§ Mr. David StewartTo ask the Secretary of State for Trade and Industry what plans she has to develop renewable energy. [17392]
§ Mr. Wilson[holding answer 23 November 2001]: The Government have ambitious plans to develop renewable energy.
The new Renewables Obligation, to come into effect next year, together with exemption of renewables from the climate change levy, will create a long-term market incentive for renewables which will be worth over £1 billion per year by 2010.
The introduction of the Obligation will be underpinned by direct Government funding for renewables worth over £260 million between 2001 and 2004. This will include an extensive capital grants programme for the early development of offshore wind and energy crops, the initial stage of a major photovoltaics demonstration programme and a boost for research and development.
Other components of the Government's strategy to develop renewable energy include:
honouring of contracts awarded under the earlier arrangements to support renewables, the Non-Fossil Fuel Obligation (NFFO) Orders. In addition, we have consulted on a proposal to introduce a NFFO locational flexibility Order and we are now considering the responses made to this consultation.Initiation of studies of each UK region's capacity to generate electricity from renewable sources. Once all these assessments are completed, it is expected that specific regional targets for renewable energy will be adopted across the UK.The Government are also exploring the scope for upgrading the existing electricity infrastructure to enable the UK's huge renewable energy resources to be exploited to the full. I recently announced that we will be funding an initial study of the feasibility of an underwater cable to connect parts of the western seaboard of Scotland, the north west of England, Northern Ireland, western Wales and possibly the south west of England directly to the National Grid.