DECC has published levelised costs estimates of various generation technologies on the DECC website since 2010. The levelised cost of a particular generation technology is the ratio of the total costs (including construction and operating costs) of a generic plant to the total amount of electricity expected to be generated over the plant's lifetime (per megawatt hour). They do not include revenues or support payments. These are available on the following website:
DECC's most recently published figures for current and future levelised costs are available in the following report Electricity Generation Costs (December 2013):
Table 1 as follows is taken from this report, and shows a range of levelised cost estimates for projects starting pre-development in 2013 and 2019 for selected technologies, using a 10% discount rate. Please see the report for more information, including cost estimates for new coal equipped with carbon capture and storage. Please note that we have not published levelised cost estimates for oil plants.
|Table 1: Levelised cost estimates for selected electricity generation technologies, 10% discount rate, sensitivities around high/low capital costs and fuel prices|
|Projects starting pre-development in 2013||Projects starting pre-development in 2019|
|Onshore Wind >5 MW UK||80-125||79-123|
|Offshore R2 Wind||107-139||101-132|
|Offshore R3 Wind||113-150||104-141|
|Coal-ASC with oxy combustion CCS (FOAK)||-||80-143|
|Coal IGCC with CCS (FOAK)||-||96-183|
|CCGT with post combustion CCS (FOAK)||-||64-128|
Levelised cost estimates for different types of electricity generation are highly sensitive to the assumptions used for capital costs, fuel and EU ETS allowance prices, operating costs, load factor, discount rate and other drivers and this means that there is significant uncertainty around these estimates.