§ Norman BakerTo ask the Secretary of State for Trade and Industry if she will calculate the cost of generating one unit of electricity from a new-built(a) nuclear power station, (b) coal-fired power station, (c) gas-fired power station, (d) offshore wind facility and (e) onshore wind facility; assuming average size in each case, and the write-off of capital costs over a 30-year period. [89088]
§ Mr. Wilson[holding answer 8 January 2003]: The costs of generating electricity are a commercial matter for generators.
Costs can be estimated on a variety of bases, and will vary from plant to plant. For example, figures can include all cost items, including depreciation and return on capital, or can refer only to the additional costs associated with continued operation. The costs of plant using fossil fuel will vary as fuel prices change.
Estimates of the cost of generating electricity from new and existing coal and gas-fired power stations were published in chapter 5 of the 1998 White Paper, "Conclusions of the Review of Energy Sources for Power Generation"(http://www.dti.gov.uk/energy/publications/whitepapers/review_sources/chpt05.pdf)
This suggested that the cost of new gas-fired generation might be in the range 1.8 to 2.2p/kWh, and new coal stations between 2.6 and 3.25p/kWh.
More recent estimates of the cost of generation costs from different types of plant are contained in the PIU Energy Review and a report by an inter-departmental analysts group, both of which were published in February 2002.
The PIU estimated the costs of gas-fired generation, new nuclear build and onshore and offshore wind generation as follows:
Estimated generation cost (p/k Wh) Gas 2 to 2.3 Nuclear 2.5 to 4 Onshore wind 1.5 to 2.5 Offshore wind 2 to 3 Note:
Estimate for onshore and offshore wind are for developments in 2020 and exclude additional costs occurring as a result of their intermittent nature.
Both reports are available in the Libraries of the House.
http://www.cabinet-office.gov.uk/innovation/2002/energy/report/index.htm
http://www.dti.gov.uk/energy/greenhousegas/index.shtml