Oral Answers to Questions

Debate between Andrew Percy and Charles Hendry

Thursday 16th December 2010 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

7. If he will make it his policy to provide long-term revenue support for renewables obligation certificates for marine renewable technology to ensure that developers and manufacturers locate themselves in the UK.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

We are committed to the establishment of a system of feed-in tariffs in electricity as well as to the maintenance of banded renewables obligation certificates. We have already brought forward the scheduled review of the renewable obligation by a year to give investors greater clarity and confidence. As part of the electricity market reforms, we will set out plans for support for marine and other renewables for the longer term.

[Andrew Percy]

The Minister will be aware that I represent not only the best constituency but one of the most tidal, with several major rivers including the Ayr, the Ouse, the Trent and parts of the Humber. Does he agree that the Humber area generally has huge potential in terms of marine and tidal energy, and will he commit to supporting the pan-Humber vision of making the Humber a centre for renewable energy?

[Charles Hendry]

My hon. Friend raises an issue that applies to many parts of this country. The United Kingdom has some of the highest tidal reaches of anywhere in the world and it is our determination that we should lead in marine technologies rather than follow others. Undoubtedly, the Humber has a significant contribution to make in that respect. Many areas could contribute to that process, which is why we are putting in place a marine energy programme with a view to leading to marine energy parks where those technologies can be taken forward.

National Policy Statements

Debate between Andrew Percy and Charles Hendry

Wednesday 1st December 2010 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

In my constituency, many properties are not on the gas network, and there are no plans to expand the network into many of the small villages there. Will those properties be able to access alternative sources of heating through the green deal, perhaps through air source heat pumps and so on?

[Charles Hendry]

I am grateful to my hon. Friend for the work that he has done to highlight issues such as these. We said in the coalition agreement that prioritising off-grid customers would be an important part of what we are seeking to do. However, the help for them will not come through the measures in the green deal. His constituents will of course be eligible for support for energy efficiency measures through the green deal, but the renewable heat incentive will give them support for other mechanisms such as air source heat pumps, ground source heat pumps and solar thermal installations. There will be a different funding mechanism for that, and we have confirmed that £860 million will be made available for the renewable heat incentive. We will set out the precise details of that in the next few weeks, and it will target precisely the people that he is most concerned about in that respect.

--- Later in debate ---

[Charles Hendry]

We have to see the national policy statements as part of the process. They are an integral part of an improved planning process, but they are not the full package. Electricity market reform will also be a key element in incentivising people to invest. Let me give an example of how things are changing. I was recently with Ofgem launching the second round of offshore grid transmission infrastructure bids. More than 100 different organisations, most of which were new players in this area, were keen to take part in that process, which was started by the previous Administration. A number of new organisations—new financial institutions—want to invest in our energy infrastructure, which is extremely encouraging, but to see the full package of these measures it will be necessary to ensure that they see the planning changes and the funding mechanisms that will drive it forward.

[Andrew Percy]

rose—

[Charlie Elphicke]

rose—

[Charles Hendry]

I shall take a couple of interventions and then seek to conclude my remarks.

[Andrew Percy]

While we are on the subject of new players coming into our energy industry, I invite the Minister to visit north Lincolnshire and the site of the South Humber Gateway project, where we hope to cluster a number of offshore wind farm manufacturers with the potential to create 5,000 jobs initially, possibly rising to 20,000. It will be incredibly important to our region, so I invite the Minister to join me and my hon. Friend the Member for Cleethorpes (Martin Vickers) on a visit some time soon.

[Charles Hendry]

I know that both my hon. Friends have done sterling work in pushing the case for the South Humber Gateway. I would be delighted to see the planned work to get a clearer understanding of the ambition. It is typical of many of the ambitions of people who see a fantastic new opportunity emerging in the energy sector, and we are keen to encourage that. I imagine that my hon. Friend the Member for Dover (Charlie Elphicke) will make a similar plea for a visit.