(11 years, 8 months ago)
Commons Chamber8. What steps he is taking to support the geothermal energy industry.
The coalition is supporting geothermal heat through the renewable heat incentive. Our September consultation proposed a higher tariff unique to geothermal. The coalition is also supporting geothermal power through the renewables obligation. We announced in July that geothermal would be paid at a rate of two renewables obligation certificates. Deep geothermal heat and power projects have also been supported by specific grant awards under the Department’s deep geothermal challenge fund and through the Government’s regional growth fund.
I am grateful to the Minister for his answer. This is an exciting opportunity for Cornwall, and the hon. Member for Truro and Falmouth (Sarah Newton) has convened meetings in this place to discuss it, which the Minister was gracious enough to attend. Given the potential for jobs in Cornwall, the potential to make a base-load contribution to energy, and the now-legendary willingness of the Minister of State, the hon. Member for South Holland and The Deepings (Mr Hayes) to meet, will the Minister agree to meet a delegation from Cornwall to discuss the potential of geothermal?
I pay tribute to my hon. Friend’s diligence in pursuing this issue, and to my hon. Friend the Member for Truro and Falmouth (Sarah Newton), because their efforts have really helped to promote this industry in their region. We are very keen to see progress in Cornwall, which we estimate has the best geology for deep geothermal power generation in the UK. I will be delighted to meet them both to see how we can advance this agenda.
It is extraordinary that the hon. Gentleman has managed to blame officials in my Department, the big six energy companies and practically everybody else he could think of, apart from the people who ran the country for 13 years and the last Labour Energy Secretary, who is now Leader of the Opposition. I will tell him why we were third from the bottom of the renewables league table and why we inherited a disastrous position on the solar scheme. It is entirely due to the incompetence, mismanagement and laziness of the last Government.
Clearly, I welcome the Government’s decision to invest in Cornwall and to support development there. The pathway that has been set out for the feed-in tariff will give a measure of security to those who are looking to invest in the technology. I urge the Minister to be cautious when listening both to the Opposition, who had to be dragged kicking and screaming to the feed-in tariff, and to those who point to the impact on bill payers, when the rising costs of fuel and other technologies will add to their bills too. It will not just be feed-in tariffs. Would the Minister or one of his colleagues be prepared to meet me and someone who has recently developed a large scheme in my constituency, to talk about the issues they face and their ideas for supporting the Government’s work in the future?
My hon. Friend is absolutely right to point out that the shadow Energy Secretary voted in the House against feed-in tariff schemes. This opportunistic conversion to the merits of feed-in tariffs is pretty shameless.
I should be delighted to meet my hon. Friend. I am keen to meet stakeholders who contribute to new ideas that contribute to driving forward the deployment of an exciting technology.
(12 years, 9 months ago)
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There is no special discount for those off mains gas, but obviously the counter-factual makes the offer even more attractive for them. I would encourage those such as the hon. Gentleman’s constituents who are off-gas not only to look at solar PV, but to look at the renewable heat incentive and the renewable heat premium payments, which are already out there, and to see whether they can apply for some of the vouchers for the range of technologies that will help them with their heating, which will form a much larger proportion of their annual energy bills than electricity.
I very much welcome the Minister’s comments to the hon. Member for Brighton, Pavilion (Caroline Lucas) about community schemes. May I urge him to look closely at this issue? In my constituency, Wadebridge renewable energy network—which I believe he is aware of—is looking hard at the scheme, which could have huge benefits as the money is reinvested to deliver more carbon reduction schemes across our communities.
We are keen to encourage community schemes wherever we can, but we have a budget to manage and it is clear that demand far, far outstrips supply, particularly with the current, inflated subsidies. We are therefore trying to recalibrate the scheme and put it on a sound footing, to ensure that the money will be available for years to come to support exactly the sorts of schemes to which my hon. Friend refers.
(13 years, 5 months ago)
Commons ChamberI profoundly disagree with the right hon. Gentleman. We have not cut the budget for the feed-in tariff scheme. We have put in place proper financial controls to ensure that there is money in the system through to 2014. I would be happy to meet him to discuss this matter further, but he must remember that the tariff changes apply only to systems larger than 50 kW, which is equivalent to the size of two tennis courts, and not to domestic housing.
Will my hon. Friend consider the letter has been sent to the Secretary of State from the Wadebridge Renewable Energy Network—the WREN group—in my constituency about community-based projects that might be bigger than the new threshold?
Community-based projects that are larger than 50 kW—about the size of two tennis courts—and up to 150 kW, which is significantly larger, will still get a tariff comparable to that paid in Germany. We should be competitive with Europe, and the pressure should be on manufacturers to reduce the cost of their products rather than to provide bonuses. We hope that many community projects, particularly those around the 100 kW size, will still be able to go ahead, but the pressure must be on manufacturers to bring down their prices.