HC Deb 12 May 2004 vol 421 cc443-4W
Mr. David Stewart

To ask the Secretary of State for Trade and Industry what research she has commissioned on the balance between profit and investment associated with renewable energy development. [170173]

Nigel Griffiths

The Government have created an attractive investment framework for renewable energy developments through the creation of the Renewables Obligation and, for certain technologies, additional support through capital grants. This is in support for our policy goals of securing 10 per cent. of electricity from renewables by 2010 and further significant contributions from this sector 2020 and beyond.

However the specific economics of individual renewable energy projects will differ on a case by case basis for a variety of reasons, notably the location of the project and the technology involved. Those seeking to develop or finance renewable energy developments must reach their own views on the economics of individual projects.

Miss McIntosh

To ask the Secretary of State for Trade and Industry what her policy is on renewable energy. [170792]

Mr. Timms

The Government's target for renewables is that, by 2010, 10 per cent. of our electricity sales will come from renewable sourced electricity. The target is challenging as we are starting from a low base.

The Government's main policy mechanism for achieving the target is the Renewables Obligation (and Renewables Obligation Scotland). Introduced in April 2002, it places an obligation on all licensed electricity suppliers to supply a specified and growing proportion of their sales from electricity generated from a range of eligible renewable sources.

Through the Renewables Obligation (RO), we are looking to accelerate the development of renewables in a wide range of sources and technologies. In order to encourage a more vigorous and diverse renewable energy sector, the Government have also allocated a total of £350 million over four years for capital grants and research grants to promote forms of renewable energy that are further from becoming commercially competitive. This includes among other things grants of £117 million for offshore wind, £66 million for energy crops and biomass, £25 million for solar photovoltaics (PV), £10 million for community schemes and £5 million for wave and tidal demonstration projects.