Sir Reg Empey (UUP)

The work being carried out by Rural Generation Ltd at the Brook Hall estate, Londonderry, has contributed significantly to developing a commercial combined heat and power unit. This involves gasification, using short rotation coppice willow. I am committed to increasing the electricity generated from renewable sources and will set targets for this in the autumn.

Sir Reg Empey (UUP)

I shall write to the Member about Brook Hall, as I do not wish to give him an unprepared answer at this stage. I am aware of the potential job opportunities, particularly in rural areas where people have been suffering. The farming community has been suffering greatly over the past few years, with foot-and-mouth disease, the weather, and the change in the European Union’s approach to agriculture. There has been enormous pressure. Some have suggested tourism solutions, and some have suggested rural regeneration. That is one possibility.

We must raise our game, and I shall be setting targets for renewables in the autumn. However, this is controversial in many places. Rural Generation Ltd has made a grant application, which is being evaluated. I cannot give the Member a "Yes" or "No", but it is under active consideration. The Department looks favourably on the disposal of waste from farms. The generation of methane gas from waste slurry products to drive generation is another method. In small rural areas this could increase job opportunities.

Mrs Annie Courtney (Social Democratic and Labour Party)

I welcome the Minister’s response, having visited the Brook Hall estate recently with the Enterprise, Trade and Investment Committee, and I am familiar with the green innovations being carried out there. Does the Minister recommend a subsidy for those using green energy in future?

Sir Reg Empey (UUP)

If we subsidise green energy, who will pay for it? People in Northern Ireland are paying a premium. Percentage-wise, we have the greatest take-up anywhere in the UK of people who are ready to pay above our existing high rates of electricity charges to get green electricity. That is a tremendous tribute to the many thousands of customers who have already done so. As Mrs Courtney knows, the Minister of Finance and Personnel has been encouraging Departments throughout the Government estate to take up a green tariff, and my Department is no exception.

However, not everyone can avail of a subsidy, because the current amount of electricity generated from renewables is very small. Our aim is to get that to grow. We must get it to a scale on which it can be economically produced and where the question of a subsidy will not arise. Presently, it is by and large at market risk with the exception of grants that are given for development in exactly the same fashion as we sometimes give grants to help businesses to develop. I need some convincing that the subsidy route is the right one.

Mr Ken Robinson (UUP)

Is the Minister aware that small suppliers of wind-generated electricity, who may have only one wind-generating item on their property, can contribute electricity to the grid for a return of approximately 1·8p for each unit sold? However, when they use electricity from that same grid, they are forced to buy each extra unit required for about 7p each. Will the Minister raise that with Northern Ireland Electricity (NIE) and the larger generators so that small suppliers can be further encouraged to contribute to the drive towards clean, renewable and sustainable energy?

Sir Reg Empey (UUP)

I am aware of the Member’s point. I have already taken it up with NIE. It says that that creates huge technical difficulties for the company. The distribution network would have to be able to take intermittent supplies of electricity that may or may not be produced in a particular area. There is a cost involved from NIE’s point of view. I understand the Member’s point, and I will undertake to raise it with NIE again. However, I understand NIE’s point that there would be huge technical difficulties if one had a whole series of small operators with on-off supply. The network is sometimes not technically capable of dealing with that. One also must keep levels of distribution and supply in balance in each area. There are huge problems with this, but technical adjustments to the network may be capable of resolving them. I will come back to the Member.