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Draft National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)

Yes, there is a subsidy, and I do not think that the Government have ever denied that that subsidy is called the renewables obligation. But I know that when I mention the name of the noble Lord, Lord Stern, it does not always produce the joy I expect to see. The fact is, however, that in general renewable energy is more expensive. It will not be developed without a subsidy—that is what the renewables obligation is—but the work of the noble Lord, Lord Stern, has shown that if we are to reach a low-carbon energy future, the sooner we start down this route, the more cost-effective it will be.