HC Deb 16 June 1986 vol 99 c387W
20. Mr. Barron

asked the Secretary of State for Energy what progress has been made on the lead city schemes for combined heat and power; and if he will make a statement.

Mr. David Hunt

I refer to the answer I gave today to my hon. Friend the Member for Glanford and Scunthorpe (Mr. Hickmet).

43. Mr. Peter Bruinvels

asked the Secretary of State for Energy if he will estimate the jobs created and money to be saved in the first five years of combined heat and power in (a) Leicester, (b) Newcastle and (c) Edinburgh.

Mr. David Hunt

Estimates in Energy Paper No. 53 indicate that additional local employment of some 3,000 jobs might result over a 12 to 15 year period from installing the heat distribution systems and consumer connections in all nine cities studied. Leicester would account for approximately 175 extra jobs with some 300 extra jobs in both Newcastle and Edinburgh over the same timescale. Other employment would arise from the construction of new CHP plant and heat only boiler plant. A more precise estimate of employment prospects arising from CHP/DH schemes must await the outcome of the studies presently under way in those cities.

Energy Paper No. 53 estimated the overall rates of return for each of the nine cities studied on an assumed 35-year life for all schemes. During the first five years of a CHP/DH development the cumulative cash flow may be negative as expenditure on plant and construction is likely to exceed income from sales. Again, more precise estimates must await the outcome of current studies.