Dave shows us his green credentials!

The Conservatives have proposed developing an "electricity internet" as a smart grid to help unlock "large scale use of renewables" by 2050. Party leader David Cameron outlined a new policy green paper today proposing to manage demand on the grid with more intelligence than the current distribution networks. Smart grid and smart meter systems would help more homes, businesses, schools and hospitals get involved in generating their own renewable energy, the paper suggested. And, it would allow a "new era" of plug-in hybrid or full-electric cars, the Tories said.

Mr Cameron said his party had a "vision" of Britain being less dependent on imported oil and gas with more decentralised energy generation. The leader of the opposition said: "It is not a plan to micromanage Britain into a low carbon economy - because we know that governments cannot effectively micromanage radical economic change.

"But we can do two things that governments can do to bring about real change in the energy economy - to create new networks, and to create new signals for the market, in electricity, in heat, in transport, and in buildings," Mr Cameron added.

Much of the Tories' green paper includes ideas already being developed by either the government or industry - feed-in tariffs for micro-generation, a "heat tariff" for low carbon heat, the development of offshore electricity grids and a recharging network for electric vehicles. However, the paper did add a different slant to some of the government's approaches, such as proposing more support for second generation biofuels.

The Tories want a "more ambitious" Renewable Transport Fuels Obligation - the government is backing a more "cautious" RTFO. There was a stronger pledge on carbon capture and storage - to include the fledgling technology in "at least" three new coal-fired power stations to provide 5,000MW of new capacity. The paper did support development of new nuclear plants.

And, the Tories want to set up a network of "large scale marine energy parks", funded by the as-yet untouched £50 million Marine Renewables Deployment Fund, to foster wave and tidal projects from university trials through to full-scale commercial projects.

Regarding wind power, the green paper was a little less enthusiastic, stating that the potential contribution of onshore and offshore wind farms had been "questioned", with concerns about the amount of time wind turbines generate power and the back-up systems that might be needed.

The paper suggested that the Renewables Obligation was generating "undue" returns for onshore wind generators, while "under-rewarding" offshore generators. It also cast doubt on the practicality of the government's ambitions for large-scale offshore wind development.

Nevertheless, without going into specifics, the Tories did state: "We believe that both onshore and offshore wind have a significant role to play in providing Britain with a low carbon electricity supply industry."

Regarding existing buildings, the Tories want to see every home entitled to fit up to £6,500 worth of approved energy efficiency improvements, repaid through fuel bills over a 25-year period.

New rules for companies to meet energy efficiency targets by funding improvements in homes of their employees were also within the Tory plans.

Feed-in tariffs would support microgeneration projects, based on 20-year tariffs with regular reviews of tariff levels. The Microgeneration Certification Scheme would be reformed to cut red tape and reduce admin fees, while the Energy Performance Certificates scheme would be run without the "encumbrance" of being included within Home Information Packs.

And, the Tories would run a "just do it" scheme for retrofitting low-energy systems like insulation or low-energy boilers for existing housing stock.

Electricity producers said they would have liked more specifics on Tory plans for investment in generation facilities, but backed Mr Cameron's "ambitious plans" for developing smart grids.

David Porter, chief executive of the Association of Electricity Producers said he was "relieved" that the Conservatives now appeared to be "fully supportive" of the Renewables Obligation.

But, he said requiring coal power stations to use carbon capture and storage technology "before it is proven at an industrial scale" was the "wrong approach".

"We need to demonstrate CCS successfully before it can be deployed on a large scale. The proposed extension of support for CCS is helpful, but if it is linked to mandatory emission standards, as seems to be the proposal, the required number of projects might not come forward," Mr Porter said, adding that carbon emissions from the power sector were already capped through the EU Emissions Trading Scheme.

Tory Green Paper: Main points
"Electricity internet" – adding computing intelligence to electricity networks by introducing smart grid and smart meters in homes;
Feed-in tariffs – paying people who produce energy from renewables
National recharging network to replace traditional cars with electric and plug-in hybrids
New low carbon energy sources – biogas to replace up to 50% of residential gas heating
Low carbon buildings, transport and commerce – every home to be fitted with up to £6,500 of energy efficient improvements
Biogas production should also have more support, the Tories said, with its own feed-in tariff and open access to the gas networks.