Research Councils’ support for energy research is increasing from £40 million per annum to £70 million per annum between 2005-06 and 2007-08. Funding for the following three years will be determined in the context of the Comprehensive Spending Review. In addition, my right hon. Friend the Secretary of State announced in September a commitment of up to £500 million to a new Energy Technologies Institute, to create a £l billion joint venture with industry over the next decade for energy research and development.
In June, my right hon. Friends the Secretary of State and the Secretary of State for Environment, Food and Rural Affairs announced the new Environmental Transformation Fund which is intended to boost investment in low carbon technologies and in energy efficiency. The fund will focus on demonstration and deployment of low carbon technologies. It is expected to run over the next CSR period from 2008-09 through to 2010-11. Details of the Fund will be announced in due course.