§ Baroness Miller of Hendonasked Her Majesty's Government:
What is the average cost per unit of generating electricity in existing coal-fired power stations and in existing gas-fired power stations; and [HL1602]
What is the highest cost per unit and what is the lowest cost per unit of generating electricity in existing coal-fired power stations; and [HL1603]
What is the highest cost per unit and what is the lowest cost per unit of generating electricity in existing gas-fired power stations; and [HL1604]
What is the estimated cost of production of electricity in new coal-fired power stations currently being erected or being planned. [HL1605]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)The costs of generating electricity from different power stations reflect a number of technical and commercial factors and such information is not available through official sources. However, in paragraphs 5.26 to 5.42 of the Government's October 1998 White Paper,Conclusions of the Review of Energy Sources for Power Generation and Government 22WA response to fourth and fifth Reports of the Trade and Industry Committee (Cm 4071), the cost estimates for coal and gas-fired generation provided by respondents to the June 1998 Consultation Document, Review of Energy Sources for Power Generation, are discussed.
The range of estimates provided by respondents for the annual avoidable cost of existing coal-fired generation, assuming baseload operation, was 1.4 to 1.95 p/kWh. Several estimates were close to 1.6 p/kWh. Estimates for the retrofitting of flue gas desulphurisation (FGD) equipment, if that were necessary to meet targets for reduction in sulphur emissions, lay in the range of an extra 0.3 to 0.5 p/kWh.
With regard to the costs of generation from existing combined cycle gas turbine (CCGT) stations, paragraph 5.37 of the White Paper states that,
On balance, it would appear that in most circumstances existing gas plant is cheaper to operate than existing coal plant but that this may not always be the case and that the balance could change in future if the cost of gas, relative to that of coal, were to increase".For open cycle gas turbine (OCGT) stations, some respondents felt that at baseload operation the costs of generation would be around 2.0 p/kWh, though this figure may be optimistic.
Many respondents estimated the cost of new coal-fired generation to be close to 3.0 p/kWh, with a range from 2.6 to 3.25 p/kWh.
The White Paper also discusses how costs may vary according to the load factor at which stations are operated.
§ Baroness Miller of Hendonasked Her Majesty's Government:
What limits there are at present or contemplated on the use of foreign coal in existing or future coal-fired powered stations. [HL1606]
§ Lord Sainsbury of TurvilleThe Government's policy on fuel sources for power generation I s set out in the White Paper of October 1998,Conclusions of the Review of Energy Sources for Power Generation and Government response to fourth and fifth Reports of the Trade and Industry Committee (Cm 4071).
Paragraph 8.32 of the White Paper makes it clear that the choice of coal sources for power generation is a commercial matter for the generating companies concerned and as such the Government impose no limits on this choice.