§ Sue DoughtyTo ask the Secretary of State for Environment, Food and Rural Affairs (1) what assessment she has made of the impact on carbon dioxide emissions of the exemption from the climate change levy of electricity from combined heat and power plants sold through licensed electricity suppliers; [53734]
(2) what assessment she has made of the impact on the total level of generation from combined heat and power sold through licensed electricity suppliers of its exemption from the climate change levy. [53733]
§ Mr. BoatengI have been asked to reply.
Granting Good Quality Combined Heat and Power (GQCHP) a full exemption from the Climate Change Levy (CCL) will encourage the use of this energy-efficient technology, and support the achievement of the Government's target of at least 10 gigawatts (GWe) of GQCHP by 2010. GQCHP achieves a 25 to 35 per cent. reduction in primary energy use relative to traditional forms of electricity generation, and therefore produces less carbon emissions per GWe. The amount of carbon saved depends on which technologies and fuels are displaced by GQCHP.
The DTI and DEFRA are assessing the economic and environmental potential of GQCHP under various energy price and policy scenarios, including the full exemption from CCL. This work will be published shortly, alongside the Government's CHP Strategy.