Energy Bill [HL]

Debate between Lord Grantchester and Lord Lea of Crondall

Tuesday 8th February 2011 Grand Committee

[Lord Lea of Crondall]

I support one of the points made by the right reverend Prelate. I am sure that the principle underlining this Bill, and other Bills, is not that we have a totally random system of subsidies but that we have a consistent system of subsidies, a point to which the Minister will perhaps respond when I move my amendment a little later. Nothing would be more fatal than for people to think that any fool can get energy from any place they like and receive unlimited subsidy to do so. As I understand it, that is not part of the principle of a Bill, but it deals with how this consistent pattern of subsidies, or a consistent pattern of carbon taxes, for that matter—that is the reverse side of the coin—will operate, so that it is transparent to all. I am sure that the noble Lord, Lord Teverson, would agree with that principle. It would mean that we would not have the anxieties that have been revealed.

I am all in favour of geothermal, by the way; in fact I spent much of last summer in Iceland and Greenland, where one can see boiling water coming out of the earth all over the place; it is a good form of cheap energy. However, we have to look at the competing forms of energy with some consistent system of units, whether a price per kilowatt hour delivered or whatever. I am sure that this is capable of being embraced within the spirit of the amendment.

[Lord Grantchester]

I am grateful to the noble Lord, Lord Teverson, for tabling his amendment today, as both he and I mentioned it at Second Reading last year. The Minister replied in that debate that he was actively looking at a licensing system. I trust that he will be able to update us today with a positive proposal. As we know, the industry has spent £4 million of the £6 million allocation from our previous Labour Administration, and from the remaining £2 million, the Conservative-led Government have cut the funding by 50 per cent to £1 million with no arrangements in place thereafter.

The noble Lord, Lord Judd, has already updated us on one such proposal. My noble friend Lord O'Neill will also know that geothermal energy has been tapped into since Roman times, with the enjoyment of hot springs, and shallow geothermal projects such as ground-source heat pumps are slowly growing. Even conservative estimates calculate that deep geothermals a few kilometres down could provide 10 per cent of the UK's electricity. It operates 24 hours a day and is always hot; emission levels are virtually non-existent and it should not run out. We agree with the noble Lord, Lord Teverson, that the timing in his amendment specifying within 18 months gives an unnecessarily long leeway within which the Secretary of State could operate such a system. We would support a shorter timeframe.

I would also add to the suggestion of my noble friend Lord Lea that perhaps we could look at increasing the feed-in tariff threshold to 10 megawatts and include a deep geothermal tariff of 23p. If the Minister's plans have extended that far, he could update us on what those might be. We look forward to that.