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Security of Supply

Will the hon. Gentleman forgive me for not giving way? He has already intervened and perhaps he can catch Mr. Deputy Speaker’s eye later. The Government have told us that renewable energy sources will satisfy our need for diversity. However, it looks increasingly unlikely that their target of 20 per cent. of energy from renewables by 2020 will be achieved. Even if it is met, it has been estimated that by then 60 per cent. of electricity generation would come from gas. That would constitute a large increase in our dependence on gas, which, with its volatile price, undermines the energy stability that we all want. In addition, due to the depletion of North sea gas reserves it has been estimated that 80 per cent. of our gas would be imported, so considering the gas element alone, it means that we would be dependent on imports for nearly half our electricity. Unfortunately, the current raft of measures designed to encourage diversity is failing; for example, the costs imposed on generating companies by the Government’s renewables obligation are passed on to consumers, who will end up subsidising renewable energy by as much as £1 billion a year by 2010 and £1.5 billion by 2015. However, although the renewables obligation provides enough subsidy to make onshore wind profitable, it does not do enough for any of the other technologies, and a viable and significant renewables sector depends on a range of renewable generation technologies. Those technologies face the gap between the grant funding available for early stage development and the price support available through the renewables obligation. Until the gap is bridged, offshore wind, biomass, wave, tidal and solar power will be largely or wholly confined to demonstration projects, unable to complement and compete with onshore wind. It is reasonable to be highly concerned that the Government are creating perverse incentives for onshore wind, which is a controversial and visually intrusive technology, while disincentivising other renewable energy technologies, which are less so. The result is that far from increasing our diversity, we are shutting it down. So I say again, gas power accounts for 40 per cent. of the electricity supplied in the UK—approximately double the reliance of 10 years ago and the diversity we want is not marching forward as it should, and could. There has been too much delay already regarding energy policy. We need to see emphasis on the efficient use of energy, perhaps in many places following the Woking model, greater security of energy supply and a more technologically diverse approach to energy sources. Perverse incentives that act to make it less likely that renewable energy sources will be developed need to be reformed and made to work. We look forward to constructive proposals to deal with the key issues and a firm commitment from the Government not to hesitate further in working to secure our energy supplies for the future.