Dave Elliott: Electricity generated from wind and solar is up to 50% cheaper than previously thought, a new UK Department for Business, Energy & Industrial Strategy report suggests. BEIS had already cut its estimates of the levelised cost of wind and solar by 30% in a previous review in 2016, but now, in the new report, even lower figures have emerged: in their estimates for 2025, electricity from onshore wind and solar is nearly half the cost of gas-fired power. In their estimates for projects starting in 2030, 2035 and 2040, while gas and carbon capture and storage costs fall slightly (from £85/MWh in 2025 to £81/MWh in 2040), wind & solar do progressively much better, with large PV falling from £44 in 2025 to £33/MWk by 2040, offshore wind from £57 to £40, beating onshore wind at £44 by 2040. The nuclear cost path is assumed to be as in the 2016 study with costs falling. That’s very debatable: much has changed with nuclear since then, not least continued EPR project cost rises.
Renew Extra 10th Oct 2020 read more »