Energy Supply

Department for Energy and Climate Change written question – answered on 27th January 2015.

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Photo of Caroline Lucas Caroline Lucas Green, Brighton, Pavilion

To ask the Secretary of State for Energy and Climate Change, what information his Department holds on the extent of additional expenditure that will be incurred by EDF in order to meet its obligations under the capacity market regime.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

EDF plants which gained a three year capacity agreement to carry out refurbishment work have had to declare at pre-qualification for the auction that they will incur a minimum capital expenditure of £125 per kW of de-rated capacity in respect of the refurbishment work, in order to qualify for a three year agreement. This applies in respect of Cottam Power station (1,760MW de-rated capacity) and three units at West Burton B power station (1,322MW de-rated capacity); equating to a minimum capital expenditure of £220m and £165m respectively (at 2012 price levels). The company has provided the department with examples of the type of work to be undertaken in providing reliable capacity over the period. However, details of the anticipated total project spend declared by EDF are held on a confidential basis by National Grid in its role as the delivery body for the Capacity Market and is not data held by the department or publically available.

Existing generation plants taking on one year capacity agreements are not required to demonstrate any additional expenditure. With regard to their other plants successful in the capacity auction, it is a commercial decision for EDF to have bid into the capacity market and commit to those plants being available in the 2018/19 delivery year. The on-going operating and maintenance costs specific to those plants is EDF’s own commercial data.

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