Tories unveil green economy plan

The Tory plans would see a national network of plug-points in the streets for electric cars, a £1 billion modernisation of the electricity grid with smart meters in every home and a new right to £6,500 worth of insulation for every household in the country.

A Conservative Green Paper for a low-carbon future also set out plans for a national network of wind-farms in large-scale Marine Energy Parks as well as high-speed rail links between North and South and a national nuclear waste site to clear the way for new atomic power plants.

Tories said their plans would allow the UK to hit its 2050 target of 80% cuts in CO2. It would be "selfish, irresponsible and morally wrong" not to make the investment now to ensure that future generations are spared the effects of global warming, said the Green Paper.

And it said that the country would benefit economically from becoming a world leader in new green technologies providing high-skilled jobs, as well as freeing itself from dependence on imports of carbon-based fuels from potentially unstable parts of the world like the Middle East, north Africa and Russia.

Mr Cameron said that the changes would transform the energy industry in the same way the internet has transformed communications, paving the way for a "genuinely low-carbon world".

Key to the Tory proposals, launched in an internet webcast by Mr Cameron, is the creation of a "smart" National Grid, adding computer intelligence to a system currently using technology dating back to the 1950s. The smart grid would permit consumers to use energy in the most efficient way, and even feed surplus power generated by solar panels or home-based wind turbines back into the grid, said Tories.

It would allow the creation of a national recharging network, with roadside plug-points, enabling Britain to "lead the world" in switching from traditional petrol and diesel vehicles to electric models. And it would make it easier for electricity suppliers to tap into energy from renewable sources like tidal and wind power and biogas.

Meanwhile, householders would be entitled to improve the energy efficiency of their homes with cavity wall or roof insulation, paying back the cost over a period of up to 25 years. Because consumers can expect immediate reductions of around £160 a year on gas and electricity bills, Tories expect that the repayments will be significantly outweighed by savings.

A Tory Government would also require carbon capture and storage technology to be fitted to all new coal-fired energy plants and would introduce new biogas plants using rubbish and farm waste to generate power to heat homes.