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Energy: Lifetime Costs

Volume 685: debated on Monday 16 October 2006

asked Her Majesty's Government:

What are their latest estimates for the lifetime costs per tonne of carbon saved per year, compared with average current lifetime costs of fossil fuel generation for (a) onshore wind power; (b) offshore wind power; (c) fossil fuel based combined heat and power (CHP); (d) renewable based CHP; (e) nuclear power; (f) photovoltaics; (g) coal or gas firing with carbon capture and storage; and (h) a range of energy efficiency measures; and whether those estimates changed between the publication of the Energy White Paper in 2003 and the publication of the outcome of the energy review in July. [HL7463]

The energy review modelled new large-scale technologies that have the potential over time to become less expensive and, in turn, to play a major role in UK electricity generation, including new-generation nuclear, cleaner coal, and gas and coal with carbon capture and storage. In addition, we modelled gas-fired and coal-fired plant as “base cases” for comparison.

The energy review did not publish estimates for the lifetime costs per tonne of carbon saved per year, so a direct comparison with estimates in the Energy White Paper 2003 is not possible. The issue of carbon abatement costs will be, however, looked at in the context of the forthcoming Energy White Paper.