Energy: Costs

Department for Energy and Climate Change written question – answered on 7th January 2016.

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Photo of Tom Blenkinsop Tom Blenkinsop Labour, Middlesbrough South and East Cleveland

To ask the Secretary of State for Energy and Climate Change, what steps her Department is taking to take account of the whole system costs of different energy technologies when formulating future government policy on delivering renewable support at least cost to consumers.

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

DECC recognises the importance of considering the whole system impacts (both costs and benefits) of different electricity technologies when formulating future government policy, since it is a crucial element in delivering secure, clean and affordable energy to consumers.

In order to continue to improve its evidence base in this area and inform future policy developments, DECC has commissioned a project on the Whole System Impacts of Electricity Generation Technologies on the electricity system. This project will improve DECC’s understanding of what these system costs are (for example the impact of electricity technologies on wider system balancing actions and networks requirements), as well as improve DECC’s modelling capability to quantify these system costs and their dynamics.

Once this project is completed, DECC will be able to better quantify these system costs to inform policy decisions. Any future policy development, such as future renewable support, will be informed by the improved evidence base developed through this project.

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