Asked by: Baroness Worthington (Crossbench - Life peer)
Question
To ask Her Majesty’s Government what will be the effect on the carbon intensity of electricity generated measured in gCO2/kwh of the fitting of emissions abatement technology at West Burton, Cottam and Eggborough coal-fired power stations.
Answered by Baroness Verma
A recent report by independent energy consultants Parsons Brinckerhoff commissioned by this Department estimates that fitting emissions abatement technology needed to comply with the forthcoming industrial emissions Directive would result in a reduction in plant efficiency in the range 0.01 to 0.13 percentage points:
https://www.gov.uk/government/publications/coal-and-gas-assumptions
The impact on the carbon intensity of electricity generated by a plant, measured in gCO2/kWh, as a result of fitting emissions abatement technology can be expected to be of a scale that reflects this estimated range of efficiency loss.
A ‘reference plant’ was used for the purposes of the report and exact changes to efficiency and emissions intensity may vary across the UK’s coal-fired power stations due to their differing designs.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question
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.
Answered by Baroness Verma
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:
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.
Ofgem has the power to investigate any company bidding into the auction should they consider this necessary.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question
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.
Answered by Baroness Verma
In total 67.3GW of capacity has prequalified to participate in the first Capacity Market auction in December this year.
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.
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.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question
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.
Answered by Baroness Verma
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.
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.