[holding answer 25 March 2008]: The 2007 Energy White Paper sets out the Government’s policy to promote energy innovation in renewable technologies. The Government are supporting a wide range of technology push measures to stimulate research and development and demonstration through the Research Councils, Technology Strategy Board, Energy Technologies Institute (all DIUS funded) and the Environmental Transformation Fund (DEFRA and BERR funded).
These bodies work closely together to ensure that funding activities are complementary and together effectively supports a portfolio of technologies, including renewables such as wind, wave and tidal, microgeneration and photovoltaics and bioenergy.
In addition market pull comes by providing the market mechanisms and incentives such as the renewables obligation (RO). By 2010 the RO along with exemption from the climate change levy will provide around £1 billion per year in support to the renewables industry. We are introducing measures to allow banding of the RO. This will provide the generation industry with greater incentive to develop and deploy those technologies which are currently further from commercial deployment.