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Energy Security

That is absolutely right, provided that we set sufficiently ambitious tariffs, which I think need to include a three-year period and a 10 per cent. internal rate of return. That will give us the sort of renewables industry that the UK does not have at the moment. Those who say that a cost will have to be paid should look at the Deutsche Bank report that analysed the effect of that approach in Germany and pointed out the merit-order effect—avoided energy consumption from the most expensive fossil fuels has resulted in savings to the German Government of €9.4 billion. They achieved that simply by setting themselves that level of ambition. If we stick with our current low ambitions, we will fail miserably to take the opportunity that, as my hon. Friend the Member for Morley and Rothwell (Colin Challen) rightly points out, is there for the taking. It would deliver job security as well as energy security. We also need to engage with a revolution in our energy thinking. I urge all Members to look at what might come to be referred to as the LichtBlick revolution. At the end of the month, a collaboration between Volkswagen and the LichtBlick company will propose a shift in energy systems thinking, to be piloted in Germany. Instead of building a power station, they are considering 2 GW of energy generation, which could cover the whole city of Hamburg. That will be based on the installation of 100,000 combined heat and power units in homes, factories, schools and health centres, all of which are not only domestically and individually controlled, but centrally co-ordinated. As energy for the city is required, instruction levels can be raised, allowing 2 GW of energy to be delivered collectively from people's own homes.