§ Mr. CarmichaelTo ask the Secretary of State for Trade and Industry what steps he is taking to encourage the generation of electricity using wind power. [7326]
§ Mr. WilsonThe wind energy industry will benefit substantially from the introduction of the Renewables Obligation which will provide a long-term market for renewable energy for the next 25 years. This market will be worth over £1 billion per year by 2010 and suppliers1156W are expected to meet a significant proportion of their obligations from wind energy. Existing contracts made under the Non Fossil Fuel Obligation (NFFO) arrangements will be honoured, and we propose to table an Order before the end of 2001 to allow locational flexibility for these projects.
Wind energy also benefits from exemption from the Climate Change Levy.
By promoting the development of regional plans for renewable energy, and through the proposed update of National Planning Policy Guidance Note on Renewable Energy (PPG22), the Government are seeking to ensure that local planning decisions on proposed wind energy projects are taken in the context of wider policy objectives.
At least £49 million has already been announced for a DTI and New Opportunities Fund capital grants scheme for offshore wind energy projects. The offshore wind industry could also potentially benefit from forthcoming decisions on the extra £100 million for renewable energy pledged by the Prime Minister earlier in the year.
We have consulted extensively with the wind industry on the design of the capital grants scheme and intend to launch the scheme shortly. We have also consulted on our proposals for a "one-stop shop" to help developers seeking to obtain the necessary consents for offshore projects.
Wind energy projects are also eligible to apply for support under the Department's Sustainable Energy programme, which will provide funding for renewables research and development of £55 million in total over this and the next two financial years.