§ Mr. Andrew StunellTo ask the Secretary of State for Environment, Food and Rural Affairs how much(a) direct and (b) indirect Government financial support was given to the combined heat and power industry in each year since 1990. [82798]
§ Mr. Morley[holding answer 27 November 2002]: Estimated direct financial support to the CHP industry, in the form of spend on research, demonstration and development, since 1990 is:
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£ million 1990–91 0.3 1991–92 0.3 1992–93 0.3 1993–94 0.4 1994–95 0.5 1995–96 0.5 1996–97 0.7 1997–98 1.0 1998–99 1.3 1999–2000 1.9 2000–01 2.5 2001–02 2.8 The 2001–02 figure includes around £0.4 million in development grants from the new Community Energy programme, most of which benefits CHP. In the current financial year, £3.3 million of capital grants from the programme have been approved to date.
In addition, the Carbon Trust receives around £50 million per annum in total from which it provides direct support for CHP through its ActionEnergy Scheme and for research, development and demonstration of CHP through the Low Carbon Innovation Programme.
Several indirect measures of support for the CHP industry were also introduced in 2001–02. Of those that can be enumerated, climate change levy exemption on fuel inputs to Good Quality CHP and Good Quality CHP electricity outputs were valued at up to £90 million, while eligibility for Enhanced Capital Allowances is worth in the region of £10 million per annum to the industry. In addition, CHP is one of the measures that operators who are participants in Climate Change Agreements are encouraged to use to meet their targets and therefore qualify for the 80 per cent, reduction in Climate Change Levy.