§ Mrs. BrintonTo ask the Secretary of State for the Environment, Transport and the Regions (1) what plans he has to increase the share of renewable energy sources in United Kingdom energy consumption; [48894]
(2) what Government incentives will be given to encourage the use and development of renewable energy and energy efficient technologies. [48895]
§ Mr. BattleI have been asked to reply.
The Government are committed to a new and strong drive to develop renewable energy sources. At 30 June 1998, 235 projects, comprising 570 MW (declared net capacity) of renewables generating capacity had been commissioned under the four Non-Fossil Fuel Obligation (NFFO) Orders for England and Wales, two Scottish Renewables Obligation (SRO) Orders and two Northern Ireland NFFO (NI-NFFO) Orders. In addition a further 261 projects comprising 1177 MW of contracted capacity have been made in England and Wales under the fifth Non-Fossil Fuel Obligation (NFFO-5) Renewables Order, which I laid in Parliament on 24 September 1998. The purpose of NFFO Orders is to secure additional generating capacity from renewables in order to help them enter the commercial electricity generating market. NFFO-5 is the first step in our new and strong drive for renewables. I have also launched a consultation document on arrangements for incorporating the development of offshore wind energy into the Non-Fossil Fuel Obligation (NFFO) Order process.
Fossil Fuel Levy support for renewables under NFFO was around £116m in 1997–98. Separately, the DTI's new and renewable energy programme supports research, development, demonstration and technology transfer activities (£11.1m provision for 1998–99). I have already reversed the planned cuts in the renewables R&D budget which the previous Government had made.
Today about 2% of our electricity comes from renewables, mostly from large scale hydro. Non-Fossil Fuel Obligation (NFFO) Orders already laid or in train will add about 3% by around 2003 (equivalent to about a further 1000 MW).
Within weeks of coming into office, I instigated a review to consider what would be necessary and practicable to achieve 10% of UK's electricity needs from renewables by the year 2010 and how renewables can make an effective contribution to meeting requirements for future greenhouse gas reductions. The review, which is nearing completion, is examining the status of all the new and renewable energy technologies and the UK industry and their future prospects in both the home and export markets. It has also been considering what further research and development, and demonstration is needed. I expect to announce the outcome of the review later this year.
The use of energy efficient technologies is encouraged through a range of Government programmes, including the Home Energy Efficiency Scheme, the Energy Efficiency Best Practice Programme, and support for the Energy Saving Trust. The Government will be seeking views on further possible measures within their consultation on climate change later in the year.
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