Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)

Given the huge obvious potential in the sector, the Minister will understand the renewable energy sector’s natural impatience to know how the green investment bank is progressing and whether the Department is receiving the necessary support that it looks for from the Treasury. Given that potential, can he update us on how things are progressing towards May? Big sites, such as Nigg and Kishorn in my constituency, are really looking to the Government for a lead.

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Huw Irranca-Davies (Ogmore) (Lab)

“It is hard to see how the UK’s target of 15% renewable energy by 2020 can be achieved without a significant contribution from onshore wind. The localism bill has all the makings of a NIMBY Charter...there is a distinct danger we could be heading towards BANANA—Build Absolutely Nothing Anywhere Near Anything”.

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The Minister of State, Department of Energy and Climate Change (Charles Hendry)

In the heating sector, the carbon emissions associated with LPG are slightly higher than those for natural gas. It does, however, have the potential to reduce carbon emissions for those not on the gas grid, as it has a smaller carbon footprint than alternatives such as heating oil and electric heating, though higher than that of renewable energy technologies such as efficient ground-source heating pumps.

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Mary Macleod

I am delighted that the Department of Energy and Climate Change and the Treasury have joined forces to launch the electricity market reform project. How will those proposals build the necessary confidence to invest in low-carbon options over the long term and manage the transition period to ensure that stability is maintained?

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The Minister of State, Department of Energy and Climate Change (Charles Hendry)

Ministers and officials in the Department of Energy and Climate Change meet Ofgem and suppliers on a regular basis to discuss market issues. Ofgem monitors the market closely and reports quarterly on retail prices. Its latest report shows large increases in estimated supplier margins for the year ahead, largely owing to recent price increases. We are disappointed on behalf of consumers by this development, and welcome the announcement of Ofgem’s review of the retail market.

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The Minister of State, Department of Energy and Climate Change (Charles Hendry)

We had regular contact with the owners prior to the administration. We have not had direct face-to-face contact with them subsequently, because we believe that this is a matter for them to sort out with the administrators. However, we recognise the great potential of that location and of the technology that is being developed there for carbon capture and storage, and as we take forward our plans for CCS, we hope that the plant will still be able to bid into the process.

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Catherine McKinnell (Labour)

The north-east of England has a burgeoning offshore wind sector, supported by the new renewable energy centre in Blyth. What is the Department offering to support the growth of that industry now that the very successful regional development agency, One North East, which provided a lot of vital support, is being wound down?

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