Table 1: Levelised costs of electricity generation, £/MWh Cost category Gas Offshore Wind Onshore Wind Solar Nuclear 2016 2023 2016 2023 2016 2023 2016 2023 2016 2023 Pre Development Construction Fixed O&M 0723 <1 5 7 69 2 23 237 4 3 6 42 22 49 28 17 10 8 8 10 Variable O&M 3 2 3 1 5 6 0 Fuel Costs 40 43 0 0 0 Carbon Costs 29 60 0 0 0 Decommissioning, Waste 0 0 0 1 0 000 0 0 0 3800000 7 66 11 5 5 0 2 TOTAL 82 114 100 44 61 38 63 41 95 Sources: BEIS (2016) Electricity Generation Costs 2016; DESNZ (2023) Electricity Generation Costs 2023. Notes: Gas-Combined Cycle Gas Turbine H class; Solar-Large Scale Solar; Nuclear-Pressurised Water Reactor; O&M-operating and maintenance costs; Nuclear costs were omitted from the 2023 report What do these 'levelised costs' represent, and how are they calculated?
Table 1: Levelised costs of electricity generation, £/MWh Cost category Gas Offshore Wind Onshore Wind Solar Nuclear 2016 2023 2016 2023 2016 2023 2016 2023 2016 2023 Pre Development Construction Fixed O&M 0723 <1 5 7 69 2 23 237 4 3 6 42 22 49 28 17 10 8 8 10 Variable O&M 3 2 3 1 5 6 0 Fuel Costs 40 43 0 0 0 Carbon Costs 29 60 0 0 0 Decommissioning, Waste 0 0 0 1 0 000 0 0 0 3800000 7 66 11 5 5 0 2 TOTAL 82 114 100 44 61 38 63 41 95 Sources: BEIS (2016) Electricity Generation Costs 2016; DESNZ (2023) Electricity Generation Costs 2023. Notes: Gas-Combined Cycle Gas Turbine H class; Solar-Large Scale Solar; Nuclear-Pressurised Water Reactor; O&M-operating and maintenance costs; Nuclear costs were omitted from the 2023 report What do these 'levelised costs' represent, and how are they calculated?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Table 1: Levelised costs of electricity generation, £/MWh
Cost category
Gas
Offshore Wind
Onshore Wind
Solar
Nuclear
2016 2023
2016 2023
2016 2023 2016
2023 2016 2023
Pre Development
Construction
Fixed O&M
0723
<1
5
7
69
2
23
237
4
3
6
42
22
49
28
17
10
8
8
10
Variable O&M
3
2
3
1
5
6
0
Fuel Costs
40
43
0
0
0
Carbon Costs
29
60
0
0
0
Decommissioning, Waste
0
0
0
1
0
000
0
0
0
3800000
7
66
11
5
5
0
2
TOTAL
82
114
100
44
61
38
63
41
95
Sources: BEIS (2016) Electricity Generation Costs 2016; DESNZ (2023) Electricity Generation Costs 2023.
Notes: Gas-Combined Cycle Gas Turbine H class; Solar-Large Scale Solar; Nuclear-Pressurised Water Reactor;
O&M-operating and maintenance costs; Nuclear costs were omitted from the 2023 report
What do these 'levelised costs' represent, and how are they calculated?
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