The following tables are taken from Mott Macdonald (2010) and give levelised cost estimates (average generation cost per megawatt-hour) for new build plants in the main large-scale electricity generation technologies in the UK, including onshore wind, offshore wind and nuclear, at current engineering, procurement and construction (EPC) contract prices.
Where technologies are emerging, costs are given on a First-of-a-Kind (FOAK) basis, which includes a cost premium associated with early projects.
|Case 1: 10% discount rate, 2009 project start at today's EPC prices, with mixed FOAK/NOAK|
|Levelised cost||Gas CCGT||Gas CCGT with CCS - FOAK||ASC coal||ASC coal with CCCS - FOAK||Coal IGCC - FOAK|
|Fixed operating costs||3.7||7.7||8.6||18.6||9.7|
|Variable operating costs||2.3||3.6||2.2||4.7||3.4|
|Decomm and waste fund||-||-||-||-||-|
|CO2 transport and storage||4.3||-||9.6||-||9.5|
|Total levelised cost||80.3||112.5||104.5||142.1||134.6|
|Levelised cost||Coal IGCC with CCS - FOAK||Onshore wind||Offshore wind - FOAK||Offshore wind R3 - FOAK||Nuclear PWR FOAK|
|Fixed operating costs||17.7||14.6||36.7||45.8||12.2|
|Variable operating costs||4.6||-||-||-||2.1|
|Decomm and waste fund||-||-||-||2.1|
|CO2 transport and storage||-||-||-|
|Total levelised cost||147.6||93.9||160.9||190.5||99.0|
| Source: |
Mott Macdonald (2010), UK electricity generation costs update, available at:
The following are the levelised costs per MWh for projects started in 2017. They are all given here on the basis of Nth-of-a-Kind (NOAK) meaning it is assumed that all technologies have matured and there has been a cost reduction through learning. For some technologies this is expected to result in a reduction in costs.
|Case 2: 10% discount rate: 2017 project start at projected EPC prices, all NOAK Coal|
|Levelised c ost||Gas -CCGT||Gas - CCGT with CCS||ASC Coal||ASC Coal+CCS||Coal IGCC||Coal - IGCCC with CCS||Onshore Wind||Offshore Wind||Offshore Wind R3||Nuclear - PWR|
|Fixed operating costs||3.7||6.0||8.6||13.8||8.0||12.3||14.6||23.0||30.9||9.1|
|Variable operating costs||2.3||3.6||2.2||3.7||2.7||3.6||-||-||-||1.8|
|Decomm and waste fund||-||-||-||-||-||-||-||-||-||2.1|
|CO2 transport and storage||-||3.5||-||7.6||-||7.5||-||-||-||-|
|Total levelised cost||96.5||102.6||133.2||111.9||136.0||107.1||86.3||112.4||127.9||67.8|
It should be noted that the estimates of levelised costs for different types of electricity generation are highly sensitive to the assumptions used for capital costs, fuel and European Union Emissions Trading Scheme allowance prices, operating costs, load factor, and other drivers. Meaning that there is significant uncertainty around these estimates.
The levelised costs reflect only the cost of power generation and its delivery to the grid. They do not reflect the availability to certain technologies of subsidy such as Renewables Obligation Certificates.