I do not agree with Professor Hughes, and neither does the Committee on Climate Change or the Centre for Energy Policy and Technology at Imperial college. One of the main differences is the assessment of how much wind might be necessary, and we believe that the professor has overestimated that by a third, which automatically reduces the cost by £30 billion. Furthermore, he has not looked at the range of alternative back-up provisions, including interconnectors, or at the likely price of gas in the future.
What steps are the Government taking to ensure that capital investment in wind monopiles will result in manufacturing taking place in the UK using UK steel, so that UK energy bill payers and UK taxpayers can fund UK jobs?
The hon. Gentleman raises a critical point. We have secured agreement with the offshore wind industry that it will work to ensure that 50% of the supply chain involves UK companies, compared with perhaps 10% in the early projects. We want this to be a real industrial policy that brings help to constituencies, such as his, that have a great industrial heritage. We want this to be a joined-up policy.
My Department works closely with the Department for Business, Innovation and Skills to promote skills and employment in the energy sector. The Budget announced £180 million of funding for 50,000 additional adult apprenticeships, and we announced in March that at least 100,000 green deal apprentices could receive Government funding towards their training. There are many opportunities, with the new build nuclear programme alone expected to create 30,000 high-skilled new jobs nationally.
I was very pleased indeed to have the chance to meet the hon. Gentleman, his local authorities and other Members of Parliament from Humberside to talk about the immense potential in those areas for developing the supply chain for the offshore wind sector. That is why we have put in place a £60 million programme to attract manufacturing investment to those sites, and it is encouraging to see the number of manufacturers looking to the United Kingdom.
(13 years, 8 months ago)
Commons Chamber15. What targets he has set for the provision of energy from onshore wind sources in (a) 2011 and (b) 2020.
The Government have not set a specific target for onshore wind energy generation. However, our lead scenario as set out in the national renewable energy action plan indicates that onshore wind capacity could be 15 GW by 2020. We are absolutely committed to deploying onshore wind in a way that takes into account the views of local communities and brings benefits to local people.
I thank the hon. Gentleman for the assiduity with which he advocates the interests of the Humber region and the role it can play in that regard. I was pleased to meet him and some of my hon. Friends and people representing the South Humber gateway last week to enable me to understand the case they are putting forward in that respect. We are delighted that such companies as Siemens, GE and Mitsubishi have committed themselves to major multi-million pound investments in the offshore wind sector, and we understand that some of those announcements are due to be forthcoming early in the new year.