HC Deb 14 April 1986 vol 95 cc570-1
9. Mr. Rost

asked the Secretary of State for Energy if he will list the combined heat and power projects which the Central Electricity Generating Board and area boards have adopted and supported, under the provisions of the Energy Act 1983.

Mr. Goodlad

This is primarily a matter for the boards themselves. I understand that since May 1983 they have appraised 19 potential combined heat and power projects, of which six remain under active consideration. The chairman of the Electricity Council has told me that boards will continue their efforts to identify economic CHP projects in line with the provisions of the Energy Act 1983 and their other statutory duties.

Mr. Rost

Is my hon. Friend satisfied that where independent feasibility studies conducted by city CHP consortia show a rate of return as good as or better than electricity-only new power stations, CHP schemes will be adopted and supported?

Mr. Goodlad

The Government want to see the development of CHP schemes that make commercial sense. That is why the Energy Act 1983 placed a duty on electricity boards to adopt and support viable projects and created a guaranteed market for the sale of electricity from CHP schemes. The Act provides that boards may adopt and support only those projects that meet their financial criteria. Boards apply the same financial criteria to potential investment in CHP as to their other expenditure. As I have said, six schemes are under scrutiny at the moment. It is for boards to evaluate these and consider what part they should play consistent with their statutory duties.

Mr. Frank Cook

Will the Minister tell the House the size of the annual budget allocated for research, development, demonstration and monitoring of CHP? Will he compare that with the annual budget for other alternative renewable and clean sources of energy?

Mr. Goodlad

In addition to what I have said, I should say that we have made available grant-aid of £250,000 each to consortia from Leicester, Edinburgh and Belfast towards the preparation of prospectuses for CHP district heating schemes.