Electricity generation costs by fuel
Deasy sought unit-generation costs for different fuels and hydroelectric and pumped-storage stations. The Minister said biomass experiments were too preliminary for a reliable estimate; wind and wave costs had not been requested. He cautioned that the coal figure concerned a small station using native coal, while imported coal could be substantially cheaper than oil. Costs included fuel, operation, maintenance, local administration and depreciation, but excluded unallocated interest, amortisation and generation overheads. The Minister said comparisons could guide planning if the figures used consistent parameters and exclusions.
asked the Minister for Energy the cost of producing a unit of electricity in (a) oil, (b) coal, (c) turf and (d) gas generated power stations; the estimated cost in biomass generated stations; and the cost in (i) hydro-electric stations and (ii) the Turlough Hill type operation.
Comment on this
The information requested by the Deputy, as furnished to me by the ESB, is as follows:
Cost in pence of producing a unit of electricity from:
*The use of biomass as fuel is at the experimental stages at present and any figures which might be quoted would be unreliable.
Comment on this
Has the Minister any estimate for the cost of biomass for generating electricity? Has he any estimate for electricity generated by wind or waves?
Comment on this
The ESB are not sufficiently far advanced in their experiments to provide an estimate in regard to biomass. Information on the other matter was not sought in the question.
Comment on this
In view of the fact that coal is at the top of the list which the Minister has given is it not rather peculiar that the ESB are concentrating on coal in their generating stations nowadays?
Comment on this
The Deputy should realise that the figure quoted here is the figure for one small coal station which uses native coal. The economics will be enormously different when large quantities of higher grade imported coal are used.
Comment on this
I have not, but I believe it would be substantially below the figure for oil generated power stations which is 2.048p.
Comment on this
The figures the Minister has given are very interesting. Do they relate to the superficial cost, having been made a present of the plant, of generating units of electricity or is there in those figures an element reflecting the capital cost of installing plant of different kinds?
Comment on this
The costs included are fuel, operation and maintenance, plus other local administration charges and depreciation. Costs which are not specifically allocated over the generating stations are interest, amortisation and generation overhead charges.
Comment on this
The interest and amortisation charges are really only a fraction of what the installation of the plant has cost. There would be very large differences in the cost of different kinds of generating installations.
Comment on this
I am trying to discover if those figures are useful in order to assist us to plan the installation of future generating units. Is it possible to say, in regard to planning a range of new units, that we will get electricity from this kind of unit at roughly half or a fraction of the price of another or is the difference in the cost of installing the plant so large that it really makes those figures irrelevant or not so reliable? I am trying to discover from the Minister if it would be possible to plan the installation of new plant on the basis of those figures or if a whole new set of figures will have to be taken into account related to the crude cost and the difference in the crude cost between a nuclear plant on one side——