(3 days, 22 hours ago)
Lords ChamberI am afraid the noble Lord will have to wait for about a week before the warm homes plan comes out. That will contain, so I am reliably informed, a great deal of detail about precisely the areas of heat, efficient low-carbon homes, heat pumps—all the sorts of things that are the other side of the energy revolution. We hope they will begin to be combined together into coherent programmes, working with each other to ensure that, among other things, that greatest piece of low-carbon energy—the energy you do not use—is properly incorporated into overall programmes.
I assure the noble Lord that this is uppermost in our minds. We are aiming, as we always have, to develop a comprehensive palette of policies that will deal with all aspects of low-carbon energy, energy security and energy efficiency. Indeed, the noble Lord will note that the AR7 announcement is not complete, inasmuch as there are further pots to be reported on, including solar, tidal, geothermal and various other things, in the next week or so. So I hope we will come back to this Chamber and compare and contrast notes on the picture that we will have when those two things have actually happened. I think the noble Lord will be pretty pleased with what will result from it.
My Lords, I commend the Minister on this Statement and welcome it very much. It is a welcome return from the terrible days when you put out an auction and nobody played the game. It really was quite heartbreaking when we had those dreadful doldrum days.
I shall focus on something that the noble Lord, Lord Moynihan, raised, which is the increased demand for energy, particularly that caused by data and AI centres. The one thing we must not allow to happen is that we accept that that is a given. We have been fairly effective in keeping the whole concept of energy efficiency alive, and the warm homes standard is going to be a good example of that. The question about the predictions of the energy demand of AI needs to be approached in a different way that says we cannot simply see demand increase but must adopt measures that mean that some of these centres are using not only the most up-to-date modern technologies but are encouraging future technologies in order to reduce their impact on the environment, by not only energy use but water use. I would love to say that photonics is the answer if I only knew what photonics is, but technologies are being talked about that will impact on AI demand. I would appreciate a comforting voice from the Minister that at this very new point in seeing a further increase in demand, we will not lose sight of trying to examine seriously possible technologies.
(1 month, 1 week ago)
Lords ChamberThe noble Baroness will know that Drax is the largest single power producer in the UK and is responsible for about 5% of UK power. That means that it uses an enormous amount of biomass in its process, having converted from coal some while ago. The question, then, is where Drax gets its biomass from, bearing in mind that the amount of biomass that is being grown in this country falls far short of the desideratum in terms of sourcing—particularly in view of the length of time that it has taken to grow that biomass. Therefore, sourcing from abroad appears to make some sense, though not necessarily for the long-term future.
My Lords, the Minister’s own department is consulting on sustainability criteria for biomass as we speak, which will inform future subsidy eligibility and reporting requirements for the rest of the market. In addition, the Financial Conduct Authority is still investigating Drax’s biomass sourcing statements. What safeguards have been built into the new Drax contract that covers 2027-31? Will the results of these two inquiries produce changes to the terms of the recently signed Drax contract?
I cannot assure the noble Baroness that terms will be changed during the new contract. However, the LCCC will be responsible for making sure that the 100% sustainability criteria that have been entered into in the new contract will be strictly observed. That is a substantial step forward from the previous oversight arrangements.