Energy Bill

This group of amendments covers a wide range of renewables issues, so I hope the House will forgive me if I am on my feet for some time trying to answer all the points raised. I would like to try to do justice to them and address as many of them as possible. I would like first to deal with the renewables obligation-related amending provisions; secondly, with issues related to transmission; thirdly, with the Government's reporting on energy; and, finally, with the issue of feed-in tariffs. The intention behind new clause 11 is, as we have just heard, to encourage the deployment of micro-hydro generation. It proposes exempting micro-hydro installations from the licensing requirements set out by the Environment Agency. Those requirements were put in place for the purpose of protecting our rivers and wildlife. However, there is always a balance to be struck and I am aware of the micro-hydro sector's concerns around the burdens that the regulations place on it. Those impacts are not always easy to assess, which is why I believe it is right to pursue a route to better co-operation between the industry and the regulator, rather than to disapply regulatory protections. My officials are aware of the issue and they are keen to find a way forward, if possible, with the Environment Agency. For example, my Department has funded a project between the industry and the Environment Agency to develop a good practice guide on the environmental impact of micro-hydro schemes. The new clause also proposes changes to the treatment of micro-hydro under the renewables obligation. The detail of how it is implemented is already set out in the Renewables Obligation Order 2006, which takes account of relevant differences between technologies, including hydro-generation. I believe it would be inappropriate—not to mention increasingly complex—for micro-generators to have separate regulations, as seems to be suggested, dealing just with hydro-microgeneration for the purposes of the renewables obligation. Specifically on the definition of hydro-microgeneration, the bands for all technologies will be set out in the order and there is no need for either separate secondary legislation or a definition in primary legislation to deal with the issue. All the changes to the order, including the thresholds for support levels, will be subject to statutory consultation before introduction. My officials have met representatives of the industry to discuss these issues and have committed to consider them further in the light of a study that the British Hydro Association is carrying out on the scope for micro-hydro, so I believe that the right place for the industry and others to voice their concerns is as part of that consultation and not through this Bill.