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7 Nov 2005 : Column 47W—continued

Renewable Energy

Mr. Drew: To ask the Secretary of State for Trade and Industry what the final funding settlement is for the renewables industry in the current funding programme for renewable energy. [20213]


 
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Malcolm Wicks: I assume the question refers to the low carbon buildings programme, which is due to start in April 2006, subject to state aids clearance and for which the Government have just announced a budget of £30 million over three years.

Kate Hoey: To ask the Secretary of State for Trade and Industry what the final deadlines are for grant funding applications to the (a) Clear Skies and (b) solar photovoltaics major demonstration programmes. [22212]

Malcolm Wicks: The information is as follows.

(a) The final deadline for Clear Skies community applications was 4 November. For householders there is no set date, grants will be offered up until March 2006 unless forecasting shows that funding will run out sooner, in which case a month's notice will be given.

(b) For the PV demonstration programme the final stream 2 deadline will be in February. For household application grants will be offered up until March 2006 unless forecasting shows funding will run out sooner, in which case a month's notice will be given.

Joan Ruddock: To ask the Secretary of State for Trade and Industry when the (a) Clear Skies and (b) Solar Photovoltaics Major Demonstration Programmes will end; when their successor programmes will begin; and what steps his Department is taking to ensure continuity in the renewables sector. [22337]

Malcolm Wicks: The information is as follows:

£1.5 million of the £30 million budget has been brought forward to the existing programmes to ensure there is a minimal gap between their end and the start of the new programme.

Sarah Teather: To ask the Secretary of State for Trade and Industry what estimate he has made of the number of (a) residential and (b) commercial properties (i) contracting to receive renewable energy and (ii) using on-site renewable generation in each year since 1997. [23482]

Malcolm Wicks: No estimates have been made of the number of residential and commercial properties contracted to receive renewable energy, or using on-site renewable generation, in each year since 1997.

In 2004, 3.1 per cent. of electricity came from renewable energy sources eligible under the Renewables Obligation, enough to supply over 2 million households.

Gregory Barker: To ask the Secretary of State for Trade and Industry what funding has been made available for renewable energy sources in the UK in each year since 1997. [24660]

Malcolm Wicks: It has not been possible to collate all public expenditure and other Government support since 1997 for energy technologies in the time available at proportionate cost. However, it is possible to detail direct DTI and Research Council expenditure on renewables energy. These are set out in the tables.
 
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In addition to this both DEFRA and the Scottish Executive provide funding to the Carbon Trust which conducts research into low carbon energy activities
 
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among other activities. DEFRA also funds research into combined heat and power, which is also detailed in the tables as follows.
DTI new and renewable energy programme—external spend for each technology area by financial year from 1997–98(rounded to nearest thousand)

Spend
Programme area1997–981998–991999–20002000–012001–022002–032003–042004–05
Bio wastes75,00048,00025,00056,00013,00042,00025,9000
Biomass1,317,0001,076,0001,585,0001,267,0001,333,0001,595,0001,346,000974,222
Embedded generation586,000530,000596,000589,000776,0001,424,000725,0001,105,640
Fuel cells900,0001,197,0001,168,0001,410,0001,249,0001,200,0001,701,0004,907,430
Geothermal—aquifers00000000
Geothermal—hot dry rocks00000000
Hydro57,00080,000138,00060,000130,000200,00085,0000
Solar1,660,000983,0001,278,0001,264,0001,522,0004,485,0003,131,0001,970,340
Tidal00027,000305,0001,996,0002,914,0001,268,530
Wave091,00011,000331,000662,000748,0002,104,000
Wind1,240,000950,000801,000913,0001,248,0001,428,0001,395,0001,459,600




Notes:
1. From 2000–01, figures do not include spend on contracts placed direct by DTI.
2. For 2004–05, highlighted cells show a combined spend for the two areas.





£

DTI capital grant programmes1997–981998–991999–20002000–012001–022002–032003–042004–05
Biomass (DTI and lottery spend)10,0001,913,000
Offshore wind capital grants15,000,000
Clear skies community renewables200,0001,387,000
Major PV demo programme960,0002,880,0006,450,000
DEFRA CHP programme1,000,0001,300,0001,900,0002,500,0002,800,0001,600,0002,500,0002,000,000




Note:
Several indirect measures of state support for CHP were introduced in 2001–02. Of those that can be enumerated, climate change levy exemption on fuel inputs to good quality CHP and good quality CHP electricity outputs were valued at up to £80 million per annum, while eligibility for enhanced capital allowances is worth in the region of 10m per annum to the industry. Capital grants for community energy programme schemes were introduced in 2002–03 and the spend on schemes including CHP was: £427,000 in 2002–03, £4,315,000 in 2003–04 and £4,896,000 in 2004–05.





Research council spend

Programme area1997–981998–991999–20002000–012001–022002–032003–042004–05
Biofuel00021,54051,545143,990134,92992,325
Biomass446,665870,970736,434600,811700,790783,0261,042,5261,186,257
CHP4,38236,29763,21077,166267,313356,756225,90570,791
CO2 sequestration00022,54441,58977,78730,32342,461
Fuel cells887,5841,011,524703,128898,6371,145,0761,468,0421,193,165917,608
Hydrogen30,348135,53159,16982,976318,500516,5601,494,1551,495,130
Solar1,439,8351,286,0001,076,0001,134,0001,130,0001,157,0001,453,0231,753,334
Photovoltaic2,254,7563,001,8352,759,5172,991,9773,536,4282,770,3542,381,0442,761,866
Wave and tidal0157,000175,000300,599605,693616,694830,2261,050,253
Wind199,847225,903177,716260,596330,283490,447481,572255,672
Wind/solar(7)021,00021,000100,0000000
Wind/wave(8)028,00028,00028,00028,00028.00028,00028,000
Waste66,0129,98539,65239,96295,718124,826169,024154,474
Geothermal00040,49364,55063,55073,46079,429
Storage325,808649,899669,617837,918888,602809,871730,182499,536
Networks1,347,6781,167,6951,081,132919,1651,114,7931,388,4901,804,7492,463,125

Gregory Barker: To ask the Secretary of State for Trade and Industry what steps have been taken to ensure that there is adequate funding for renewable energy sources in the UK. [24661]

Malcolm Wicks: The Renewables Obligation is the Government's main policy to support renewables. The value of the obligation rises every year and will be worth around £l billion by 2010. On top of this the Government have also committed to further support renewables with £500 million of support for research, development and demonstration of a range of renewable technologies between 2002 and 2008.

Gregory Barker: To ask the Secretary of State for Trade and Industry if he will make a statement on funding targets set for renewable energy sources in the UK; and whether funding targets have been met. [24707]

Malcolm Wicks [holding answer 3 November 2005]: The Government do not have funding targets for renewable energy. The Government have a target of
 
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10 per cent. of electricity from eligible sources of renewable energy by 2010, with an aspiration to double that by 2020.

To support progress towards the Government's renewables target we introduced the renewables obligation (RO) in 2002. The RO requires electricity suppliers to source an increasing proportion of their electricity sales from renewable sources. The RO, together with exemption for renewables from the climate change levy, is expected to provide support to industry of around £1 billion a year by 2010.

We have also allocated support of around £500 million, between 2002 and 2008, for capital grants and research and development, to help develop renewable and other low carbon technologies.

Lynne Jones: To ask the Secretary of State for Trade and Industry if he will make a statement on (a) proposals to replace the Major Photovoltaic Demonstration Programme and the Clear Skies Initiative and (b) the resources to be made available for new programmes. [24929]

Malcolm Wicks: A new Low Carbon Buildings Programme will supersede the current programmes. This is due to start in April 2006, subject to State Aids approval, with a budget of £30 million over a 3-year period.

Norman Baker: To ask the Secretary of State for Trade and Industry what assessment he has made of the impact on future investment decisions of his decision not to confirm an extension to the renewables obligation beyond 2015. [25032]

Malcolm Wicks: The renewables obligation already continues beyond 2015 to 2027. Under the ongoing review of the renewables obligation, the Government have set out its position that it do not consider that any additional announcements on obligation levels beyond 2015–16 are necessary at this stage.

Given the current gap between ROC-eligible renewable energy generation (3.1 per cent. in 2004) and the obligation level for 2015–16 (15.4 per cent.), we consider that there remain strong incentives within the RO to make new investments in renewable

energy.

This position has been extensively discussed with industry and other stakeholders as part of the ongoing consultation.


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