Spoke yesterday in the debate on the second reading of the Energy Bill, a slim document that even Labour’s Alan Whitehead called a “modest” measure. Given the importance of the issue, many Members had turned up to speak, mostly about what was missing from the Bill.
Sparse as it is, the Bill does, however, contain provisions aimed at encouraging the development of carbon capture and storage (CCS) technology, to be funded by a levy on the electricity supply companies, which will undoubtedly be passed on to consumers. CCS will be a vital tool in addressing carbon emissions, but the Government’s plans are really too timid. Britain has the potential to be the world leader in this field, but other nations are already powering ahead of us and unless we can come up with something considerably bolder, we will be left behind,
I told the House that I approved strongly of provisions in the Bill that make the reduction of carbon emissions one of the principal obligations of both the Secretary of State and Ofgem. However, I was disappointed that more was not being done to encourage the development of reliable renewable technology.
The biggest obstacle to progress is the way that Renewables Obligations certificates (ROCs) are structured, giving developers every incentive to opt for wind power, a relatively cheap and well established but inefficient technology, rather than invest in potentially more reliable renewables such as tidal power.
ROCs are very blunt instruments. One ROC is awarded for every megawatt hour of renewable generation, irrespective of the technology used to produce it. This tends to favour wind farms and to discourage investment in new technologies.
The Government recognises the problem and intends to address this by “banding” ROCs, giving additional ROCs to innovative technologies. However, onshore wind will continue to attract ROCs at the current rate, providing an attractive return that will mean that wind farms will continue to proliferate and the development of tidal power, like CCS, will probably go overseas.
The Bill is very much a missed opportunity and I have no doubt that the issue will have to be revisited by the next Government soon after the general election.