Renewable Energy Policy (Hansard, 13 April 1999)

§ Mr. Battle

I refer my hon. Friend to my written answer of 30 March 1999,Official Report, columns 577–78, to my hon. Friend the Member for Bury, North (Mr. Chaytor) in which I announced the publication paper "New and Renewable Energy—Prospects for the 21 Century", which reports on the outcome of the Government's review of new and renewable energy policy.

The Renewables Review paper demonstrates that there is considerable potential for renewables to become a fully competitive part of UK energy supply, and to make an important contribution to secure, diverse and sustainable energy supplies in the UK. They are an essential element of a cost-effective climate change programme and will help the Government meet their environmental objectives at the least cost to the customer. Renewables play a vital role in enabling us to meet our environmental targets of reducing greenhouse gases by 12.5 per cent. by 2012, and our goal of reducing carbon dioxide emissions by 20 per cent. by 2010.

The document shows that producing 10 per cent. of UK electricity from renewables appears to be feasible. The Government intend working towards a target of renewable energy providing 10 per cent. of UK electricity supplies, cost effectively, as soon as possible. I want to achieve this by 2010. However, this should not be seen as an end in itself, but a step forward on the road to making renewables a strong, world-beating industry. There are already considerable benefits of the renewables industry. The UK industry employs 3,500 people. Through creating an export drive, and by further developing the industry and the UK market, up to 45,000 jobs could be created.

This report identifies key issues and challenges which the Government and industry would need to pursue. Issues examined in the paper include: planning arrangements; opportunities for developing energy crops; and arrangements to ensure that embedded generators (those directly connected to local distribution systems, often the case with renewables producers) receive a fair price for their electricity. It seeks views on the issues raised to enable the Government to frame its future policy.

I look forward to receiving those views and plan to make a further announcement about our way forward in due course. The Government are committed to encouraging sustainable development, to ensure a better quality of life for us and our children.