§ Mr. SpellerTo ask the Secretary of State for Energy at what level of energy cost long-shot renewable energy technology becomes a viable prospect for the purposes of his Department.
§ Mr. Michael SpicerThe original aim of the Department's renewables research and development programme, which was initiated in 1974, was to assess the potential contribution that all the renewable technologies could make to United Kingdom energy supply. That objective was largely achieved by 1985, and the broad aims of the Department's programme now are to encourage the uptake of those renewable technologies that have been shown to be commercially attractive and to increase our understanding of the economics of those that are "promising but uncertain". Technologies which are now classed as "long-shot technologies" have in most cases already been the subject of considerable R and D investment during the first phase of our work in this area. They have been classed as "long-shot technologies" because on all reasonable expectations about future fuel prices and about the minimum likely cost of exploiting the energy source once the technology has been developed, they are not expected to make an economic contribution to our future energy supply—under a wide range of economic scenarios—and on the time scale considered (2030).
A watching brief is maintained on all the "long shots" and if, as a result of new ideas or new information, it is judged that a particular technology could possibly make an economic contribution it would be reclassified as "promising but uncertain". As yet, this has not happened. Regular reviews of both the economic and technical potential of all the renewable technologies are carried out as part of our programme. The latest of these reviews was 503W carried out in 1987 as part of a comprehensive appraisal of United Kingdom energy research, development and demonstration. This appraisal was published as energy paper 54, copies of which are in the Libraries of the House.