The Economics of Renewable Power
Project Introduction
Client: Summerleaze Re-generation Ltd
Duration: 2002
Project Background
In order to meet its Kyoto obligations in
respect of reducing CO2 emissions, a range of subsidies have been
announced by the UK Government in support of renewable energy
generation technologies. Summerleaze, which owns a number of
landfill gas generation projects, commissioned a study to compare
the subsidies being provided to different generation technologies,
and to compare the relative efficiency of achieving environmental
benefits.
Project Scope
Scott Wilson was commissioned to undertake a
study to establish the resource costs (capital, O&M and fuel)
and environmental costs for various generation technologies, and to
establish the subsidies being provided for each. The subsidies
included Renewables Obligation Certificates (ROCs), transmission
subsidies, capacity equivalent subsidies, capital grants, planting
grants and Climate Change Levies (taxation on non-renewables).
Value Adding Project
Achievements
Scott Wilson and its lead partner, CEBR,
developed a dynamic economic model in order to compare current and
future social costs of production and to derive the effective
environmental cost of each technology.
The technologies under consideration included:
- On-shore wind (different locations)
- Off-shore wind
- Biomass
- Landfill gas
- Municipal solid waste (gasification and
incineration)
- Photovoltaics
- Gas-fired CCGT
- Coal-fired steam
