HC Deb 02 November 1995 vol 265 cc439-40W
Mr. Gallie

To ask the Secretary of State for Scotland if he is in a position to make a statement for a second round of bidding under the Scottish renewables obligation. [41845]

Mr. Kynoch

Following a consultation exercise earlier this year about the first order, the proposed second order would oblige ScottishPower and Hydro-Electric to secure more—about 70 to 80 MW—of their output from renewable sources. The consultation exercise showed broad support for the Government's approach to developing renewable energy.

The first order led to 30 quality renewables projects with a total capacity of 76 MW securing contracts with ScottishPower and Hydro-Electric. I am now minded to make a second order under the Scottish renewables obligation in 1996. I hope that this proposed second order will again attract technically sound and innovative projects which will be even more competitive on price. If so, the second order is likely to be about the same size as the first. I see this as an opportunity for the renewables industry to show that it is responding to the challenges which it faces.

My Department will be issuing further guidance shortly for prospective applicants. The two Scottish public electricity supply companies are currently assembling information and guidelines for parties interested in submitting schemes into SRO2. Applicants are invited to make contact now with the relevant Scottish company ie the one in whose area the development is proposed, to discuss any aspect of the process.