§ Mr. StunellTo ask the Secretary of State for Trade and Industry what was the total level of Government financial support to the renewable energy sector in each306W year since 1990, broken down by (a) research grants, (b) renewables obligation, (c) non-fossil fuel levy and (d) other sources. [12790]
§ Mr. Wilson[holding answer 7 November 2001]: The information is set out in the table.
The new Renewables Obligation, to be introduced next year, together with the exemption of renewables from the Climate Change Levy, will create a long-term market for renewables which will be worth over £1 billion per year by 2010.
The obligation will be underpinned by direct Government funding for renewables worth over £260 million between 2001 and 2004. This will include an extensive capital grants programme for the early development of offshore wind and energy crops, the initial stage of a major photovoltaics demonstration programme and a boost for research and development.
307W
Support for the renewables sector £ million Year (a) (b) (c) (d) Research grants1 Renewables obligation2 Non fossil fuel levy3 Other (capital grants)4 1990–91 21.3 — 6.1 — 1991–92 24.8 — 11.7 — 1992–93 26.6 — 28.9 — 1993–94 26.8 — 68.1 — 1994–95 20.5 — 96.4 — 1995–96 21.6 — 94.5 — 1996–97 18.5 — 112.8 — 1997–98 15.9 — 126.5 — 1998–99 14.4 — 127.0 — 1999–2000 14.9 — 656.4 — 2000–01 15.9 — 664.9 — 2001–02 524.0 — 6,754 — 2002–035 27.6 2282.0 8— 460 2003–045 29.0 2405.0 8— 4131 1 Direct Government funding for research and development on renewable energy through the DTI's own Sustainable Energy Programme and through the Research Councils via the Science Budget. 2 Estimated maximum payments available under the Renewables Obligation for England and Wales and the corresponding Renewables Obligation (Scotland). Actual payments will depend on how much renewable energy capacity comes forward at any time. The costs will be met by licensed electricity suppliers who are expected to pass them on to consumers. Proposals for introducing the Obligation are shortly to be placed before Parliament. There may be some payments under the Obligation in the last quarter of 2001–02 depending on the precise date of implementation of the Obligation.
3 Expenditure through NFFO, SRO and NI-NFFO funded by the electricity consumer through the Fossil Fuel Levy in Great Britain and variant arrangements in Northern Ireland.
4 Provisional commitment profile for capital grants for offshore wind, energy crops and other areas highlighted in the Prime Minister's announcement of 5 November 2001. Actual spend will depend on the rate at which capacity comes forward.
5 Estimates.
6 Expenditure through NFFO falls from 1999–2000 on because NFFO 1 and 2 contracts came to an end in December 1998.
7 Actual to 30 September 2001.
8 Up to date estimates not available. Non Fossil Fuel Levy spend in future years is highly dependent on the impact of the introduction of Renewables obligation and of proposed new NFFO flexibility provisions. We anticipate that the costs of the Fossil Fuel Levy following the introduction of the Renewables Obligation will decline substantially.
Note:
Renewable energy also benefits from exemption from the Climate Change Levy which came into force from April 2001.