§ Ms ShipleyTo ask the Secretary of State for Trade and Industry (1) if the proposed renewables obligations fund over three years includes research into the nuclear option; [45178]
(2) what proportion of the renewables obligation fund is earmarked for (a) solar voltaics, (b) offshore wind and (c) tidal and/or sea powered power generation. [45179]
§ Mr. WilsonThe renewables obligation will require licensed electricity suppliers to demonstrate through a system of renewables obligation certificates (ROCs) that they have bought a specified proportion of their electricity from renewable sources. Alternatively, suppliers may meet their obligation through the independent market purchase of ROCs. The renewables obligation will thus provide a substantial market incentive for the UK renewable energy industry as a whole. Electricity suppliers will be free to choose the sources of renewable electricity that enable them to meet their obligation most cost-effectively.
Suppliers who do not present the required number of ROCs will be required to make a buy-out payment corresponding to the extent that their purchases of renewable electricity fall short of the specified amount. The buy-out price will be set initially at 3 pence per kilowatt hour. The proceeds from the buy-out payments will be recycled to suppliers in proportion to the number of ROCs presented. The recycling of the buy-out payments will thus provide an extra incentive to suppliers to meet their obligation.
Separately from the operation of the renewables obligation, the Government are providing over £260 million over the three-year period to March 2004 for the direct support of renewable energy initiatives, including capital grants for early demonstration schemes, and research grants.
Of this direct support money, £20 million has been specifically allocated to solar photovoltaics (PV), £74 million to offshore wind, and £5 million to wave and tidal energy; in addition, finance for research and development projects in these areas will be available through the DTI's Sustainable Energy Programme and through the Research Councils.
The Government do not currently fund nuclear fission research and development, but are currently active participants in a range of international forums that cover nuclear fission including the OECD's Nuclear Energy Agency (NEA), the International Atomic Energy Agency (IAEA), the EU's Euratom Framework Programme and the Generation IV initiative.
§ Mr. EvansTo ask the Secretary of State for Trade and Industry if she will make a statement on plans to utilise renewable energy sources within Wales. [44042]
§ Mr. WilsonThe Government's role in the promotion of renewable energy is to set the framework but leave the market to decide on the type and location of projects to be pursued.
The Renewables Obligation will apply to Wales and England (with a corresponding arrangement in Scotland), providing an assured market for renewables until 2027. 700W Subject to parliamentary approval, we anticipate that the Renewables Obligation will come into effect on 1 April 2002.
Consent for projects under 50 MW, except offshore wind, is normally a matter for local determination. For larger projects in Wales as in England, I have the appropriate consent powers, which are exercised after extensive consultation with all interested parties, including the Welsh Assembly Government.
Wales has much potential for renewable energy projects. The regional assessment conducted for Wales indicated that Wales could deliver between 4 per cent. and 13 per cent. of the UK Renewables Obligation target. It also said:
Whether the higher end of the target range is reached will depend almost entirely on the deployment of wind energy and biomass schemes".