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Companies: Renewable Energy

Volume 463: debated on Thursday 19 July 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what incentives his Department has put in place to encourage local businesses to support the use of renewable energy in their offices and factories. (150610)

The Low Carbon Buildings Programme Phase 1 with a budget of £36 million over three years provides capital grants for the installation of microgeneration to households, schools, social and local authority housing, businesses, charities and the public sector. Further information on the programme can be found at www.lowcarbonbuildings.org.uk

The Renewables Obligation (RO) is the Government’s key mechanism for supporting new renewable generation and by 2010 it will be worth around £1 billion per year in terms of support to the renewables industry. It requires licensed electricity suppliers to source a specific and increasing percentage of their sales from renewable sources. Eligible renewable generators receive one Renewable Obligation Certificate (ROC) for each 1 MWh of electricity generated. However, to encourage more renewable generation from a wider range of sources, the Government are proposing to change the RO so that renewable technologies are awarded differentiated levels of support, for example, offshore wind could receive 1.5 ROCs/1 MWh and wave 2 ROCs/1 MWh. The Government are currently consulting on these proposals.