£1 bn "interactive grid" to power Tories' low carbon economy

Speaking in a live webcast, today, the leader of the Conservative Party launched plans for a decarbonised economy, in which the UK’s electricity networks would be transformed in much the same way as analogue television has been transformed by digital and where every home in Britain would be fitted with up to £6,500 of energy efficient improvements.
 
He said this energy revolution, where electricity needs would be met as and when they were needed and switched off when they weren’t, could create hundreds of thousands of new green collar jobs in the UK by 2020.

He said the Conservatives would, in addition, back a system of feed-in tariffs, in which businesses and households that produced energy from renewable resources would be paid for delivering it to the National Grid.

He said his party planned to launch a national recharging network to incentivise people to switch from traditional cars to electric and plug-in hybrid vehicles.

And he proposed that 50 per cent of UK residential gas heating would be produced from biogas coming from farm and food wastes.

He said his party’s green plan paved the way for large-scale use of renewable energy sources, because it contained a worldwide web-style electricity system at the core of it.

“It is made possible by an interactive grid,” he said. “Because of investment in a smart grid and smart metering, you can see how electric cars and how renewable energy will work.”

But he also said the plan had to be flexible. “The Government has got to put in place an electricity network, but if we plan the low carbon economy [too much] we won’t get it right.  It is about creating incentives and frameworks so you can deliver a low carbon economy.”

Commenting on the plans, Greg Clark, the Shadow Energy and Climate Change Secretary, added: "What we are proposing today is nothing less than an environmental and energy revolution, which would make Britain a world leader in moves towards creating a low carbon economy. It is a plan that will help create hundreds of thousands of jobs, raise skills and improve Britain's competitiveness."

Some of those working at the forefront of green technologies welcomed the Conservative’s plans.

Tom Delay, chief executive of the Carbon Trust, said he welcome the broad ideas set out in it. “We know from our work over the past seven years that action on cutting carbon brings direct short-term economic benefit and will create new technologies and industries. We look forward to contributing to the consultation and will be making suggestions as to how business energy efficiency can be dramatically improved and how the UK can harness private sector investment to become a world leader in low carbon technology."

Leading business responded more cautiously, though. “A smart grid is an interesting proposal that may help businesses and consumers reduce fuel consumption but would need to be cost-effective,” commented Neil Bentley, CBI director Business Environment.