The need for investment in renewables and other low carbon technologies to meet our commitment to reduce carbon emissions by 2050 is clear. But I also have to make sure that we keep the lights on and ensure energy bills are as low as possible for the many people who are feeling the pinch.
So the package that I have announced today of the level of subsidies for renewable technologies had to strike the right balance between our need to reduce carbon emissions, our energy security and ensuring affordable bills. I think we have done that. The rate of subsidy for technologies such as onshore and off shore wind has dropped reflecting the pressure we are putting on developers to drive down costs. But the levels of subsidy we are setting are based on evidence not on prejudice. Household bills over the period 2013-17 will be lower than they would be at current subsidy levels.
But I also know many local communities are concerned that decisions about onshore wind farms do not take adequate account of local concerns. That is why we amended the national planning policy framework so that local communities views are taken more into account and legislating so that business rates from renewable generators are retained in the local area. That is real localism but I want to see if we can go further. So I have also decided to launch a call for evidence to see how local communities can have more of a say over and benefit economically from the development of onshore wind farms.
I also see a role for gas to help our energy security and keep the lights on. As our high carbon emission coal plants are withdrawn over the next few years gas will help to fill the gap. It will also play an important role in back up for the intermittent power supply coming from some renewable generation such as windpower. Longer term after 2030 gas can continue to play an important role when combined with carbon capture and storage technology.
Some people seem to think that shale gas will solve all our problems and usher in a period of cheap energy. There is no doubt that the discovery of shale gas worldwide has opened up new opportunities. But most reputable forecasters such as the International Energy Agency say that because of increases in demand for energy in countries such as China, India and Brazil we will still see prices rising. We would not be doing consumers any favours by placing all our bets on shale gas. We must have a balanced approach.
Renewable energy has the potential to be a great British success story. As Liberal Democrats in government we are not just delivering the greenest government ever but also ensuring that we attract green investment and jobs to get our economy moving again.
* Edward Davey is Secretary of State for Energy and Climate Change, and MP for Kingston and Surbiton