§ Mr. Gareth R. Thomas (Harrow, West), I beg to move,
That leave be given to bring in a Bill to establish a sustainable energy agency to promote renewable energy generation and encourage energy efficiency; and for related purposes.The case for a sustainable energy agency involves three elements—more jobs, lower energy costs and significant reductions in carbon dioxide emissions. Sustainable energy is more labour-intensive than the more conventional fossil fuel and nuclear energy industries. Investment in energy efficiency, such as combined heat and power—CHP—and some renewable energy investment, including net metering, will help to lower business and domestic energy costs, which is especially important for those who suffer from fuel poverty.As more than two thirds of the United Kingdom's carbon dioxide emissions come from non-transport energy production, sustainable energy has a key role to play in reducing the threat of climate change. Sustainable energy is the proof that economics and the environment mix, and that markets can achieve environmental solutions while delivering crucial economic and social benefits too. An agency would champion the drive to increase our renewable energy capacity, promote energy efficiency and facilitate CHP development in order to meet Government targets and build on the excellent renewables review, the positive work of the Energy Savings Trust and the coming climate change levy.
The agency would be a non-departmental public body, accountable to Government and the House, co-ordinating funding, research and business advice, acting as a resource point for other Government Departments and statutory bodies, able to argue for sustainable energy options and providing a focal point for the development of our domestic sustainable energy industry.
Sustainable energy agencies are not new. The Green Alliance, whose report provided some of the background to the Bill, highlighted the sustainable energy development authority, or SEDA, in New South Wales, and Novem, the Netherlands agency for energy and the environment.
SEDA has promoted the commercialisation and increased use of sustainable energy technologies. Novem' s role has been to bring together all the stakeholders involved in energy efficiency to stimulate energy efficiency techniques and technologies. It has been a key factor in the Netherlands' success in doubling its long-term energy efficiency rate. SEDA's green power accreditation scheme and energy smart business programme have locked in 180 new partners and the investment of more than 31 million Australian dollars in energy efficiency, and have stimulated rapid growth in the Australian solar and wind energy industries.
We, however, are a long way from making a reality of our sustainable energy potential. The United Kingdom generates just 2 per cent. of its energy from renewable sources. To reach our target of 10 per cent. of electricity from renewables by 2010, about 500 MW of new capacity would need to be brought on-line every year for the next decade. On the trends of the past five years, that would be challenging, to put it mildly.
380 Although the NFFO—non-fossil fuel obligation—process has been extremely successful in driving down the costs of renewable energy, the actual level of installed capacity has been disappointing.
One of the major obstacles to promoting renewables, energy efficiency and CHP is the confusing institutional set-up for sustainable energy. The Green Alliance charted 15 different Government-funded institutions or initiatives, many of them doing an excellent job within their specific remit, ranging from Government Departments, quangos and research agencies through to private sector companies.
A key reason for such fragmentation is that the institutions have developed on an ad hoc basis in response to new policy goals over time. There is no single cohesive body offering a clear message which brings together government, academics and industry to co-ordinate the delivery of energy efficiency, renewables and CHP policy. Some, but not all, of the technologies have their own separate trade associations. A sustainable energy agency would help to deliver joined-up thinking and partnership, working across Whitehall and with other players to develop a strong sustainable energy industry.
There is huge potential in Britain. The energy technology support unit—ETSU—estimated that the cost-effective energy efficiency potential equalled 11 per cent. of projected energy demand in 2010. In offshore wind alone, Britain has enough potential to support our electricity needs three times over.
For industry to have the confidence to invest in renewable capacity in the UK, it must have confidence in the stability of local conditions, the regulatory position must improve, and industry must have confidence in the organisations with which it deals. A sustainable energy agency would help to lock in that stability and expertise to grow our domestic sustainable energy industry.
As part of its work programme, the agency would be well placed to co-ordinate a strong export programme to increase Britain's share of world markets, which for wind and solar now approach £1 billion a year each. Both markets are set to double over the next three years—a rate of growth comparable to sales of mobile phones and internet services. Mark Moody Stuart, chairman of the British arm of Shell, stated in his annual report to shareholders last year:
Renewable energy sources—wind, biomass and solar—could be supplying a tenth of the world's energy by 2020 and half by 2050.I am told that Shell's research predicted a quadrupling of the demand for electricity by 2050. That, by any definition, is a sizeable potential market. The European Union White Paper on energy stated that doubling the share of renewables in Europe alone would create between 500,000 and 900,000 new jobs. The small wind energy industry has already created more than 30,000 jobs in Europe.We in Britain lead the world in a number of renewable technologies—for example, in wave power and in certain forms of biomass. A sustainable energy agency would be ideally positioned to facilitate, in partnership with Departments and perhaps using climate challenge fund resources, powerful programmes to exploit our renewables potential in world markets.
There are, too, many sustainable energy options that are local, small-scale and supported, or perhaps even part-owned, by local communities. A sustainable energy 381 agency would not only be able to promote the interests of the larger renewables and CHP players, but could help to facilitate easier access to the grid for smaller renewables providers.
In May 1997, Greenpeace, together with the Peabody Trust, installed 30 solar panels on three low-income homes in Silvertown in London. Each home was projected to save a third off its electricity bill—about £60 a year. London Electricity offered the tenants less than 3p per kilowatt hour for the electricity they exported to the grid while charging them 8p per kilowatt hour when they needed electricity from the grid. That, together with the insistence that new meters be installed to measure the exported electricity, would have brought about the daft scenario of the tenants owing money to the LEB for the privilege of exporting electricity to its grid.
Net or reversible metering solutions could be promoted by a sustainable energy agency to help to resolve that type of market disincentive. Such an agency could also develop programmes to help to educate young people about sustainable energy and to help City investors to understand the industry. It could act as a source of advice for those, such as Grimsdyke first and middle school in my constituency, who are applying to be part of the Department of Trade and Industry's Scolar programme and looking for the necessary matched funding.
A sustainable energy agency is strongly supported by industry. British BioGen, the biomass trade association, offered unequivocal support, and the British Photovoltaic Association said, "Please highlight our support for the creation of a sustainable energy agency." The British Wind Energy Association also offered support in principle. The director of the Combined Heat and Power Association said:
Creating an agency dedicated to the task of securing the deployment of sustainable energy should be a key part of the UK's modernisation agenda.Sustainable energy offers the combination of significant environmental benefits and huge economic and social benefits—more jobs, lower costs and reduced carbon dioxide emissions—but some people still seem to think of renewables as the realm of only the lentil-eating, kaftan-wearing, open-toed sandal brigade. I am sure that the odd lentil still gets eaten, but the open-toed sandal and kaftan wearers—if they were ever there—are long gone and have been replaced by sharp-suited, dynamic and visionary entrepreneurs. The sustainable energy industry's time has come. An agency would help to turn tremendous potential into reality.Question put and agreed to.
Bill ordered to be brought in by Mr. Gareth R. Thomas, Mr. Paul Clark, Mr. Tony Colman, Mr. Frank Cook, Mr. Cynog Dafis, Mr. Clive Efford, Mr. Jim Fitzpatrick, Mr. Andrew Reed, Angela Smith, Mr. Andrew Stunell, Mr. Stephen Twigg and Dr. Alan Whitehead.