§ 2.56 p.m.
§ Lord Campbell of Croy asked Her Majesty's Government:
§ What assistance they are giving to schemes to develop power from waves to generate electricity.
504§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)My Lords, John Battle, the Minister for Energy and Industry, announced on 30th March that the Government were launching a new wave energy programme. More broadly, Mr. Battle also announced publication of a consultation document entitled New and Renewable Energy—Prospects for the 21st Century, reporting on the outcome of the Government's review of new and renewable energy policy, including wave energy, and seeking views on the proposals contained in the consultation document. Wave energy has also been boosted by its inclusion in the third order under the Scottish renewables obligation, where three projects have been awarded contracts.
Lord Campbell of CroyMy Lords, I am grateful to the noble Lord for his reply. Is government support being provided? I ask that because it is estimated that the cost of generating electricity from waves has decreased significantly, and because of the environmental advantages.
§ Lord Sainsbury of TurvilleMy Lords, wave energy research was stopped in 1994 because of cutbacks in the amount of money for renewable energy research. Since then further work has been done. Although wave energy generation is clearly for the long term, it is felt that it should be part of the research that we undertake. As regards costs, this method remains extremely expensive as compared with the alternatives.
§ The Earl of LauderdaleMy Lords, will the Government say when this report will be made public, and will it distinguish—as it should—between wave energy and tidal energy?
§ Lord Sainsbury of TurvilleMy Lords, we are talking here about wave energy rather than tidal energy. As regards the two reports, the consultation document has already been made available; that is, the one I have already mentioned, New and Renewable Energy—Prospects for the 21st Century. A report from the Foresight Marine Panel, entitled Energies from the Sea: Towards 2020, also makes the case for wave energy.
§ Baroness Miller of HendonMy Lords, although I believe it is generally agreed that wave energy is an excellent source of renewable energy, as the Minister indicated, the cost of that is somewhat prohibitive at the present stage of technology. Will the Minister say why the Government continually set their face against gas-fired power stations which are both economical and environmentally friendly?
§ Lord Sainsbury of TurvilleMy Lords, what we are discussing here is a programme for renewable energy research which is looking at the future. Although, under the third Scottish renewables obligation, the cost was about 6p or 7p, this is felt to be a good investment for the future. I was asked about gas-fired stations, which we have discussed on a number of occasions. That is a separate question and relates to the right speed for going 505 into that programme. It is still the case, as I have made clear to the House before, that currently the marginal cost of coal-fired stations is lower.
Viscount AddisonMy Lords, can the noble Lord say whether there will be a greater use of tidal energy as opposed to wave energy? Many noble Lords live next to rivers and see a tremendous amount of water running past. It seems a shame that many of the old mills cannot be brought back into operation as they could generate enough electricity to supply villages around the country. I should like to see some support from the Government to that end.
§ Lord Sainsbury of TurvilleMy Lords, it is obviously a question of priorities but it is felt at this point that wave energy is the best option. There have been proposals on tidal energy but they involve huge capital costs which at this point preclude their consideration.
§ Lord Hughes of WoodsideMy Lords, did I misread the newspapers last week when I thought I read that the Government had just approved a gas-fired power station in Wales? If that is the case, is it not about time that the Front Bench opposite also read the newspapers?
§ Lord Sainsbury of TurvilleMy Lords, far be it from me to comment on the reading matter of noble Lords on the other side of the House, which I am sure is a proper kind of reading and included that point.
§ Lord EzraMy Lords, the Question relates specifically to wave energy but the efficient use of all forms of energy and the reduction of emissions from energy production are also relevant points. Will the noble Lord confirm that in the case of coal, for example, the Government still intend to proceed with ways in which coal can be used more efficiently while at the same time reducing emissions?
§ Lord Sainsbury of TurvilleMy Lords, I can confirm that. The noble Lord will have noticed that with the climate change levy there is a proposal for a fund of another £50 million which will provide more support not only for renewable energy, but also for projects involving greater energy efficiency.
§ Lord SkelmersdaleMy Lords, the Minister mentioned three contracts that have been awarded under the SRO. Does he expect those to come to fruition? One of the great problems with both the non-fossil fuel obligation in England and Wales and the SRO in Scotland is that many projects do not come to fruition and therefore the contracts are abandoned.
§ Lord Sainsbury of TurvilleMy Lords, we expect those contracts to come to fruition, but such projects involve a speculative element. Before such a contract comes into being time is allowed to enable people to put the project together.
Lord Campbell of CroyMy Lords, are experiments or trials being planned or carried out at other marine 506 sites besides the island of Islay, where the present experiment in wave energy is continuing, in view of the extra amount of money available from the renewables obligation in Scotland, to which the noble Lord referred, and the non-fossil fuel obligation which applies in England and Wales?
§ Lord Sainsbury of TurvilleMy Lords, we look at projects from other parts of the country. but the fact is that, in this as in many other matters, Scotland leads the way by having bigger and more waves. That makes it a very suitable place for this kind of project.
§ Lord Mackay of ArdbrecknishMy Lords, as I was canvassing last week for the Scottish parliamentary elections, I missed the announcement of the gas-fired power station in Wales. First, can the Minister say where it is in Wales? Secondly, if wave energy is such a good idea on Islay, why has the Secretary of State turned down a planning application for a wind farm in Kintyre?
§ Lord Sainsbury of TurvilleMy Lords, wind power is a completely different issue. Like all forms of energy, it has its fierce opponents. There is also the very important issue of visual pollution, which I am sure was given due regard.
§ Lord Mackay of ArdbrecknishMy Lords, will the noble Lord answer my first question?
§ Lord Sainsbury of TurvilleMy Lords, I thought that had been made clear by my colleague shouting out the answer.