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Renewable Energy: Subsidies

Volume 607: debated on Thursday 24 March 2016

13. What assessment her Department has made of the potential effect of changes to subsidies on the predicted deployment rates of renewable energy by 2020. (904306)

The Government announced a package of proposed cost control measures last year to tackle the projected overspend on renewable support schemes. As the costs of technologies come down, as they have, it is right that subsidies do so as well. We are fully committed to supporting renewable energy, but will do so at least possible cost to consumers and businesses.

I regularly meet the great number of businessmen and businesswomen in my constituency who are engaged in the renewables industry. Does the Secretary of State agree that we must support this kind of innovation and entrepreneurship in the renewables industry?

My hon. Friend is absolutely right about that, and the entire purpose of subsidies is to give new industry and innovations in the renewables industry a good start. Subsidies are not intended to be permanent; they are about getting these things started and giving them a good start so that they can then carry on and deliver secure renewable energy, subsidy-free.