Brian Wilson: "Confidence to invest"

Speaking at the opening, Mr Wilson said: "This is a major signal today that hydro electric power still has a huge part to play in the government's strategy for renewable energy.

"The expansion of hydro was one of the great visionary acts of the post war period. The politicians, engineers and navvies of that era bequeathed to us the major source of renewable energy down to the present day.

"This announcement ensures that their legacy will continue to serve us, far into the 21st century."

He added: "Refurbished hydro electric power plants are roughly 10% more energy efficient.

"These new measures will wash away the cobwebs on old hydro electric power plants. They will give companies the confidence to invest in this forward looking industry."

Fuel poverty

The government expects to create a �1bn market for renewable energy by 2010 and is investing more than �260m into green energy over the next three years.

In a separate move, Mr Wilson also called on power companies to act on consumer fears over high fuel bills.

He said more innovation must be shown by companies to tackle "the scourge of fuel poverty".

New emphasis on renewable energy

The government considers anyone to be living in fuel poverty if they spend 10% or more of their income on fuel.

According to official estimates, about 4.5m people in Britain are affected.

Mr Wilson confirmed that he had asked the gas and electricity regulator, Ofgem, to produce a report on tackling fuel poverty.

"We will now publish a major Fuel Poverty Strategy in the autumn and I want to work with the regulator to identify solutions which can make a difference quickly," he said.

"I have asked the energy regulator Callum McCartney to bring together a strategy to tackle fuel poverty as it should be at the top of our social agenda."