§ Dr. KumarTo ask the Secretary of State for Trade and Industry (1) if he will commission a study of the potential of the UK manufacturing skill base to capture a proportion of the market for offshore wind energy turbines; [76164]
(2) what plans he has to develop a medium to long term strategy for the UK's renewable energy technologies; and what assessment he has made of the industry's ability to compete (a) globally and (b) with Denmark in the supply of offshore wind energy technology. [76166]
§ Mr. BattleThe Government are committed to a new and strong drive to develop renewable sources of energy and has undertaken a review of the status and prospects for renewables, including offshore wind energy. As a first step towards that policy the fifth and largest Non-Fossil Fuel Obligation (NFFO-5) Order of 1,177 MW was announced on 24 September 1998.
For the future the Government have been reviewing what would be necessary and practicable to achieve 10 per cent. of the UK's electricity needs from renewables by 2010, and what contribution new and renewable energy technologies might make to future greenhouse gas commitments.
To achieve 10 per cent. electricity from renewables would require 3–4 Gigawatts (DNC) of additional renewable capacity over and above that in place or likely to be commissioned from existing NFFO arrangements. It would require the use not only of technologies which have formed the mainstay of NFFO to date, such as waste, including landfill gas and onshore wind but also a significant contribution from offshore wind and energy crops.
The Government will shortly be publishing a consultation document on the status and prospects for renewables. A co-ordinated strategy would need to be agreed between Government and industry to cover the medium-term future with a view also to the longer term. 701W Such a strategy is expected to arise from the renewables consultation document. It would need to take account of the European White Paper on renewables.
As for offshore wind, I have already consulted interested parties on the most suitable arrangements for incorporating the development of offshore wind energy into the NFFO process and the results of my consultation will be incorporated into the co-ordinated strategy arising from the renewables consultation document.
In the meantime, my Department' s New and Renewable Energy Programme continues to support preparatory work on offshore wind, including monitoring the development of the first offshore wind NFFO project, at Blyth, and encouraging UK manufacturing industry to seize the commercial opportunities within the offshore wind arena. We have already awarded contracts to two offshore wind projects under NFFO-4. These are located at Gunfleet Sand, near Clacton, Essex, comprising 12.8 MW contracted capacity and the other at Blyth, Northumberland comprising 0.72 MW contracted capacity. Total DTI expenditure on wind energy projects in 1997–98 was £1.5 million.