UK Parliament / Open data

Energy Bill

Proceeding contribution from Lord Hutton of Furness (Labour) in the House of Commons on Tuesday, 22 January 2008. It occurred during Debate on bills on Energy Bill.
I will gladly raise that question with Scottish Ministers, and I am sure that I will have my right hon. Friend's support in doing so. We all have reasons to be cheerful now, because we have reached part 2, which focuses on renewable electricity. The Government are committed to an increasing role for renewables in the UK's energy mix, and part 2 makes a number of important changes to the renewables obligation. First and foremost, it must be said that the renewables obligation has been highly successful. Since its introduction in 2002, renewable electricity has more than doubled, from about 2 per cent. to more than 4 per cent. of electricity generated in the United Kingdom. By 2020, alongside exemptions from the climate change levy, the renewables obligation will be worth about £1 billion a year in support of the renewables industry. The changes in the renewables obligation include the introduction of a power to band the obligation to allow different levels of support for different technologies, and will help to promote a more rapid deployment of a wider range of renewable technologies. That will include more support for microgeneration—mentioned by my right hon. Friend the Member for Scunthorpe (Mr. Morley)—and renewable combined heat and power, helping the UK's electricity from distributed generation sources to grow over the long term. I know that some people, in the House and outside, believe that the renewables obligation should be replaced. They cite the success of feed-in tariffs, particularly in Germany, as proof that they constitute a more effective means of developing renewables. I think that we should be clear about the economics. Whatever the merits of feed-in tariffs in the context of other countries' energy systems, we need to consider what will work best here in the United Kingdom. Germany has benefited from a consistently supportive policy for renewables since the early 1990s, and it is paying dividends. That clarity and consistency of approach has been a big part of Germany's success, which we celebrate with our German colleagues. UK renewables investors have highlighted certainty and consistency as two of the factors that will be crucial to continued and rapid growth and development of renewables in the UK. That is why our measures will build on and strengthen the renewables obligation. Our reforms are the result of more than 18 months of working closely with renewables investors and others to ensure that we got them right.

About this proceeding contribution

Reference

470 c1367-8 

Session

2007-08

Chamber / Committee

House of Commons chamber

Legislation

Energy Bill 2007-08
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