To ask the Secretary of State for Business, Energy and Industrial Strategy, what progress his Department has made on its analysis of whole system costs for intermittent renewable energy sources.
17 November 2016
The Department for Business, Energy and Industrial Strategy recognises the importance of considering the whole system impacts (both costs and benefits) of different electricity technologies when formulating future Government policy: this is a crucial element in delivering secure, clean and affordable energy to consumers. The Department’s social cost benefit analysis, which plays a key role in policy making, accounts for wider system costs, including network and balancing costs.
To deepen the Department’s understanding of the impacts of individual electricity generation technologies, Frontier Economics were commissioned to develop a comprehensive framework to define whole system impacts and their components and drivers, which can be applied to conventional, low-carbon and renewable large- and small-scale technologies. The resulting methodology report and its peer reviews will be published in due course.