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Renewable Energy

Volume 498: debated on Monday 26 October 2009

To ask the Secretary of State for Energy and Climate Change what the evidential basis is for each assumption underlying the determination in the Low Carbon Transition Plan that energy demand will remain at 370TWh in 2020. (294376)

[holding answer 20 October 2009]: The projections used in the Low Carbon Transition Plan are produced using the DECC Energy Model. This uses the latest assumptions of economic growth, fuel prices, estimated policy impacts and elasticities of demand.

The energy demand of 370 TWh relates to electricity demand. In the baseline scenario, electricity demand is projected to increase by 53 TWh between now and 2020 but policies announced in the Low Carbon Transition Plan are estimated to save 54 TWh in 2020. These projections use economic growth assumptions consistent with the 2009 Budget and fossil fuel price assumptions published by DECC.