DECC Updates Its Generation Cost Database, But Misses the Cheapest – CHP DH and Micro CHP

The Department of Energy and Climate Change (DECC) had a meeting to discuss the generation costs of energy technologies in November last year. This exercise happens every so often and its objective is to update inputs that might be used in any energy-related modelling work carried out by the department.

The link represent DECC’s initial thinking. It is subject to change and may or may not be published.

They give for example the following costs, all in UK Pounds/kWe:

CCGT – 600 – 690

Coal 1250 – 1500

Onshore wind – 1074

Offshore wind – 1429

The table on the link gives a lot more detail.

Surprisingly, perhaps (or perhaps not given the historical bias), there is no mention of the capital costs, or the running costs of the cheapest means of cutting CO2 and fuel costs – Combined Heat and Power with District Heating  CHPDH for cities, and micro-CHP for suburbs.

If you have any evidence to suggest that any of the assumptions differ from what is attached in the spreadsheet, you may wish to contact Stephen Green, Senior Economist, Energy Strategy, Security and Markets Directorate Department of Energy and Climate Change, at DECC.