§ Bob SpinkTo ask the Minister for Women what estimate she has made of the level of new conventional electricity generating plant needed to back up the anticipated increase in wind turbine and other climate-dependent renewable energy sources. [74398]
§ Mr. WilsonEvery electricity system has to have some spare capacity to deal with peaks and troughs in demand. To a considerable extent, this inbuilt flexibility also enables an electricity system to cope, without significant additional cost, with a proportion of intermittent supply alongside a proportion of non-intermittent supply.
I refer the hon. Member to the Appendix to Chapter 7 of the Energy Review produced by the Performance and Innovation Unit of the Cabinet Office (PIU) in February 2002. This reports the outcome of a survey conducted for the PIU on costs associated with intermittent generation.
The consultants employed by the PIU found that, as a rough rule of thumb, while the share of electricity supplies contributed by intermittents (for example, wind energy) remained below about 5 per cent., the system costs would be insignificant. With a share between 5 per cent. and 10 per cent., they estimated that costs might start to rise to about 0.1 p/k Wh. Costs would continue to increase beyond 10 per cent., perhaps rising to about 0.2p/k Wh, should intermittents provide 20 per cent. of electricity.
We are considering the PIU's conclusions, as well as responses to our consultation on energy policy, as we develop the forthcoming Energy White Paper. Work is being undertaken, in particular, to improve our understanding of the complete spectrum of network-related costs arising as the share of supplies provided by intermittents rises above 10 per cent.
Mr. Gareth ThomasTo ask the Secretary of State for Trade and Industry what action her Department is taking to increase access to export credit assistance for overseas renewable energy projects; and if she will make a statement. [74500]
§ Ms HewittThe Export Credits Guarantee Department (ECGD) and the Department of Trade and Industry (DTI) have recently launched an initiative to stimulate and facilitate exports of renewable energy sector goods and services to emerging markets. This Renewables Initiative was announced by my right hon. Friend the Prime Minister on 2 September 2002 in Mozambique on his way to the United Nations World Summit on Sustainable Development.
From April 2003, ECGD will make available cover for at least £50 million of exports each year for projects in the renewables sector which meet its minimum risk standards. ECGD will also support the DTI's Trade Promoters' outreach programme to stimulate exports of renewable energy goods and services to emerging 675W markets. These activities form part of the Government—wide drive to encourage the development of power generation from renewable resources.
It is hoped that this initiative will:
Encourage UK entrepreneurs to develop and then export renewable energy goods and services and to offer them insurance against the risks of nonpayment;Assist more overseas countries to meet their power generation requirements in a sustainable way by providing finance at attractive commercial rates linked to UK involvement;Slow down the onset of, and possibly reduce the impact of, climate change resulting from greenhouse gas generation.
Mr. Gareth ThomasTo ask the Secretary of State for Trade and Industry what the value of export credit assistance given by her Department and associated non-departmental public bodies for renewable energy projects was in each of the last 10 years; and if she will make a statement. [74499]
§ Ms HewittThe figures for the years in which ECGD has supported renewable energy projects since 1992 are as follows:
Year Business Amount £ Million 1993/94 7.8 1994/95 17.1 1995/96 7.7 1996/97 1.4 1997/98 6.4