§ Lord Hardy of Wathasked Her Majesty's Government:
What action they will take to ensure that development of newer forms of renewable energy proceeds and, in particular, to promote the use of biomass by ensuring that outlets for willow to be used as a renewable energy source will be available within a reasonable timescale. [HL3220]
§ The Minister of Science, Department of Trade and Industry (Lord Sainsbury of Turville)The Government are taking powers through the Utilities Bill to place a new obligation on electricity suppliers to supply a set proportion of their electricity supplies from renewable sources. This will create an assured market for renewable energy, initially to 2025.
The Government have increased the budget for their new and renewable energy research and development programme to a total of £32 million over this and the next financial year. Work supported includes a commercialisation programme designed to bring new technologies closer to the market. The Government also fund the Engineering and Physical Sciences Research Council which spends £3.5 million each year on research into new and renewable forms of energy. In addition, the Government are considering the scope for more specific support for offshore wind and energy crops.
The reforms to the common agricultural policy which we obtained last year in Agenda 2000 include a new rural development regulation which, among other things, enables us to provide support for the development of energy crops. The Minister of Agriculture announced last autumn that he planned to introduce a new energy crops scheme under the England Rural Development Plan, costing around 67WA £29 million over the six-year life of the plan. The main element is a planting grant which will be available, inter alia, for short-rotation willow coppice. This is subject to the outcome of Spending Review 2000.