§ 1. Mr. Stoddartasked the Secretary of State for Energy whether any studies are being made by his Department and the Central Electricity Generating Board to see what financial savings can be made by re-planting existing power stations when they reach the end of their planned life rather than replacing them with completely new power stations.
§ The Under-Secretary of State for Energy (Mr. Norman Lamont)I am advised by the CEGB that, in general, its assessments show the replanting of older stations for power generation to be less economic than constructing new nuclear or coal-fired generating capacity. The Department discusses this subject with the board from time to time.
§ Mr. StoddartIs the Under-Secretary aware that I find that reply entirely surprising, bearing in mind the enormous amount of capital involved in land and buildings at existing power stations? Will he get in touch with the CEGB and examine its figures, because I feel sure that significant savings could be made in the Government's capital programme?
§ Mr. LamontOf course I shall do that was not raying that there were no circumstances in which replanting would be economic. An example of where it would be is perhaps the Drakelow C station. No decision has yet been made on that station, but studies indicate that re-planting there might be economic. That does not mean that it would earn the same rate of return as a new nuclear station. Those are the sorts of considerations that have to be borne in mind.
§ Mr. RostAs many power stations are near town centres or industrial sites and the CEGB no longer wants to run them, because it does not regard them as economic, what discussions has my hon. Friend had with industry or local authorities to make sure that the CEGB can sell those lower stations an scrap value, so that they can be converted into combined heat and power stations by those who wish to do that?
§ Mr. LamontThat matter is being discussed by the CEGB with a number of parties. My hon. Friend is right to say that in some city centre locations it would be 606 possible for power stations that are no longer required to be used for CHP schemes. They might have a role to play during the construction of the heat network of any CHP scheme. The cost of maintaining a power station that has already served its design life might be too high for a long-term role, but, my hon. Friend certainly has a point.