Electricity Generation

Department for Energy and Climate Change written question – answered on 23rd June 2015.

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Photo of David Davies David Davies Chair, Welsh Affairs Committee, Chair, Welsh Affairs Committee

To ask the Secretary of State for Energy and Climate Change, what the planned capital investment requirements are for the new generating capacity required to replace closing electricity plants; and what estimate she has made of the cost per Mwh of electricity generated by such plants in comparison with current electricity market prices.

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change

Large capital investment is planned for the GB electricity sector not only in the context of ageing plants, but upgrading network infrastructure, meeting decarbonisation objectives and maintaining security of supply. Between 2010 and 2013, we estimate over £45 billion private sector investment in electricity generation and networks. We have estimated further capital investment requirements to be up to £100bn between 2014 and 2020. We have not estimated the proportion of this investment that relates directly to replacing ageing plants.

For DECC’s most recent published estimates of the costs per MWh for a range of generation technologies, please refer to the levelised cost estimates published in the Electricity Generation Costs (December 2013) report which can be found at the link below.


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