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<p>The Contract for Difference and Renewables Obligation levy payments over 25 years
will depend on a number of factors for example the post-2020 deployment pathway, strike
price degression, long term electricity prices and the timing of moves to a competitive
price discovery process). For a detailed assessment of EMR, including cost-benefit
analysis and consumer bill impacts, please refer to the Delivery Plan Impact Assessment1.</p><p>The
Electricity Market Reform Delivery Plan2 set out strike prices for renewable technologies
for the period 2014/15 to 2018/19. They provide a basis for renewable electricity
to achieve at least 30 per cent of generation by 2020, in line with the EU renewables
target. The generation mix beyond the period of the first Delivery Plan, from 1st
April 2019, will be influenced by how individual technologies develop in the coming
decade. We are committed to maximising value for money for consumers.</p><p>Chapter
6 of the Delivery Plan describes potential deployment requirements beyond 2020. It
explores three levels of carbon intensity and three technology deployment scenarios
as an illustration of a range of alternative pathways to meeting our post-2020 objective
to reduce carbon emissions by at least 80% of 1990 levels by 2050. These scenarios
are indicative: the electricity generation mix through the 2020s is unlikely to match
any one of these scenarios exactly.</p><p>As an indicative estimate, the ranges of
costs in the six scenarios set out in Chapter 6 of the Delivery Plan are shown in
the table below3. Costs are aggregated over the next 25 years from 2015 to 2040, discounted
to 2012 and in 2012 prices.</p><p><strong>Indicative range of levy payments from 2015-2040
(£bn, real 2012)</strong></p><p> </p><table><tbody><tr><td> </td><td><p>RO payments</p></td><td><p>CfD
payments</p></td></tr><tr><td><p>Nuclear</p></td><td><p>0</p></td><td><p>1-47</p></td></tr><tr><td><p>Offshore
wind</p></td><td><p>12-13</p></td><td><p>17-79</p></td></tr><tr><td><p>Onshore wind</p></td><td><p>11-12</p></td><td><p><2</p></td></tr><tr><td><p>Hydro</p></td><td><p><1</p></td><td><p><1</p></td></tr><tr><td><p>Large-scale
solar PV</p></td><td><p><2</p></td><td><p><2</p></td></tr></tbody></table><p><em>Source:
DECC Modelling</em></p><p>The Levy Control framework, already agreed to 2020/21, is
in place to control future costs to consumers and ensure these policies achieve their
objectives cost effectively and affordably.</p><p><em><strong>[1]</strong></em><em>
<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/288463/final_delivery_plan_ia.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/288463/final_delivery_plan_ia.pdf</a></em></p><p>
</p><p> </p><p> </p><p><em>2 </em><em><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/268221/181213_2013_EMR_Delivery_Plan_FINAL.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/268221/181213_2013_EMR_Delivery_Plan_FINAL.pdf</a></em></p><p>
</p><p> </p><p><em>3</em><em> Scenario with 100g CO2/kWh in 2030; Deployment Mix with
Lower Grid Carbon Intensity in 2030 (50g CO2/kWh); Deployment Mix with Higher Grid
Carbon Intensity in 2030 (200g CO2/kWh); Scenario showing higher deployment rates
of CCS; Scenario showing higher deployment rates of nuclear generation; Scenario showing
higher deployment rates of offshore wind</em></p>
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