Mike O'Brien MP

RENEWABLE FUTURES CONFERENCE

A wide-ranging audience like this stresses the importance of the partnership approach and provides an excellent forum for interaction.

On a national level, the expansion of renewable energy is important for the contribution it will make both to achieving our environmental goals, and to ensuring secure energy supplies.

We have set as our first goal obtaining 10% of our electricity from renewable sources by 2010, with the aspiration of doubling this by 2020.

Renewables offer the best opportunity for the new capacity we need.

We are providing almost £350 million of direct funding to promote technologies other than onshore wind.

We provide £19m per year of funding for R&D projects.

Solar PV has also been supported with £20m.

This has been dispensed as grants for installation of solar PV systems on homes and other buildings.

For bio-energy we are providing support in the order of £100 million.

With just over 2 years of experience, the Renewables Obligation is proving itself to be popular with both investors and developers.

At the end of last year measures were announced on raising the level of the Obligation and I recently announced the publication of the terms of reference for the 2005 Review of the Obligation.

With two years experience we are now well placed to consider what changes could enhance effectiveness up to the 2010 target and encourage investor confidence further.

There are also important new opportunities which we want to capture in the renewable energy sector.

Our own analysis has shown that there are already more than 8000 people employed in renewables in the UK.

By 2020 it is predicted that between 17,000 to 35,000 jobs could be sustained by the industry.

Our current aspirations could see significant capital investment in the UK.

The challenge is for UK companies to win as much as it can of this business.

There is undoubtedly broad public support for wind energy.

Our own surveys indicate over 80% support for the technology, and a similar level of desire for Government to do more.

I was also very interested in the recent poll conducted by MORI on behalf of Regen SW which found that 71% of rural residents supported the use of wind power in Devon and indeed that 71% also supported the use of biomass power within the county.

However, there is some opposition to wind farms and a lot of that opposition is highly vocal. Some of it is based on misconceptions.

I want the debate on wind farms to be based on fact.

As the whole of this morning session is entitled “The Big Picture” it is also important to look to the long-term and to begin to coordinate a vision of where we ultimately want our energy policy to lead.

Science holds the answer to finding a solution to climate change and developing tangible, reliable technologies.

This summer, the UK published its 10-year framework for investment in science and innovation. It aims to make the UK one of the most innovative countries in the world.

Our Science Budget has risen by over 10% per annum in recent years and will stand at over £3bn by 2007.

There are a number of technologies with great potential to change the way we produce and use energy.

The 2003 Energy White Paper made clear that local authorities, Regional Development Agencies, Regional Assemblies and other local partners have a critical role to play in the delivery of national energy policy objectives.

It called upon all regions to develop a strategic approach to energy issues, including renewables: developing regional objectives based upon their own specific opportunities and circumstances.

The South West has made excellent progress in developing its own approach to renewable energy with the development of the Regional Renewable Energy Strategy, the formation of Regen SW and the development of Sub Regional Targets.

The work of Regen SW and leadership from S.W.RDA on issues such as wave and biomass are raising the profile of the South West in the national arena.

One of the biggest challenges in the South West and indeed in other regions is encouraging more renewables development.

Clearly this is not just down to Government as business, regional and local organisations and local communities also have a key role to play.

If we are to achieve our objectives on renewables, it is clear that we will need the support of local and regional champions working on the ground.

The work of such champions is critical: both to win hearts and minds and to make the most of opportunities that arise from the development of renewables for local economies and communities.

For our part, we have been keen to offer material support to regions developing these policies.

The region also has its fair share of UK “Firsts” in the renewables sector in addition to many sub-regional and local exemplars. Many of you are here today and I would like to add my own congratulations to the winners of last night’s Regional Green Energy Awards.

I cannot attend an event in the South West of England and not speak about wave and tidal power.

The UK and indeed the South West is blessed with having one of the best marine resources available anywhere in the world.

I know that the region is keen to play its full part in developing the UK wave and tidal sector.

Since the introduction of marine energy programmes the DTI has already committed in excess of £15 million for research and development into wave and tidal devices.

This funding has been supporting many of the key players in the UK who are making such exciting progress and helping the UK become the world leader in this field.

In addition we have seen a number of initiatives to provide the infrastructure that will be needed if we are to see the development of a successful industry.

Here in the South West you have your own unique marine initiative – “the Wave Hub”.

Since its inception last year the projects progress has been impressive.

My Department has worked closely with Regen South West and SWRDA and it has become increasingly clear that “Wave Hub” could have a significant role in the development of marine technologies in the UK.

I believe the prospects for “Wave Hub” have been sufficiently demonstrated to the point where I am able to consider offering support to the project.

That support is conditional on a favourable outcome to the feasibility studies expected at the end of the year and a robust business case.

A key message from our joint review was that wave and tidal stream had the potential to make a serious contribution to the UK's renewable energy targets, and to create significant industrial capability – I want that capability to be in the UK.

The review also identified a major funding gap between the early demonstration and the commercial stages, which needed to be bridged.

On 2 August Patricia Hewitt announced a new Marine Renewables Deployment Fund, worth up to £50 million, to help bridge that gap.

We have looked very carefully at options for addressing this issue and listened to stakeholders.
A more detailed framework for supporting the sector is currently being developed.

Financial support is not the only thing we need to put in place.

There also needs to be a clear consenting regime.

We have been consulting on how best to take this forward and are now considering how the consents process can be simplified.

We have now decided to hold two workshops to explore ideas with developers and other stakeholders – in particular the concept of proving grounds for demonstrating wave and tidal devices – followed by an informal written consultation exercise.

Wave Hub is an innovative and exciting project and I look forward to its continued development.

I acknowledge the progress which has already been made within the region on renewable energy and commend your well developed partnership approach.

I urge you to keep up the good work and I know that further work is in hand to broaden the regional focus on the energy agenda to include issues such as energy efficiency and fuel poverty.

The importance of local and regional activity in delivering the growth of renewables can only grow over time.

Our aim will be to strengthen and deepen our partnership with you as your role increases.

I wish you every success for the remainder of the Conference.