HC Deb 31 July 1998 vol 317 cc762-3W
Mr. Stunell

To ask the President of the Board of Trade (1) what plans she has to increase the target percentage of electricity to be generated from renewable sources of energy by 2010; [52444]

(2) if she will increase in real terms Government spending on direct research and development of renewable sources of energy; and if she will make a statement; [52433]

(3) how much money she plans to allocate to research into renewable energy technologies in each of the years covered by the Comprehensive Spending Review; [52439]

(4) what is the current level of Government funding of research into (a) offshore wind farms, (b) onshore wind farms, (c) tidal wave power schemes and (d) photovoltaic panels; and what was the value of departmental spending for each in real terms for each of the last four years. [52452]

Mr. Battle

The Government are committed to a new and strong drive to develop renewable energy sources in line with our manifesto commitment. To this end, I am reviewing policy towards new and renewable sources of energy, including consideration of what would be necessary and practicable to achieve 10 per cent. of UK electricity needs from renewables by the year 2010 and how renewables can make an effective contribution to meeting requirements for future greenhouse gas reductions. The review, which is nearing completion, is examining the status of all the new and renewable energy technologies and the UK industry and their future prospects in both home and export markets. It is also considering what further research, development, and demonstration is needed in the longer term. I expect to announce the outcome of the review later this year.

Expenditure on the New and Renewable Energy Programme was cut significantly by the previous Government in the years following publication of their policy and strategy in Energy Paper Number 62, entitled "New and Renewable Energy Technology: Future Prospects for the UK", and further cuts were planned. Expenditure under the Wind sub-programme was reduced from £2.7 million in 1994–95 to £1.2 million (net) in 1997–98. Similarly the expenditure under the Solar sub-programme fell from £2.1 million in 1994–95 to £1.6 million (net) in 1997–98.

Since coming into office, I have reversed the planned cuts in the overall programme budget set by the previous Government, increasing provision for 1998–99 by £2 million to £11.1 million (net). For Wind and Solar energy, expenditure in 1998–99 can be expected to remain broadly in line with that in 1997–98, subject to project recruitment and progress. No expenditure on Tidal energy is expected in 1998–99 following the previous Government's earlier decision to close that programme. Beyond 1998–99 expenditure will depend on the outcome of the current policy review.

Mr. Redwood

To ask the Secretary of State for Trade and Industry (1) if he will make a statement on Government policy on renewable energy; [54109]

(2) what plans he has to remove the special treatment offered to renewable energy. [54656]

Mr. Mandelson

The Government are committed to a new and strong drive to develop renewable energy sources in line with our manifesto commitment. To this end, I am reviewing policy towards new and renewable sources of energy, including consideration of what would be necessary and practicable to achieve 10 per cent. of UK electricity needs from renewables by the year 2010 and how renewables can make an effective contribution to meeting requirements for future greenhouse gas reductions. The review, which is nearing completion, is examining the status of all the new and renewable energy technologies and the UK industry and their future prospects in both home and export markets. It is also considering what further research, development, and demonstration is needed for the longer term. I expect to announce the outcome of the review later this year.

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