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Energy: Renewables

Volume 689: debated on Monday 5 February 2007

asked Her Majesty's Government:

What action they propose to take following the publication on 22 January of the report of the Office of Gas and Electricity Markets, Ofgem, on reform of the renewables obligation 2006. [HL1737]

We have consulted on ways of streamlining the renewables obligation in order to bring forward emerging technologies, such as offshore wind, that can take us toward our renewable energy targets. We received from a wide range of companies and interest groups, as well as Ofgem, a total of 206 responses to our consultation document: Reform of the Renewables Obligation and Statutory Consultation on the Renewables Obligation Order 2007. We will take account of all of these in formulating our policies for future support of renewable electricity generation.

Since the introduction of the RO in 2002, eligible renewable electricity generated under the scheme has increased to 4.0 per cent of total electricity sales to UK consumers in 2005—up from 1.8 per cent in 2002. This makes it more successful than the previous mechanism, the non-fossil-fuels obligation, under which the proportion of renewables rose from 0.2 per cent of electricity sales in 1992 to 1.8 per cent in 2002. We wish to build on this success with an approach that increases the deployment of renewable generation, maintains investor confidence and increases value for money for the customer.