HC Deb 09 July 2003 vol 408 cc791-2W
Mr. Jim Cunningham

To ask the Secretary of State for Trade and Industry if she will make a statement on the(a) cost and (b) level of provision of electricity generated by (i) coal-fired power stations and (ii) environmentally friendly sources. [123363]

Mr. Timms

Electricity generation from coal in the United Kingdom in 2002 amounted to 124.4 TWh, equivalent to 32 per cent. of total UK generation. Electricity generation from renewables and wastes amounted to 11.4 TWh, equivalent to 3 per cent. of total UK generation. Most recent estimates of generation costs from different types of plant are contained in a report, "Long-Term Reductions in Greenhouse Gas Emissions in the UK" by an Inter-departmental Analysts Group (IAG) which was published in February 2002. A copy of the IAG report is in the Libraries of the House.

Mr. Jim Cunningham

To ask the Secretary of State for Trade and Industry what efforts are being made to encourage the use of electricity generated by environmentally friendly plants. [123364]

Mr. Timms

The Government have put in place a range of measures to promote and encourage the use of energy from environmentally friendly plants using renewable forms of energy.

Chapter four of the Energy White Paper "Our energy future—creating a low carbon economy" sets out the Government's policy on the increasing role renewable technologies will play in our overall energy policy, and highlights many of the successes that have already been achieved.

We have put in place a framework of measures to encourage the renewables generation and supply industry: our target is that 10 per cent. of the UK's electricity sales should be from renewable-sourced electricity by 2010. To help achieve the necessary growth to reach that target, we have introduced a range of important measures: The Renewables Obligation (and associated Renewables Obligation Scotland). Introduced in April 2001, these require all licensed electricity suppliers in Great Britain to supply a specified and growing proportion of their sales from renewable sources. The Obligation is underpinned by a package of funding worth nearly £350 million, which will support our ongoing New and Renewable R and D programme, and extensive programmes of capital grants for new and emerging technologies such as energy crops and other forms of bio-energy, offshore wind, solar photovoltaics, wave and tidal power. In order to develop our offshore wind potential, last year we published a consultation entitled "Future Offshore", which sets out a strategic framework to support the development of that industry. That document proposed that future development should take place in three strategically significant areas—namely the north-west (including Liverpool Bay), the Greater Wash and the Thames Estuary. The Renewables UK unit was set up last year with the specific aim of maximizing the benefits of renewables to UK industry, and to help that industry develop. Industrial users of renewable sourced electricity also benefit from exemption from Climate Change Levy payments. A proportion of the proceeds from the Climate Change Levy contributes to the New 2 Renewable R and D programme.