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9 Jan 2008 : Column 680W—continued
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps are being taken to limit the renewables obligation's cost to the consumer in circumstances where renewable technologies or developments cease to require support as a result of rising wholesale electricity prices or falling project capital expenditure. [175697]
Malcolm Wicks: Proposals to review bands were set out in the document ‘Reform of the Renewables Obligation’(1).
The criteria to be taken into account in reviewing bands set out in that document include consideration of the full project costs (including the costs of scoping, planning, construction, grid connection, transmission charges etc.) and incomes (for example, due to the wholesale price of electricity, the avoided cost of schemes such as the EU ETS, landfill tax and the climate change levy etc.).
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps are being taken to limit the renewables obligation's cost to consumers once targets are met. [175698]
Malcolm Wicks: The Government have a target that 10 per cent. of UK electricity should come from renewable sources by 2010, subject to costs to the consumer being acceptable, with an aspiration to double this by 2020. This target will be revised pending the outcome of discussions with the Commission and other member states over achievement of the EU target to supply 20 per cent. of Europe’s energy from renewable sources by 2020.
The UK is committed to implementing our share of this target in the most cost-effective way and will be consulting on policy measures to meet the target in 2008. The UK Renewable Energy Strategy will be published in spring 2009.
The renewables obligation is set at 10.4 per cent. of electricity supply for 2010, and we have announced our intention to let the obligation increase to a level equivalent to 20 per cent. on a headroom basis. The level of the obligation is not the same as a target; the obligation is set at a level of electricity supply from renewable sources just above that which we expect the market to deliver. The cost to consumers is given by the size of the obligation multiplied by the buy-out price. In the event that supply from renewable sources exceeded the obligation in a given year, for instance because of weather conditions, this would not add to costs for consumers.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will estimate the effect on the balance of payments of imports of renewables development under the renewables obligation to date. [175772]
Malcolm Wicks: The value of imports related to renewables development since the introduction of the RO has not been recorded.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will estimate the likely effect on the balance of payments of imports arising in relation to renewables development under the renewables obligation in the period up to 2027. [175773]
Malcolm Wicks: We do not have the data necessary to make such predictions.
Renewables Obligation: Carbon Emissions
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate he has made of the expected cost per tonne of carbon dioxide emissions avoided under the renewables obligation in (a) 2010 and (b) 2020. [175701]
Malcolm Wicks: No estimates have been made for the cost per tonne of carbon dioxide emissions avoided for specific years. This is because the carbon saved in a given year cannot be solely attributed to resource spent in that year.
The report ‘Reform of the renewables obligation—what is the likely impact of changes’(1) which was published alongside the recent consultation on reform of the renewables obligation (RO) includes a figure for the cost effectiveness over the lifetime of the renewables
obligation of £188/tC. In practice this represents an upper limit as investments under the RO may lead to continued emissions reductions beyond the RO's lifetime.
Renewables Obligation: Natural Gas
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate he has made of the quantity of natural gas use avoided annually as a result of renewable developments under the renewables obligation (a) to date and (b) expected to be achieved by 2027. [175700]
Malcolm Wicks: No such estimates have been made.
For illustrative purposes the Government have published comparisons of the amount of generation from renewables expressed in terms of the natural gas required to generate that amount.
In 2006, renewables generation under the Renewables Obligation (RO) was approximately 14.5TWh. The amount of gas used in generating this amount of electricity would be approximately 2.8 million tonnes of oil equivalent. This amount of gas is approximately 3.1 per cent. of total natural gas used in 2006.
The recent Energy White Paper projected around 52TWh electricity supply from renewables in 2020, including that brought about as a result of the RO. Based on projected typical gas-fired plant efficiency in 2020, the amount of gas used in generating this amount of electricity would be approximately 9 million tonnes of oil equivalent. This amount of gas is approximately 9.7 per cent. of the total projected natural gas use in 2020.
Small Businesses: North East Region
Mr. Kemp: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps the Government are undertaking to promote small business start-up schemes among young people in the North East. [175221]
Mr. Timms: The Government’s aim is to get a generation of young people to start thinking about the benefits of running their own business, and to recognise the positive impact that enterprising attitudes can have in every area of their lives.
Funding Enterprise Insight’s Make Your Mark campaign—which promotes enterprise to young people aged 14 to 30;
Supporting the UK’s annual Enterprise Week;
Promoting enterprise education for Key Stage 4 (14 to 16 years) pupils in schools;
Supporting the National Council for Graduate Entrepreneurship to promote business start-up as a viable alternative to working for somebody else.
In the North East of England, funding to help make young people aware of business start-up opportunities is provided by One NorthEast This includes the Future Entrepreneurs programme, providing approximately £3 million from 2005/06 to 2007/08, which aims to deliver enterprise education to young people aged five to 30, together with those individuals who influence young people such as teachers and careers advisers.
One NorthEast has also funded the Prince’s Trust—for both their ‘Business Skills for Young People’ and ‘Beyond the Label’ activities. Since 2005 investment in Prince’s Trust activity from One NorthEast has been approximately £950,000.
Work is also under way to increase the capacity of universities in the region to support graduates with enterprise education and business start-up. Funding is available from One NorthEast to individual institutions, but is conditional on those institutions matching expenditure through their own Higher Education Innovation Fund (HEIF) submissions. The total funding allocated to this programme is: £1,700,000 (2006/07), £2,500.000 (2007/08), and £2,500,000 (2008/09).
As part of a larger Northern Way Project 117 secondary schools in the North East (both mainstream and special schools) have been directly funded. This has supported over 9,000 youngsters to date with more to come this school year. £1.3 million of Northern Way support has been awarded, with schools getting around £10,500 each to integrate enterprise into the curriculum.
Technology: Internet
Mr. Jim Cunningham: To ask the Secretary of State for Business, Enterprise and Regulatory Reform (1) what steps the Government have taken to encourage web-based technology development in the UK since 1997; [175590]
(2) how much the Government have spent on promoting the web-based technology industry since 1997. [175591]
Mr. Timms [holding answer s 7 January 2008]: In view of the wide range of past and present Government activities involving an element of promoting web-based technology, it is not possible to provide precise expenditure figures without incurring disproportionate cost. However, my Department works closely with key stakeholders such as the Information Age Partnership (IAP) to help the Information and Communication Technology (ICT) sector address key issues impacting on its competitiveness, and the Government have provided significant funding for the development of technology in this area via European Framework programmes and more recently the Technology Strategy Board.
Since 1997, the Government have made considerable efforts to encourage the take up and use of ICT, including web-based technologies, by UK business. This was primarily through two major initiatives, the Information Society Initiative and UK online for business. The Government continues to look at how ICT can impact on productivity and social inclusion - most recently through the joint report with the IAP, ‘Raising UK Productivity: unlocking the potential of Information and Communication Technology’ published in June 2007.
We have also done much to promote the development of the broadband infrastructure, working in collaboration with the regions and Devolved Administrations and with industry. The UK has one of the fastest growing broadband markets in Europe, and continues to have the most extensive availability, with 99.9 per cent of households reported to be connected to broadband enabled exchanges.
UK Trade and Investment: Technology
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what support was given by (a) UK Trade and Investment and (b) the Renewables Trade Promotion Service to each technology sector in attending or holding trade events domestically and overseas in the last period for which figures are available. [175687]
Malcolm Wicks: Over the period April 2007 to March 2008, BERR, via UKTI and the RETPS will have supported 13 overseas trade missions and one inward mission. Of the 14 events, eight events covered all renewable technologies, three events were specific to wind energy, two events were specific to bioenergy, and one was specific to marine energy.
Unfair Commercial Practices Directive
Mr. Greenway: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what timetable he plans for the (a) publication, (b) consultation on and (c) implementation of the Unfair Commercial Practices Directive regulations. [175503]
Mr. Thomas: The Department of Trade and Industry consulted on draft Consumer Protection from Unfair Trading Regulations (CPRs) implementing the Unfair Commercial Practices Directive (UCPD) in May 2007. The draft CPRs reflect the outcome of two earlier consultations about implementing the UCPD. The first consultation paper was published in December 2005 and sought views in three areas: interpretation; enforcement; and simplification of existing legislation. The second consultation in December 2006 sought views on how to frame the criminal offences in the regulations implementing the directive.
I propose to lay the draft CPRs before Parliament shortly. If approved the regulations will come into force on 6 April 2008.
Union Modernisation Fund
Mr. Hoban: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what the cost to his Department was of administering the Union Modernisation Fund programme in each year since 2004. [173169]
Mr. McFadden: The cost of administering the scheme represents 5 per cent. of the funds managed.
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Wind Power
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform (1) what estimate he has made of the quantity of (a) steel and (b) concrete required to build sufficient wind turbines to supply the energy needed to meet targets likely to be required under the EU 20 per cent. renewables target; [175674]
(2) what estimate he has made of the quantity of (a) steel and (b) concrete required to build and develop the infrastructure, including access roads, to service wind turbines needed to supply the energy needed to meet targets likely to be required under the EU 20 per cent. renewables target. [175675]
Malcolm Wicks: It is too early to estimate what proportion of the UK contribution to the EU 20 per cent. target will come from any particular source of renewable energy, and the impact that will have. Agreement has not yet been reached on the contribution that each member state will make toward the 20 per cent. target, but we will consult in 2008 on policy options to meet the UK's contribution and publish our full UK renewable energy strategy the following spring once the EU directive has been agreed.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will estimate the number of days annually on which wind speed is too high for the generation of power from wind turbines in each area in which wind farms are located. [175775]
Malcolm Wicks: No such estimate has been made, but the likelihood of wind turbines shutting down due to high wind speed conditions is very rare.
Wind speed statistics are very location specific and vary from year to year. At any one typical UK wind farm location, wind speeds might be high enough to cause wind turbines to shut down for a few hours per year, more on a high wind speed site, fewer on a low wind speed site.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many factories in the UK are capable of manufacturing the primary components of a 2MW wind turbine, including (a) masts, (b) hubs, (c) generators and (d) turbine blades. [176048]
Malcolm Wicks:
We do not hold statistics on how many factories in the UK are capable of manufacturing the primary components of a 2MW wind turbine. However, we are aware of a number of UK factories with the capability of producing the primary components. In
terms of masts we are aware of five companies with the capability, three companies for hubs, two companies for generators and two companies for blades.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimated size of labour force is needed to maintain the number of wind turbines required to meet targets likely to be required under the EU 20 per cent. renewables target for total primary energy; what types of qualifications are likely to be required for such a labour force; and what projection he has made of the number of suitable personnel who will be available on the labour market in 2020 is. [176049]
Malcolm Wicks: It is too early to estimate what proportion of the UK. contribution to the EU 20 per cent. target will come from any particular source of renewable energy, and the impact that will have. Agreement has not yet been reached on the contribution that each member state will make toward the 20 per cent. target, but we will consult in 2008 on policy options to meet the UK’s contribution and publish our full UK renewable energy strategy the following spring once the EU directive has been agreed.
Wind Power: Tourism
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what assessment he has made of the effect on the level of tourism income of the installation of wind turbines in the countryside. [175774]
Malcolm Wicks: The Department has not made such an assessment. However, we are not aware of any evidence to suggest that the level of tourism income has been affected by the installation of wind turbines in the countryside.
The UK's first commercial wind farm at Delabole in Cornwall received 350,000 visitors in its first ten years of operation.
A MORI poll in Scotland (October 2002) showed that 80 per cent. of tourists would be interested in visiting a wind farm. Furthermore, wind farm developers are often asked to provide a visitor centre, viewing platforms and rights of way to their sites.
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