Renewable Energy (Hansard, 10 June 1997)

§ Mr. Battle

The Government propose to undertake a new and strong drive to develop renewable energy sources in line with our manifesto commitment. To this end I anticipate reviewing policy including considerations of what would be necessary and practicable to achieve 10 per cent. of UK's electricity needs from renewables by the year 2010 and how renewables can make an effective contribution to meeting requirements for future greenhouse gas reduction commitments. I will make a further announcement in due course. In the meantime the Government's new and renewable energy programme, currently underway will continue. I have already announced that I will initiative shortly a consultation exercise with the relevant trade bodies of the renewable energy industry, OFFER, and the Regional Electricity Companies on a fifth Non-Fossil Fuel Obligation (NFFO) Order for renewable energy in England and Wales, leading to an announcement later in the year.

The reduction in the rate of the Fossil Fuel Levy from 3.7 per cent. to 2.2 per cent. with effect from 1 April 1997 was due to reduced payments to the nuclear industry. The reduction had no effect on the level of support for renewable energy projects.

Over the coming months the Government will be considering the balance of activities within the spending plans it inherited to ensure that they reflect the Government's priorities. The results of my reviews of NFFO 5 and renewable energy policy will be fed into this wider exercise. The Department's expenditure plans for the Government's renewable energy; nuclear; clean coal; oil and gas; and environment programmes for the three year's 1997–98 to 1999–2000 may be found on page 37 of "Trade and Industry: The Government's Expenditure Plans 1997–98 to 1999–2000". A copy of the Plans is available in the Library of the House. Historical expenditure information on the Government's wind, solar and wave programmes is also available from my Department.

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