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Energy: Electricity Generating Costs

Volume 687: debated on Tuesday 28 November 2006

asked Her Majesty's Government:

By how much electrical generating costs will rise through the incorporation of carbon sequestration. [HL33]

Carbon capture and storage (CCS) technologies have not been tested in the energy sector, so generation costs are uncertain. In addition, there are several different carbon sequestration technologies, each with different characteristics and costs. Work undertaken for the Government's energy review looked at the costs of CCS compared with CCGT generation using a range of capital and operating costs and fuel price and carbon price sensitivities. A summary of this is given below.

Base case: central fuel price assumptions, no carbon price included.

CCS technology

Percentage increase in generation cost of CCS technology compared with CCGT generation

New PF plant with FGD and CCS

18 to 43%

Retrofit existing PF plant with FGD with CCS

3 to 29%

New IGCC with CCS

30 to 49%

New CCGT with CCS

39 to 75%

Note: Range of cost increases represents high and low capital and operating cost sensitivities.