partner of the Hertfordshire Climate Change Partnership (HCCP). A key objective of HCCP’s emerging ‘Climate Change Strategic Framework’ is to “minimise the CO2 emissions from everything we do”, by, among other things, reducing domestic emissions and increasing renewable energy generation in Hertfordshire.

6.7In 2005, the County Council (in partnership with the other Hertfordshire authorities) commissioned Entec to conduct a Renewable Energy Study that examined the potential for renewable energy generation in the county. The study identified that the most appropriate locations for energy generation from wind were located in the north and east of the county.However, proposals could come forward elsewhere if the developers can prove that a scheme would be technically viable. A project is currently underway to re-examine the potential for renewable and low carbon technologies in Hertfordshire.

6.8Although there is currently no specified County Council position on the development of wind farms within Hertfordshire, the development of renewable energy and zero carbon facilities are supported in-principle. Wind is one technology that would form a renewable energy source. The County Council’s support towards delivering low carbon development and delivery of energy from greener energy sources is highlighted in the response.

7.Generation of sustainable energy from individual households

7.1Reducing the amount of carbon emissions from the built environment is central to the wider sustainability agenda. There are a number of ways in which this can be achieved, one of which is the provision of onsite or decentralised energy networks on both the new and existing housing stock. Where excess energy is generated, individual households are able to feed electricity into the grid for use in other locations, in return for a financial incentive. In 2010 the Government are set to introduce a feed-in tariff which will guarantee the financial return for electricity fed back into the grid in the hope that it will encourage a further uptake in the installation of such technologies.

7.2There is a risk that the ‘free-for-all’ approach towards future energy generation set out in the draft policy statements could result in energy supply outstripping demand or restricting grid capacity for non-national energy generation. If grid capacity is restricted through the generation of electricity from large scale infrastructure projects, there is a risk that surplus energy generated from onsite and de-centralised energy schemes may be prevented from being fed back into the grid system. These concerns have been highlighted in the draft response.

8.Financial Implications.

8.1There are no financial implications.

Background Papers

Draft national policy statements for energy – consultation by the Department of Energy and Climate Change (DECC) – Environment and Planning Panel report 5th January 2010

Consultation on proposal to modify electricity supply licence conditions for the purpose of introducing the Feed-In Tariff Scheme (DECC)

Meeting Tomorrow’s Challenge Today: A Climate Change Strategic Framework for Hertfordshire

Hertfordshire Renewable Energy Study

County of opportunity – HertfordshireCounty Council Corporate Plan 2009/12

Appendix 1 - DraftCounty Council Response to the draft National Policy Statements for Energy

Mr Robin Clarke

OPM

252b Gray’s Inn Road

London

WC1X 8XG

County Hall

Hertford SG13 8DN

ContactChris Bearton

Tel01992 556 309

Fax01992 556290

My refFP/CB/ah/

Your ref

11th January 2010

Dear Mr Clarke,

CONSULTATION ON DRAFT NAITONAL POLICY STATEMENTS FOR ENERGY

Thank you for the opportunity to comment on the draft national policy statements for energy.

Hertfordshire County Council supports the reduction of carbon emissions through the generation of energy from greener sources. It is considered that the draft national policy statements do not go far enough in promoting the installation of low carbon or renewable energy generation over conventional fossil fuel energy generation and could go further towards delivering a low carbon future for the UK.

Please find below the views of the County Council on the draft National Policy Statements for energy.

The emerging need for national spatial guidance

When assessing the need for energy in a specific area, the suite of documents relies heavily on market forces to ensure that development comes forward in appropriate locations. There is a risk that a ‘free for all’ approach could result in energy generating capacity outstripping demand. If a market-led approach is unable to balance energy generating capacity with user demand, there is a risk that grid capacity in some areas will be exceeded, which could result in additional, otherwise unnecessary development being required to transfer excess generation to areas of demand. Increasing pressure on the grid capacity in particular areas may also undermine the wider planning objectives for reducing CO2 emissions from the built environment and could impact upon the take up of the feed-in tariff to be introduced later this year. If grid capacity is exceeded through large scale energy generation, there is a risk that surplus energy generated from onsite and de-centralised energy schemes may be prevented from being fed back into the grid system.

Furthermore, the lack of spatial guidance within the document fails to adequately recognise the relationship between energy generating capacity, demand, the location of resources and associated sustainability impacts. This may impact on perceived environmental advantage of certain infrastructure types such as biomass and energy from waste plants which could undermine the Government’s wider sustainability agenda.

Delivery of low carbon and renewable technologies

The suite of policy documents goes some way to providing suitable information to the IPC and other interested parties on the need for new energy infrastructure in the UK. However, in its current form, there is no indicative energy mix for the UK which could allow the generating industry to bring forward infrastructure associated with conventional energy generation without giving any consideration to the development of renewable or low carbon solutions. This in turn could inhibit Local Authorities’ contribution towards meeting renewable energy targets set out in national and regional guidance. Consideration should be given to integrating a prioritisation generating framework into the overarching policy document (EN-1).

The recognition of the importance of Combined Heat and Power (CHP) and the need for the IPC to consider the role of CHP when determining applications is supported. However, the current draft could go further in facilitating the implementation of CHP across the UK by requiring developers to engage with local authorities at the earliest opportunity. Given the time taken to develop an application for significant infrastructure proposals (such as a new power station), the overarching policy statement should require developers to engage with authorities at the earliest opportunity, and not just at the pre-application stage so that regional and local planning authorities can build into planning frameworks, the opportunities for CHP power. This would ensure that any opportunities to maximise the use of CHP are not precluded.

Para 4.6.9 of (EN-1) requires the IPC to consult with local authorities if it is not satisfied on the information provided by developers on the provision of CHP from an energy generating plant. Local authorities should consider the potential use of CHP within its local impact assessment to ensure that the full use of CHP is considered within the decision making process.