Mr. Gareth R. ThomasTo ask the Secretary of State for Trade and Industry if she will encourage development and long term investment in the energy potential of a range of offshore technologies. [8249]
§ Mr. WilsonThe Department has put in place a range of measures to encourage and assist development and long term investment in offshore technologies.
The Government have allocated at least £49 million to capital grants for offshore wind. £39 million will come from DTI, the remainder from the New Opportunities Fund. The capital grants programme was officially launched this week, and application forms/guidance notes are now available from DTI at www.dti.gov.uk/renew/eoi.htm. These grants will support early deployment of a number of demonstration projects and enable the industry to develop a bank of knowledge and expertise to maximise the contribution of this technology to the UK's 10 per cent. target. We have also consulted recently on the offshore consents process and plan to bring forward a new 'one-stop-shop' approach which should make it easier for project developers to get their projects up and running.
Already this year, 18 wind farm developments have achieved pre-qualification status for a lease of sea bed from the Crown Estate. We hope to see these projects coming to fruition as quickly as possible. In the light of the interest expressed in the first round of leases we would also hope that the Crown Estate can provide further opportunities.
In connection with support provided to wave and tidal power, I would refer my hon. Friend to the questions answered early today PQ's ref No. 8256 and 8253.
All three technologies will also benefit from the forthcoming introduction of the Renewables Obligation. The Obligation marks a significant commitment by Government to the renewables industry as a whole, with the potential to create a market worth over £1 billion per annum by the year 2010. We have backed up our commitment to the Obligation with funding worth over £260 million for this and the next two financial years, including the capital grants funding and R&D programmes already mentioned. A proportion of the £100 million for renewables announced by the Prime Minister earlier this year may also be allocated to the early deployment of offshore technologies.