Question

To ask the Secretary of State for Energy and Climate Change, what comparative assessment she has made of the cost of generating electricity from existing (a) conventional hydro-electric and (b) gas fired plants.

In comparing the costs of different electricity technologies in the future, DECC typically use the levelised costs of electricity generation. Levelised costs include capital and operating costs over the lifetime of a plant, as well as DECC estimates of projected fuel and carbon costs.

The most recent levelised cost estimates are available in the DECC Electricity Generation Costs report, available at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/269888/131217_Electricity_Generation_costs_report_December_2013_Final.pdf

These include levelised cost estimates for (a) conventional hydro-electric sources and (b) gas fired plants.

We are currently undertaking a comprehensive review of our evidence on levelised costs of electricity generation.

The above levelised costs however do not take into account all of the wider positive or negative impacts that a plant may impose on the electricity system. So far, DECC’s electricity modelling has considered these wider whole system impacts through a system wide cost-benefit analysis. DECC is currently undertaking a project, which aims to further DECC’s understanding of the whole system impacts of electricity generation technologies.