§ Mr. SayeedTo ask the Secretary of State for Environment, Food and Rural Affairs what steps the Government have taken to promote renewable forms of energy in the United Kingdom in the last three years; and if she will make a statement. [8085]
§ Mr. WilsonI have been asked to reply.
In the last three years my Department has taken a number of steps to promote renewable forms of energy in the United Kingdom. Renewable sources of energy have received support of around £208 million over the last three years under the Non-Fossil Fuel Obligation (NFFO) arrangements. As of 31 March 2001, 366 NFFO projects had been commissioned, representing an installed capacity of around 934 MW (declared net capacity). In addition, my Department's Sustainable Energy Programme has invested a further £36.9 million into R&D activities. Indeed, the period from 1998–2001 saw my Department's budget for renewables rise from £9.7 million to £18 million in the current financial year.
We are now looking to continue to accelerate the development of renewables across a wide range of sources and technologies. We are about to introduce the new Renewables Obligation which will oblige all licensed electricity suppliers to supply a specified and growing proportion of their electricity from renewable sources. Our target for the Obligation is that 10 per cent. of licensed electricity supplies will be generated from eligible renewable sources by 2010.
The introduction of the Renewables Obligation will create a long-term market expected to be worth over £1 billion per year by 2010. Direct government funding for the financial years 2001–2004 will be worth over £260 million and will fund a range of initiatives including my Department's R&D programme, extensive capital grants for offshore wind and energy crops, and a photovoltaic demonstration programme.