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Electricity Generation: Costs

Question for Department for Business, Energy and Industrial Strategy

UIN 138372, tabled on 26 April 2018

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the cost per MWh of energy generated by (a) onshore wind, (b) offshore wind, (c) solar PV, (d) open cycle gas, (e) combine cycle gas and (f) coal in 2020.

Answered on

2 May 2018

BEIS’s most recent published assessment of electricity generation costs can be found in the generation costs report (2016)[1] which covers both renewable and non-renewable technologies. We are currently undertaking a review of our evidence on levelised costs of electricity generation.

The relevant section of the 2016 generation cost report is included below. BEIS no longer produces estimates for the levelised cost of unabated coal.


Levelised Cost Estimates for NOAK Projects Commissioning in 2020, Technology-specific Hurdle Rates, £/MWh (2014 prices)

CCGT H Class

OCGT 600MW (500hrs)

Offshore Wind Round 3

Large Scale Solar PV

Onshore Wind >5MW UK

Pre Development Costs

0

5

5

6

4

Construction Costs

7

63

73

52

44

Fixed O&M

2

17

24

9

10

Variable O&M

3

3

3

0

5

Fuel Costs

35

52

0

0

0

Carbon Costs

19

28

0

0

0

Total

66

166

106

67

63

[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/566567/BEIS_Electricity_Generation_Cost_Report.pdf

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