§ Mr. PondTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on Government policy relating to combined heat and power projects. [124593]
§ Mr. MeacherCombined heat and power is vital to helping us meet our Kyoto commitments. The Government are actively working towards a target of at least 10,000 megawatts by 2010, and will issue and consult on a new CHP Strategy for achieving the target. The Government have already announced that Good Quality CHP will be eligible for Climate Change Levy exemption, Enhanced Capital Allowances, and de-rating of electricity generating plant and machinery, from April next year. I announced the basis on which "Good Quality" would be assessed, following consultation, on 17 May.
My right hon. Friend the Secretary of State for Trade and Industry, in his statement to the House on energy policy on 17 April 2000, Official Report, columns 697–99, reaffirmed the Government's strong support for CHP, and indicated that it would continue to expect developers to explore opportunities to use CHP, in considering notifications and applications under the Electricity and Energy Acts.
The Government actively work to increase the use of CHP in their own property, other public organisations, industry and commerce. On 17 May I also launched the CHP Club, strengthening the information and advice provided by Government to existing, new and potential CHP users.