Climate Change: Durban Conference

Debate between Baroness Worthington and Baroness Stowell of Beeston

Tuesday 22nd November 2011 Lords Chamber

[Baroness Stowell of Beeston]

I am sure that the Government are working on that, and I am grateful to my noble friend for raising the issue. If there is anything specific that I can offer further to my answers today, I will obviously provide it to him.

[Baroness Worthington]

My Lords, although the UN process remains blocked by the lack of US participation, will the Minister tell us more about the Clean Energy Ministerial meeting to be held in London next year? Energy Ministers from around the world will be gathering here, and they could potentially sign up to a deal that agrees to reduce the carbon intensity of our energy as soon as possible. This would be a very clear step forward while the UN process remains bogged down by the lack of US participation.

[Baroness Stowell of Beeston]

I am amazed at the expertise that is coming at me today from different parts of the Chamber. The noble Baroness knows far more about the detail of these issues than I do. On the conference next year that she refers to, our objective is to complete concrete outcomes that demonstrate progress and enhance global low-carbon energy technology development internationally.

Renewable Heat Incentive Scheme Regulations 2011

Debate between Baroness Worthington and Baroness Stowell of Beeston

Tuesday 22nd November 2011 Grand Committee

[Baroness Worthington]

Could I ask specifically about the notice period, which has been such an issue with the solar feed-in tariffs? The Minister mentioned it but I am seeking an assurance that any changes are not introduced with too short a time period for the industry. A minimum of three to four months is necessary for the industry to adjust its order books and supply chain. Can the Minister assure me that there will not be changes posted that will be enacted within six weeks? That is a significant issue for investor confidence.

[Baroness Stowell of Beeston]

I understand the point that the noble Baroness makes. However, the way in which we have constructed the scheme means that I would not expect the sort of change that we have experienced with the feed-in tariffs for solar PVs to be repeated in this context. We would ensure, through our mechanisms for cost control within the department, that we are monitoring progress very transparently and that we would avoid that kind of emergency change that she refers to. It is unnecessary to give a specific commitment on a timetable as such because of what I have said, but I absolutely understand and appreciate her point.

Turning to the points raised by my noble friend the Duke of Montrose about large-scale biomass, the renewables obligation certificates and RHI, it is possible for new projects to receive the renewables obligation for the electricity generated in a CHP plant and the RHI for heat generated by that plant. A plant cannot claim the higher awards for CHP under the RO and the RHI. Does that make sense to my noble friend? I am glad if it does. My noble friend also asked whether the Scottish Government could award ROCs. The decisions regarding the details of renewables obligations, including the setting of banding levels, are for the Scottish Government. A separate consultation on their support of renewables obligation certificates was published on 21 October.

Energy: Feed-in Tariffs

Debate between Baroness Worthington and Baroness Stowell of Beeston

Monday 31st October 2011 Lords Chamber

[Baroness Stowell of Beeston]

Perhaps I may remind the House that this is an Oral Statement and that interventions should be limited to brief comments and questions.

[Baroness Worthington]

My Lords, I am grateful for the Minister’s comments. My concern is that this is merely about the Government’s priorities, which are being set by a modelling of the energy system that is proving to be utterly incapable of modelling what happens in the real world. This is now the second set of changes whereby a successful industry is essentially being cut off at the knees because of an unexpected success rate, when this is something that we should be championing and backing. The Government must accept that if their modelling is incorrect, they must go back to first principles and work out which technologies are going to deliver the step change that they describe. No matter how much money is thrown at some technologies, they may not succeed—I am thinking of CCS and the current generation of nuclear.

The Government saying, “This is just too successful, we cannot afford it”, is not a good answer. We must go back to first principles and ensure that our successes continue to be successes. If they are having trouble now with feed-in tariffs, they will have even more trouble when they look at energy market reforms and try to fix prices for the long term on the big generators. That should be settled by the market. I am very concerned that the modelling is incorrect and that trying to fix prices is just the beginning. We should probably look at market-based solutions.