Renewable Energy (Hansard, 19 December 1990)

§ Mr. Wakeham

[pursuant to the reply, 19 November 1990, c. 7]: In announcing the initial order setting a non-fossil fuel obligation for renewable sources of energy, I noted that a number of projects had proved not yet ready to meet the requirements of the legislation. To give these projects, and any others, an early opportunity to go forward, I have decided to make a second order setting a non-fossil fuel obligation for renewables in 1991. This will specify levels of renewables-sourced electricity generating 161W capacity required to be available to the regional electricity companies, in addition to those required under the initial renewables order (SI 1990 No. 1859), during the period from 1 January 1992 until 31 December 1998.

Before making the order I shall, as required under the legislation, consult the regional electricity companies and the Director General of Electricity Supply.

However, I currently have it in mind that the new order should be set at a level which will require the regional electricity companies to enter into contracts for some 150 to 200 MW DNC of generating capacity. I also have it in mind to introduce separate bands within the order for landfill gas, hydro, waste incineration and wind. This would give each of those technologies an opportunity to make a contribution to the capacity required under the order, and so would promote the Government's objective of stimulating the development and application of renewable sources of energy which have prospects of being economically competitive and environmentally acceptable.

I shall determine the size of the bands, in the light of bids by generators and after the statutory consultations, at a level to strike an appropriate balance between diversity of renewable generating technologies and the cost to the electricity consumer. I may decide, in the light of the consultations, to omit a band or to combine two or more bands. However, I currently have it in mind that the bands, and the band sizes, should be as follows:

	MW DNC
Wind power	25–50
Hydro	5–10
Landfill gas	30–60
Municipal and general industrial waste incineration	50–100
Others (eg. sewage gas, combustion of special waste)	15–30

The bands adopted for the 1991 renewables order will be without prejudice to the format of the further renewables orders that the Government intend to introduce during the 1990s.

My Department, in consultation with the RECs and the Office of Electricity Regulation, has reviewed the procedures for making NFFO orders in the light of the experience gained from the first one. A number of those consulted thought it important that the timetable should be less compressed.

Against this background I propose to make the next order, and to lay it before Parliament, in the autumn of 1991. I understand that the RECs will begin the process of selecting projects in the new year, when they will announce the procedures that they propose to adopt.

My Department is publicising these proposals through "Renewables Energy Bulletin No. 4", a copy of which I am placing in the Library of the House.