§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry what percentage of electricity produced in the last year for which figures are available came from renewable sources. [58716]
§ Mr. Battle[holding answer 11 November 1998]: In 1997 electricity generated from renewable sources accounted for just over 2 per cent. of total UK electricity generation. Through the contracts granted under NFFO-5 and previous NFFO rounds, taken with existing large hydro capacity, that figure is expected to rise to 5 per cent. by about 2003. We have set ourselves the target of achieving a figure of 10 per cent. by 2010.
§ Mrs. BrintonTo ask the Secretary of State for Trade and Industry what research he has(a) commissioned and (b) evaluated concerning the effect on employment of increasing spending on Government research and development on renewable energy. [59773]
§ Mr. BattleMy Department has not commissioned specific work in this area, but the UK renewables industry is currently estimated to employ around 3,500 people directly. Some of these jobs have resulted from the DTI's New and Renewable Energy Programme and the EPSRC's parallel R&D programme, but the majority have been created as a result of contracts placed with suppliers of electricity from renewable sources under the Government's Non-Fossil Fuel Obligation. If spending on R&D in this area were increased as a result of the current 425W review of policy on renewable energy then we might expect to see a modest increase in jobs in the industry, research organisations and consultancies.
The development and deployment of renewables is likely to lead to further job opportunities. The EU White Paper on Renewables estimates that a doubling of the proportion of the Community's energy to come from renewables to 12 per cent. would create at least 500,000 jobs in the EU by 2020.
§ Mrs. BrintonTo ask the Secretary of State for Trade and Industry (1) when the review of renewable energy sources is to be published; [59769]
(2) if the review of renewable energy sources will consider longer term and higher targets than the present one; [59770]
(3) if the review of renewable energy sources will consider whether electricity supply companies should be obliged to purchase a certain percentage from renewable sources; [59771]
(4) what estimate he has made of the extent to which the target of 10 per cent. of electricity from renewable sources could be met from offshore wind energy alone. [59772]
§ Mr. BattleAs part of the renewables policy review my Department is examining what contribution new and renewable energy technologies could make in the UK, what role UK industry might have in home and export markets, and the contribution renewables could make in achieving our national and international commitments for greenhouse gas reductions. I am looking at both the timescale to 2010, and laying the foundation for an expanding contribution in the longer term. I expect to make an announcement about the review later this year.
To achieve an aim of 10% electricity from renewables would require 3-4 Gigawatts (GW) DNC (Declared Net Capacity) of additional renewable capacity beyond that secured under the current NFFO arrangements. It would require significant contribution from wastes, including landfill gas; onshore wind; offshore wind; and energy crops. Small scale hydro could also be expected to continue making a smaller but important contribution. Decisions on the proportions that these technologies might contribute to meeting a 10% target would be made progressively in the light of experience and further developments in the market.
Under the Non-Fossil Fuel Obligation (NFFO) Public Electricity Suppliers are already required to buy a defined amount of electricity generated by renewable sources. We are also working with renewable energy generators to encourage them to take advantage of the liberalised market and to take up the opportunity for 'green electricity' trading.
The renewables policy review will reflect the outcome of our current consultation on the future of gas and electricity regulation. Our proposals for the future of regulation are contained in "A Fair Deal for Consumers; Modernising the Framework for Utility Regulation" and include separate licensing arrangements for electricity supply and distribution, new electricity trading arrangements. We are considering in parallel how NFFO might be adapted to the new circumstances.