Department for Business, Energy and Industrial Strategy written question – answered on 19th November 2018
Judith Cummins Labour, Bradford South
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that low-carbon energy is produced at the lowest possible cost.
Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)
Through our Contracts for Difference scheme, which is our main mechanism for supporting new renewable electricity generation projects, contracts are awarded in a series of competitive auctions, with the lowest price bids being successful – which drives efficiency and cost reduction. The scheme has been a success, delivering substantial new investment and helping deliver significant reductions in the costs of some renewable technologies.
In addition, the UK is likely to need significant new nuclear capacity in order to meet our carbon reduction commitments. We have always been clear that new nuclear must provide value for money. To that end, the Government’s Nuclear Sector Deal has set out a target for a 30 per cent reduction in the cost of new build projects by 2030. The Government is also considering direct investment in the Wylfa project alongside other parties and is reviewing the viability of a regulated asset base model for future projects.