Energy Policy

We had a discussion on Asembly energy policy at the Economic Development Committee last week, and I raised the questions of windfarm subsidies, energy efficiency/fuel poverty, and clean coal techology:

Leighton Andrews: Can you confirm that you have no plans to use public subsidy to turn non-commercial windfarm proposals into commercial windfarm proposals? How do you see the balance between onshore and offshore wind in the future?

Mention was made earlier of energy conversation, which is clearly linked to fuel poverty. I have seen proposals for quite an innovative scheme to address fuel poverty in the context of the Heads of the Valleys scheme, and I hope that it will receive full consideration.

What is your view on clean coal technology? A number of my constituents work at Tower Colliery, which has been looking into the future of clean coal technology and has made proposals in that area.

The Minister replied:

Andrew Davies: On the first issue, I have no proposals—I am not sure what you mean by in terms of investment—to turn non-commercial operations into commercial operations. I do not know if you have anything specific in mind in terms of that.

Offshore wind, as opposed to onshore wind, is still at a relatively early stage in its development. The first offshore windfarm in the UK is the North Hoyle windfarm in north Wales. Effectively, you are operating in the most hostile environment out at sea, not withstanding other environments.

Carl Sargeant: I thought you were talking about north Wales. [Laughter.]

Andrew Davies: No, just the sea, wherever it might be.

Christine Gwyther: That is the subtext.

Andrew Davies: There were problems with corrosion, wave movement and servicing and maintaining turbines—it is still very early days. In terms of the balance, this is why offshore development has not played a major role in terms of our targets. If some of these technological and environmental issues can be addressed, I am sure that it will become an increasingly attractive technology.

On energy efficiency, I am grateful for your comments about the Heads of the Valleys scheme. We have engaged with many people in the sector to mainstream and incorporate energy efficiency programmes in any investments that we make in the area.

On clean coal technology, I have always argued the case that, given the huge coal reserves in Wales, clean coal technology has a very strong future. I made that point when I first made my energy statement three years ago. At that time, the DTI did not see a strong future for clean coal technology, but I am delighted to say that it now sees it as a major area of development. The research and development fund that it announced earlier this year recognises not just its intrinsic merits for energy production in Wales, but the economic benefit in terms of exporting the technology to areas such as China and India