Select Committee on Trade and Industry Minutes of Evidence


Memorandum by the Renewable Power Association

INTRODUCTION

  The Renewable Power Association (RPA) is a newly established trade association representing producers of renewable energy. Its membership includes renewable electricity generators, fuel suppliers and providers of heat, along with their equipment and service providers.

  The RPA has member companies involved in wind energy, solar, biogas, energy-from-waste, landfill gas, biomass, wave, tidal, marine current and sewage gas industries, together with respected names from the legal, accounting, energy trading and academic communities.

  The RPA works on the large number of generic issues that affect renewable energy producers, irrespective of the technology involved. These include the New Electricity Trading Arrangements, the Renewables Obligation, renewables integration issues, embedded generation, NFFO/SRO contract issues, emissions savings, planning, the Climate Change Levy, etc. Security of supply and the contribution that renewable energy can play falls directly within the remit of the Renewable Power Association.

  This evidence is divided into two parts. The first part summaries the general status of renewable energy in the UK, and the second deals with the questions listed in Press Notice No. 3 describing the enquiry, namely:

    —  Given the imminent dependence of the UK on energy imports, how can the UK maintain a secure energy supply? What mix of fuels would maximise security?

    —  Is there a conflict between achieving security of supply and environmental policy? What is the role for renewables, and Combined Heat and Power schemes?

    —  What scope is there for further energy conservation?

    —  What impact would any changes have on industrial competitiveness and on efforts to tackle fuel poverty?

    —  Is any change of Government policy necessary? How could/should Government influence commercial decisions in order to achieve a secure and diverse supply of energy?

PART 1

OVERVIEW OF STATUS OF RENEWABLE ENERGY IN UK

Policy drivers for renewable energy.

  Since 1990 renewable energy has been encouraged by successive governments, primarily for its environmental benefits but also for energy security issues.

  The Conservative government introduced the NFFO in 1990. The policy was to stimulate the development of new and renewable energy sources wherever they have prospects of being economically attractive and environmentally acceptable in order to contribute to:

    —  diverse, secure and sustainable energy supplies.

    —  the reduction in the emission of pollutants and

    —  the encouragement of internationally competitive industries.

  The Labour government maintained most of the momentum of the NFFO by having a fifth contract round (NFFO5), whilst undergoing a review of renewable energy policy. This was to be followed by NFFO5b for offshore wind and biomass, both of which were not included in NFFO5. Regrettably this did not happen.

  Labour's renewable energy policy for has five key aims:

    —  to assist the UK to meet national and international targets for the reduction of emissions including greenhouse gasses;

    —  to help provide secure, diverse, sustainable and competitive energy supplies;

    —  to stimulate the development of new technologies necessary to provide the basis for continuing growth or the contribution from renewables into the longer term;

    —  to assist the UK renewables industry to become competitive in home and export markets and, in doing so, provide employment;

    —  to make a contribution to rural development (Preliminary consultation document, DTI, Oct 2000)

  Thus it can be seen that renewables' contribution to security of supply has been a consistent and key driver for the promotion of renewable energy.

Renewable contribution to energy

  There is much emphasis on renewable electricity generation, although heat production is significant, particularly the domestic and industrial consumption of wood. According to the UK Digest of Energy Statistics almost 3,000 million tonnes of oil equivalent was produced from renewable sources during 2000, 500 mtoe of which was wood. This data is summarised in Table 1, to be found at the end of this response.

  Government policy has focused almost exclusively on promoting renewable electricity generation, and the NFFO has been the main driver for the increasing contribution of renewables to the UK energy mix.

  Details of NFFO orders, along with their Scottish and Northern Ireland counterparts are given in Tables 2-9 of this evidence.

  It should be noted that the NFFO (SRO & Ni-NFFO) resulted in a dramatic fall in prices over a wide range of technologies. However there has been a particularly poor commissioning success rate for some technologies, notably wind energy and MSW.

  Of the 3,600 MW dnc of capacity for which contracts were awarded, only 930 had been commissioned as of the end of March 2001. Difficulty in obtaining planning permission has been a major barrier to renewables deployment. More information on this subject can be found in the enclosed paper<mr100>.

  Although no further NFFO orders will be made, there is still a large amount of NFFO and SRO capacity left to commission, and it is anticipated that NFFO projects will contribute a significant amount towards the Renewables Obligation targets.

  The Government intends to introduce secondary legislation, which will allow NFFO (but not SRO) projects to relocate without losing the benefit of the contract. This is expected imminently and this is hoped to boost the prospects for the remaining uncommissioned capacity.

  As NFFO contracts insulate renewable projects from the impact of the New Electricity Trading Arrangements (NETA), this will be an attractive route for those projects where NFFO price is competitive with developing a project under the Renewables Obligation. It should be noted that it is not a simple comparison between prices under the RO and NFFO. The longer contract term and relative ease of financing projects with NFFO contracts (compared to RO contracts) both have significant value in addition to the protection from NETA.

The potential for renewables

  Quantifying the RE resource is particularly difficult, due to the large number of factors that can be taken into account. The theoretical technical potential of renewables is huge, but it is reduced when constraints on land use, cost and network integration are taken into account. Market penetration estimates attempt to take these constraints into account, but there can be disagreement over the assumptions made.

  The resource-cost data used in the March 1999 consultation paper<mr17> and R122 (the supporting annexes on different technologies) suggest that 198.75 TWh of renewables would be available at 5p/kWh at an 8 per cent discount rate. Over three quarters of this is wind energy.

* Not printed.<mo17> New and Renewable Energy: prospects for the 21st Century. DTI March 1999.

  33.6 TWh are required under the RO to meet 10 per cent of sales from licensed electricity suppliers, and 38 TWh for 10 per cent of UK electricity supplies (the UK's target under the EU Renewables Directive). This equates to some 5500-6,200 MW dnc of capacity (at 70 per cent load factor) respectively.

  At a very basic level, the bids made into NFFO gives an idea of the size of the potential resource—even when set against declining prices. It can be seen that with each successive order from NFFO3 onwards, the amount of capacity bid in increased. Also it should be noted that energy crops and offshore wind energy were excluded from entering NFFO5.

Table 10
OrderBids submitted MW dnc Contracts awarded (MW dnc)

NFFO3
2464 (-670 of which wind) 653.9
NFFO42556 (-875 wind) 843.1
NFFO52579 (-660 wind) 1177


  The first round of the offshore wind energy consenting process has yielded a total of over 1600 MW of projects, and developers are anxious to see further rounds initiated as soon as possible.

  The above discussion indicates that the renewable resources are large and the amount of resource is not a constraint on the contribution that renewables can play in the UK energy mix.

INTERMITTENCY ISSUES

  Contrary to popular opinion, the development of the intermittent renewable energy sources, such as wind and wave poses no threat to secure and stable supplies for the foreseeable future.

  Coping with intermittent generation is not a technical problem for the system. Up to 20 per cent of capacity can come from intermittent sources without posing any problem to the National Grid Company in its operation of the system. Above this level a small additional amount of thermal plant may have to be kept part-loaded.

  NETA has made intermittent generation a commercial problem, to an extent not merited by the underlying economics of the electricity supply system. To put this another way, renewables' commercial difficulties under NETA have no technical basis.

BARRIERS TO DEPLOYMENT

NETA

  NETA is a significant problem for renewable electricity generation. Ofgem's report of how small generators fared under the first two months of NETA concluded that prices for renewable energy had fallen (Ofgem suggests by around 25 per cent, but the RPA maintains it is nearer 40 per cent when the Climate Change Levy exemption is taken into account). This extra measure to help renewables, worth up to £4.30/MWh, was overlooked in the Ofgem report with the result that it was incorporated in basic energy price. Therefore the price comparison with the previous year was not comparing like with like.

  Renewable plants are small and suffer disproportionately because of their size. They do not have the resources to engage in the complex NETA market, and to date the rules have acted as a barrier to entry to consolidators.

  The reasoning for renewables development is primarily environmental and the impact on competitive markets is largely secondary. Even if it were feasible it would not make environmental sense to operate renewable plant to balance contract positions.

  Several commentators are now questioning the efficacy of NETA in the wider context and the extent to which NETA can be credited with reducing electricity prices is questioned<mr18><mr19>.

  It has already been observed that NETA has resulted in more plant being run on a part-load. This tendency has come about because the pricing rules systematically over-favours flexibility, and generators are choosing to keep additional flexibility to increase their output to avoid imbalances. Power UK estimates part loading has risen from 1GW pre NETA to around 5GW (Power UK 88, June 2001 p 16) Part loading is less efficient and this trend has therefore resulted in higher carbon dioxide emissions.

  There are two approaches to remedying the situation; supporting renewables through some other means—ie increasing the subsidy, or by tackling the root cause of the problem and modifying NETA. The RPA favours the latter approach.

  There are a number of potential solutions to the problems faced by renewable generators, and if the political will is there to remedy the problem, the details can be worked out.

  In conclusion, renewables costs have been artificially inflated by NETA. This is particularly worrying in the context of the wide ranging energy review running at present, as it plays into the hands of those who argue that nuclear power is a cheaper option for carbon saving.

PLANNING

  Planning has already been touched upon as a key barrier to the deployment of renewables. The background paper<mr101> examines the planning picture with respect to NFFO projects and clearly illustrates that securing planning permission has been a grave hindrance to achieving government targets for renewable energy.

<mo101> Not printed.<mo18>NETA—Is the Glass Half Empty of Half Full? Nigel Cornwall. UK Powerfocus. September 2001.<mo19>NETA—are there new risks? Power UK 91.

  The House of Lords report on renewable energy suggested that "National policy for renewable energy needs to be a clear and integral part of the planning guidelines. Moreover, planning inspectors should be more clearly held accountable for decisions by reference to those expanded guidelines"<mr119>. The report also noted the value of regional targets for the implementation of renewable energy.

  Just over three years later, the regional assessment studies are now nearing completion. The DTI has commissioned a further study to bring the result together, to look at the differing assumptions made across the studies and to examine the results in the context of the Government's 10 per cent target for renewable energy. However it is not within the remit of that further study to make recommendations with respect to planning policy.

  The real test of whether the "stakeholder buy-in" approach used for the regional targets has been effective will be seeing how the targets feed through to local planning authority decisions and how quickly.

  Recent debate within the renewable energy community has centred on either updating Planning Policy Guidance note 22 (PPG22) or a more radical approach such as that used for minerals aggregate planning. Alternatively these two approaches could be pursued simultaneously.

  PPG22 on renewable energy was issued in 1993, but effectively dates from 1991, when the first draft was issued for consultation. Few amendments were made from the original draft. Government has indicated that it will review PPG22 as soon as practicable<mr20>. The RPA would be happy to draft or to co-ordinate the drafting of this important document, as again, this is a cross-technology issue.

  Although very positive, the original PPG22 was not always adhered to by planning committees and in itself did not create a planning climate conducive to meeting the renewable energy targets of the time. Nor would an updated and equally positive PPG22 be a panacea. Planning inspectors often find it difficult to apply checks and balances and resolve potentially conflicting guidance. Reconciling national need with local considerations has proved to be an obstacle. Government advice on balancing landscape and renewable energy planning guidance would be helpful.

  It has been suggested that a renewable energy planning regime analogous to mineral local plans is a more robust and guaranteed approach. Renewable energy shares much in common with minerals aggregate in the planning context, in that targets are set at a national level and broadly speaking the resource must be developed where it occurs.

  There was no clear consensus over which option (PPG22 revision or local energy planning) was most desirable. Although latter was thought by some to stand a greater chance of delivering the targets, there were concerns over the length of time the process would take. The RPA would like to see these issues debated more fully and the scope for a simultaneous approach considered.

  Also helpful would be a requirement that planning authorities should ensure that a certain percentage (perhaps initially 10 per cent) of new buildings should incorporate renewable energy generation within a defined proportion of the building envelope.

  The RPA's members are deeply concerned about the planning criteria and find the suggestions that developers should place more emphasis on consultation with the local community unhelpful, as the industry demonstrably spends considerable time and effort on this. More support from the Government, whose targets the industry is trying to deliver, would be helpful. This could take the form of public information campaigns.

<mo119>Para. 12. Electricity from Renewables. Volume 1. Select Committee on the European Communities. House of Lords. Session 1998-99. 12th Report. HMSO. 29 June 1999.<mo20> Ms Keeble in response to a parliamentary question from Mr Damian Green. Hansard, 27 June 2001: Column: 103W.

EMBEDDED GENERATION

  In January 2001 the joint DTI/Ofgem Working Group on Embedded Generation reported its findings. Its two main recommendations were:

    (a)  that Ofgem should review the structure of regulatory incentives on Distribution Network operators (DNOs) in light of their new statutory duty to facilitate competition, and

    (b)  to form a Committee to oversee the implementation the Working Groups numerous detailed recommendations.

  The DTI has invited nominations for representatives from the various relevant sectors for this Embedded Generation Co-ordinating Committee. The RPA nominated a renewable generator representative and a domestic generator representative. The RPA's monthly meetings would provide a forum whereby these representatives can report on the work of the committee and solicit views from the membership when required.

  Ofgem published a preliminary consultation document in September, the focus of which was to stimulate discussion on possible short-term changes which could be implemented before the next distribution price control to be introduced in April 2005. Proposals for consideration within this timeframe include a move from deep to shallow(er) connection charging, introduction of payment of generator distribution use of system changes, improved information provision and metering arrangements.

  The adoption of renewable generation by the domestic sector would be significantly enhanced if the connection process were made more straightforward. If a type testing approach were taken to domestic scale generation equipment to ensure that it passes safety standards, and the installers of such equipment were certified (eg in the manner of CORGI accreditation for gas engineers) then this would do away with the need for individual connection agreements. This approach was recommended by the Embedded Generation Working Group.

  Although keen to participate in this extremely important work, the renewable generator community is severely hampered by lack of resources to apply to this task, in comparison with those available to DNOs.

PART 2

GIVEN THE IMMINENT DEPENDENCE OF THE UK ON ENERGY IMPORTS, HOW CAN THE UK MAINTAIN A SECURE ENERGY SUPPLY? WHAT MIX OF FUELS WOULD MAXIMISE SECURITY?

  Renewable energy sources offer the most secure of all energy sources, inasmuch as the "fuel supplies" are indigenous. With the exception of the landfill gas, which will slowly reduce in the longer term as less biodegradable material is landfilled, these supplies are inexhaustible.

  Any fuels that are imported or transported will be subject to such potential supply crises, even in the context of sufficient resource being available. The majority of renewable energy sources deliver themselves to the power plant, and no amount of human intervention could stop them! This, coupled with their diverse nature, reduces two elements of energy security risk.

  Energy security is not just an issue of fuel distribution and geo-politics. Problems with infrastructure and distribution can occur within the UK. Having road tankers deliver fuel to service stations is not a secure energy supply, as was demonstrated in September 2000 when the whole country was brought to standstill by a small group of protestors. Renewable (or fossil) natural gas can be delivered to service stations using the existing national Natural Gas grid in a much more secure manner. It is also a much more environmentally friendly distribution system.

  The recent events in the US have demonstrated the potential risk that terrorism can play. Large scale nuclear power plants pose a particular security of supply risk in this context. Nuclear power plants have the added dimension of potential for radiation release as a consequence of such attacks. In contrast, the characteristics of renewable plant; their small size, geographically dispersed nature, the fact that they are embedded within the distribution network and have minimal infrastructure to act as a possible target make them particularly attractive.

  As covered earlier, the UK has substantial resources of most of the renewable energy types, and mostly at prices which are on a par with, or only slightly higher than, the generation costs from gas, given the recent price rises. There is also much scope for increasing renewables' contribution to heat production and transport fuels.

  The renewable energy sources also offer stable electricity prices as they are insulated from fuel price changes. As these sources are capital-intensive, price levels are largely fixed at the completion of construction phase. Most renewable sources are small-scale and construction times are short, so cost and time overruns are rare.

  Beyond noting that the contribution of renewable energy should be as high as possible, speculating on components of the fuel mix is an issue outside the remit of the RPA.

IS THERE A CONFLICT BETWEEN ACHIEVING SECURITY OF SUPPLY AND ENVIRONMENTAL POLICY? WHAT IS THE ROLE FOR RENEWABLES AND COMBINED HEAT AND POWER SCHEMES?

  Renewables have zero or low greenhouse gas emissions, as well as being the most secure forms of energy supply. Therefore, far from causing a conflict between environmental objectives and security of energy supply, renewable energy is complimentary to both.

  The example of Denmark shows that can be done with progressive and long-term policies to encourage the development of renewable energy sources. The Danish Government has an Energy Plan that extends to 2030, and covers all sectors. Greenhouse gas emissions are steadily being reduced as a consequence. The Plan envisages 30 per cent of primary energy—and 50 per cent of electricity—coming from renewables by 2030 and the changes in the fuel mix up to that time have been projected. This gives all sectors of the renewable industry a long-term basis on which to plan.

WHAT SCOPE IS THERE FOR FURTHER ENERGY CONSERVATION?

  Although this is beyond the remit of the RPA, it is noted that there are further and substantial opportunities for energy conservation measures across the board—in industry, commerce and the domestic sector.

  However, trends today to show that energy consumption is increasing, even though the stock of energy consuming equipment is becoming increasingly energy efficient. The growth rate in total electricity supply between 1996 and 2000 averaged around 1.2 per cent between 1980 and 2000 it averaged 1.7 per cent. The National Grid Company anticipates growth averaging 1.4 per cent per annum over the next seven years<mr219>. The policy of striving for lower prices to the consumer only encourages this.

WHAT IMPACT WILL ANY CHANGES HAVE ON INDUSTRIAL COMPETITIVENESS AND ON EFFORTS TO TACKLE FUEL POVERTY?

  The incremental costs of developing renewable energy sources are mostly very small. It should be noted that the new Renewables Obligation gives a false picture here, as the Government has assumed that the price of all renewables will tend towards the "buyout" price.

  It should be noted that the whole rationale for development of renewables rests on the need to avoid the much higher costs likely to be incurred from the "External costs" of the fossil fuels, particularly global warming.

  Efforts to tackle fuel poverty should continue and there would appear to be scope for absorbing the extra costs of renewables by cutting back the overall profit margin within the electricity supply industry.

<mo219>  Table 2.1—ACS Peak Demand and Annual Electricity Requirements Forecasts. National Grid Company Seven Year Statement, 2001.

IS ANY CHANGE OF GOVERNMENT POLICY NECESSARY? HOW COULD/SHOULD GOVERNMENT INFLUENCE COMMERCIAL DECISIONS IN ORDER TO BE ACHIEVED A SECURE AND DIVERSE SUPPLY OF ENERGY?

  The final responses to the Government's consultation on the Renewables Obligation were accepted just over two weeks ago. The Association made a series of suggestions as to how the policy could be improved, and a copy of the RPA's response to the consultation is enclosed with this evidence<mr102>.

  In summary the RPA makes the following points in its response:

  1.  The Government should undertake a formal review (within two to three years of the Order being made) to evaluate the progress towards the targets and reconsider if necessary the sufficiency of the buy-out price, the sources of renewable energy supported by the obligation and any reasons why certain technologies may not be forthcoming.

  2.  Delays in implementing RO should be avoided.

  3.  The Order should be drafted to avoid the potential for renewable energy sites to be sterilised.

  4.  Autogeneration and licence exempt supply from renewable sources should be eligible for ROCs.

  5.  The two per cent allowance for fossil contamination of biomass should be raised to 10 per cent (by weight).

  6.  "Good quality" energy from waste projects should be eligible for ROCs.

  7.  The definitions of gasification and pyrolysis should remain broad in order to avoid stifling innovation in these developing technologies.

  8.  Fossil fuel use in a minimal fossil use generating station should not be defined.

  9.  The RO targets should be raised to cover additional ROCs likely to come from refurbished hydro schemes.

  10.  Refurbished hydro stations that were above 20 MW prior to refurbishment, but reduced during refurbishment to below 20 MW should not be eligible for ROCs.

  11.  Micro-hydro schemes at industrial sites should be encouraged.

  12.  All micro-hydro projects should be eligible for ROCs irrespective of the history of their ownership.

  13.  Ensure that demand for RE continues to grow beyond 2010. (Retaining a limit of 10.4 per cent post 2011 may reduce the value of ROCs and curtail debt terms.)

  14.  Reinforce the intention not to remove any qualifying RE sources from the RO, whilst keeping open option to add new sources.

  15.  Confirm the intention that any amendment to the RO will enhance the UK RE industry and that nothing will be done that adversely affects the credit quality of PPAs (ie as per NFPA assurances on NFFO contracts).

<mo102> Not printed.

  16.  Member States' obligations should be similar enough not to cause distortions to the UK market.

  17.  Integrate the current diverse sources of capital grant funding into a coherent programme aimed at subsidising capital intensive projects.

  Further suggestions

  Introduce Rural Development Certificates as a way of recognising that biomass contributes significantly to the rural economy as well as producing environmental benefits.

  Ensure that successful projects are not reliant on a number of financing sources, all of which need to be in place before projects come to fruition. The RPA welcomes the news that New Opportunities Funds will be made available together with DTI grant awards for offshore wind and biomass. It is preferred that such sources of funds are consolidated at Government level.

OTHER MAJOR AREAS OF GOVERNMENT POLICY

  The key barriers identified earlier need to be addressed.

  The most pressing short-term need is for Government to encourage or promote make a small amendment to the New Electricity Trading Arrangements to exempt renewable generators from the unfair penalties they currently suffer in the balancing market. These penalties are not cost reflective—the intermittent renewable sources incur no extra costs to the system operator.

  Also in the short term, the Government needs to take a firm grip on planning, where delays and anomalies still abound.

  The detailed recommendations of the working group on embedded generation should be implemented. Government support to the industry may be necessary in order to enable it to devote sufficient resources to this key work.

Table 1
Electricity generation (mtoe) Heat production (mtoe)Total
Active solar heating10.510.5
Onshore wind81.381.3
Small scale hydro20.5 20.5
Large scale hydro418.6 418.6
Landfill gas717.613.6 731.2
Sewage sludge digestion120.2 41.1161.3
Wood (domestic and industrial)502.8502.8
Straw71.7 71.7
MSW combustion559.8 76.4636.2
Other313.9 (eg tyres, farm waste, poultry litter etc) 48 (tyres, clinical waste, industrial waste and farm waste) 361.9
Total biofuels1,667.7 735.51,759.5
Geothermal aquifers 0.80.8
Total2,232 7642,996.9

  Source: Table 7.6 UK DUKES. Renewable Sources used to generate electricity and heat. Data for 2000.

DETAILS OF NFFO AND SRO RENEWABLES ORDERS

  The following tables list the technologies supported, the capacity contracted and prices in pence/kilowatt-hour in money of the day.

Table 2

NFFO1 CONTRACTS (1990)
TechnologyProjects Capacity (MW dnc)Lowest bid price Highest bid price contractedCommissioned projects (MW dnc)
Wind912.2 5.5710.007 (11.6)
Hydro2611.9 3.857.5021 (10)
LFG2535.5 3.606.4010 (30.8)
MSW440.6 5.066.004 (40.6)
Other (waste)445.5 4.436.004 (45.5)
SG76.5 4.406.006 (6)
Total75152.1 5.5 overall average price61 (144.5)


  Contracts for NFFO1 and NFFO2 expire at the end of December 1998. Projects were paid their bid price.

Table 3

NFFO2 CONTRACTS (1991)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageBand strike price Commissioned projects (MW dnc)
Wind4984.4 6.399.9711.00 24(52.5)
Hydro1210.9 3.405.066.00 10(10.4)
LFG2848.5 3.964.755.70 26(46.4)
MSW10271.5 5.506.206.60 2(31.5)
Other (waste)430.2 4.005.425.90 1(12.5)
SG1926.9 4.805.165.90 18(19.8)
Total122472.2 overall average price7.20 81(172.4)


  Contracts for NFFO2 end on 31 December 1998. Projects were paid the "strike price"—the highest contracted price in their technology band.

Table 4

NFFO3 CONTRACTS (1994)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageHighest bid price Commissioned projects (MW dnc)
Wind>1.6 MW dnc31145.99 3.984.434.8   All wind
Wind<1.6 MW dnc 2419.74.4 5.25.919 (46.3)
Hydro1541.48 4.254.464.85 8(11.7)
LGF4282.07 3.293.764.00 42(82.1)
MSW20241.87 3.483.894.00 6(77.4)
Energy crops
(gasification)
3 198.48.6 8.7All E. crops
Energy crops
(residual)
6 103.84.95.0 5.23(77.5)
Other
Total141653.9 Weighted average price 4.3 p/kWh 78(295.0)


  Contracts are for a 15-year peroid. Projects are paid their bid price (index linked). This is also the basis of NFFO4 and 5 contracts.

Table 5

NFFO4 CONTRACTS (1997)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageHighest bid price Commissioned projects (MW dnc)
Wind>0.768 MW dnc`48 330.43.113.53 3.80All wind
Wind<0.768 MW dnc 1710.44.09 4.574.954 (4.5)
Hydro3113.3 3.804.254.40 7(2.1)
LGF70173.7 2.803.013.20 51(135.7)
MSW6126 2.662.752.80 All MSW
MSW with CHP10115.3 2.793.233.40 2(15)
Biomass gasification
or pyrolysis
767.45.49 5.515.79 0
AD of agricultural
wastes
6 6.65.105.20 5.170
Total195843.1 Weighted average price 3.46p/kWh 64
(157.3)


Table 6

NFFO5 CONTRACTS (1998)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageHighest bid price contracted Commissioned projects (MW dnc)
MSW with CHP7 70 2.342.632.9
MSW22 416 2.392.432.49
Hydro229 3.854.084.35
LFG141314 2.592.732.9 35(71.6)
Wind>0.995 MW dnc33 3402.432.88 3.1All wind
Wind<0.995 MW dnc 36 283.4 4.184.62 (1.7)
Total2611,177 weighted average price 2.71 p/kWh 37(73.3)


Table 7

SRO1 CONTRACTS (1994)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageHighest bid price contracted Commissioned projects (MW dnc)
Wind1245.6 3.794.173.99 7(25.1)
Hydro1517.3 3.424.153.94 6(4)
LGF23.8 4.084.104.09 2(3.8)
Biomass19.8 5.085.085.08 1(9.8)
Total3076.5 Weighted average price 4.31 p/kWh 16(42.7)


Table 8

SRO2 CONTRACTS (1997)
TechnologyProjects Capacity (MW dnc)Lowest bid price AverageHighest bid price contracted Commissioned projects (MW dnc)
Wind743.6 2.742.862.94
Hydro912.3 3.453.643.76 1(0.8)
Waste956.1 2.73.043.20 3
1
(6.7) lfg (83.3)MSW
Biomass12 6.886.886.88
Total26114 Weighted average price 3.11 p/kWh 5(15.8)


Table 9

SRO3 CONTRACTS (1999)
SRO3Projects Capacity (MW dnc)Highest bid price contracted Commissioned projects (MW dnc)
Biomass112.9 not disclosed
Hydro53.9 3.59
MSW & LGF1648.21 3.141(3.9)
Wave32 7 1(0.2
Wind1163.43 2.19All wind
Wind small1712.26 3.384(10.8)
Total53142.7 6(14.9)



 
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