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100657

	registered interest
	date	23/10/2014
	answering body	Department for Energy and Climate Change
	answering dept id	63
	answering dept short name	Energy and Climate Change
	answering dept sort name	Energy and Climate Change
	hansard heading	Electricity Generation
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty’s Government, in the rules governing capacity market auctions, what measures have been included to guard against undue market dominance by any of the companies bidding in the capacity market mechanism; and whether OFGEM has a role in overseeing fair competition in the mechanism.
	tabling member printed	Baroness Worthington
	uin	HL2388
	answer	answer is ministerial correction date of answer 30/10/2014 answer text <p>The Capacity Market has been designed to mitigate the risks of gaming. We commissioned expert external advice from Charles River Associates on this issue and implemented the recommendations contained within that report which is available on the DECC website:</p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf" target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf</a>.</p><p>Anti-gaming measures include having in place an auction monitor who will ensure that the rules are properly followed by all participants during the auction. If the auction monitor were to find any irregularities, the Secretary of State ultimately has the ability to annul the auction after it has taken place.</p><p>Ofgem has the power to investigate any company bidding into the auction should they consider this necessary.</p> answering member printed Baroness Verma question first answered 30/10/2014 16:48:27 answering member 3790 label Biography information for Baroness Verma attachment 1 file name CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf title CRA Report on the Capacity Market Gaming Risks
	tabling member	4235 label Biography information for Baroness Worthington

100655

	registered interest
	date	23/10/2014
	answering body	Department for Energy and Climate Change
	answering dept id	63
	answering dept short name	Energy and Climate Change
	answering dept sort name	Energy and Climate Change
	hansard heading	Electricity Generation
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty’s Government, in the list of electricity generating plants that have pre-qualified to bid in to this year’s planned capacity auction, of the plants eligible for 15 year contracts, what proportion are new build compared to those subject to substantial refurbishments.
	tabling member printed	Baroness Worthington
	uin	HL2386
	answer	answer is ministerial correction date of answer 30/10/2014 answer text <p>Information relating to the eligibility of each plant that has successfully prequalified and is eligible for a 15 year capacity agreement is publicly available on National Grid’s website as the Delivery Body for the Capacity Market.</p><p>It should be noted that E.ON, the owners of Ratcliffe-on-Soar, have publicly stated that they will not seek an agreement in excess of 3 years.</p> answering member printed Baroness Verma question first answered 30/10/2014 17:14:40 answering member 3790 label Biography information for Baroness Verma
	tabling member	4235 label Biography information for Baroness Worthington

100654

	registered interest
	date	23/10/2014
	answering body	Department for Energy and Climate Change
	answering dept id	63
	answering dept short name	Energy and Climate Change
	answering dept sort name	Energy and Climate Change
	hansard heading	Electricity Generation
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty’s Government, in the list of electricity generating plants that has pre-qualified to bid in to this year’s planned capacity auction, how many gigawatts of existing coal plant are eligible for contracts of over one year and how many gigawatts of new gas capacity have qualified to bid for 15 year contracts; what is the total gigawatt capacity of new plant qualifying for 15 year contracts that is under the current threshold for the application of emissions controls under the European Emissions Trading scheme; and what is the breakdown in terms of fuel type of these smaller pre-qualifying units.
	tabling member printed	Baroness Worthington
	uin	HL2385
	answer	answer is ministerial correction date of answer 30/10/2014 answer text <p>In total 67.3GW of capacity has prequalified to participate in the first Capacity Market auction in December this year.</p><p>This is extremely positive and indicates that the auction will be competitive, which will help to keep costs down while providing security of supply for consumers.</p><p>Information relating to the eligibility of each plant that has successfully pre-qualified is publicly available on National Grid’s website as the Delivery Body for the Capacity Market.</p> answering member printed Baroness Verma question first answered 30/10/2014 16:46:25 answering member 3790 label Biography information for Baroness Verma
	tabling member	4235 label Biography information for Baroness Worthington

100658

	registered interest
	date	23/10/2014
	answering body	Department for Energy and Climate Change
	answering dept id	63
	answering dept short name	Energy and Climate Change
	answering dept sort name	Energy and Climate Change
	hansard heading	Electricity Generation
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty’s Government, given the requirements of the Climate Change Act 2008, how they will ensure that all new and refurbished power generating capacity in the United Kingdom is contributing towards the meeting of carbon targets; and how they will ensure that higher carbon infrastructure is not being locked in that will make the meeting of carbon targets harder and more expensive in the future.
	tabling member printed	Baroness Worthington
	uin	HL2389
	answer	answer is ministerial correction date of answer 05/11/2014 answer text <p>The Climate Change Act established a legally binding target to reduce the UK’s greenhouse gas emissions by at least 80% below base levels by 2050. The Act introduced a system of carbon budgets which provide legally binding limits on the amount of emissions that may be produced in successive five-year periods, setting the UK on a least cost trajectory to 2050.</p><p>A comprehensive package of policies has been put in place to meet future carbon budgets, which includes reducing the carbon intensity of power generation.</p><p>Electricity market reform (EMR) provides support for all low carbon technologies including nuclear, Carbon Capture Storage and renewables. The EMR delivery plan also provides an outlook to 2030 illustrating different scenarios for power sector decarbonisation consistent with our carbon plan and budgets.</p><p>This approach increases energy security and minimises costs to taxpayers and consumers, while reducing emissions.</p> answering member printed Baroness Verma question first answered 05/11/2014 14:26:05 answering member 3790 label Biography information for Baroness Verma
	tabling member	4235 label Biography information for Baroness Worthington

100613

	registered interest
	date	23/10/2014
	answering body	Department for Energy and Climate Change
	answering dept id	63
	answering dept short name	Energy and Climate Change
	answering dept sort name	Energy and Climate Change
	hansard heading	Electricity Generation
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty’s Government what are the relative current delivered costs of electricity delivered to users in the United Kingdom produced respectively by nuclear fusion, offshore electricity, solar photovoltaic, gas and coal.
	tabling member printed	Lord Hunt of Chesterton
	uin	HL2344
	answer	answer is ministerial correction date of answer 04/11/2014 answer text <p>DECC’s most recently published figures for the levelised costs of electricity generation for different technologies are available in the DECC Electricity Generation Costs (December 2013) report:</p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/269888/131217_Electricity_Generation_costs_report_December_2013_Final.pdf" target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/269888/131217_Electricity_Generation_costs_report_December_2013_Final.pdf</a></p><p>Table 1 below is taken from this report, and shows a range of levelised cost estimates for nuclear offshore wind, solar photovoltaic, and gas projects commissioning in 2014 and 2020 at technology specific hurdle rates (pre-tax real). Estimates are not published for nuclear projects commissioning in 2014, or coal projects without carbon capture and storage commissioning in 2014 or 2020 given there will be no new projects commissioned in this timeframe. DECC does not publish cost estimates for nuclear fusion.</p><p><strong><em>Table 1: Levelised cost estimates for different technologies, technology specific hurdle rates, sensitivities around high/low capital costs</em></strong></p><table><tbody><tr><td><p>£/MWh</p><p>£2012</p></td><td><p>Projects commissioning in 2014,</p><p>£/MWh</p></td><td><p>Projects commissioning in 2020,</p><p>£/MWh</p></td></tr><tr><td><p>Nuclear</p></td><td><p>n.a.</p></td><td><p>79 – 102</p></td></tr><tr><td><p>Offshore wind Round 2</p></td><td><p>131 - 168</p></td><td><p>105 – 135</p></td></tr><tr><td><p>Offshore wind Round 3</p></td><td><p>144 - 189</p></td><td><p>115 - 152</p></td></tr><tr><td><p>Large scale solar PV</p></td><td><p>114 - 131</p></td><td><p>83 - 94</p></td></tr><tr><td><p>CCGT (gas) *</p></td><td><p>73 - 76</p></td><td><p>79 - 83</p></td></tr></tbody></table><p><em>* CCGT: Combined Cycle Gas Turbine</em></p><p>The levelised cost of a particular generation technology is the ratio of the total costs of a generic plant to the total amount of electricity expected to be generated over the plant’s lifetime (per megawatt hour). Levelised cost estimates are highly sensitive to the assumptions used for capital costs, fuel and EU ETS allowance prices, operating costs, load factor, discount rate and other drivers and this means that there is significant uncertainty around these estimates. Estimates of levelised costs differ from the retail electricity prices that are paid by consumers (i.e. on delivery of electricity).</p> answering member printed Baroness Verma question first answered 04/11/2014 15:14:30 answering member 3790 label Biography information for Baroness Verma attachment 1 file name Electricity Generation Costs Report December 2013.pdf title Electricity Generation Costs Report December 2013
	tabling member	2543 label Biography information for Lord Hunt of Chesterton