A number of general trends can be identified within the power generation market. These include the steady increase in the use of renewable sources for generation and the potential for much greater use of natural gas. A further trend that seems set to continue over the medium term is the inexorable rise in the cost of electricity, while the future of nuclear power looks increasingly uncertain.
Highlights from report
- Combined cycle gas turbine plants with carbon capture and storage (CCS) are the cheapest of the conventional base-load technologies, with an estimated cost of £900–1,000/kW.
- Geothermal power in the UK is relatively expensive at £4,700/kW, whch is partly a reflection of the fact that deep drilling and rock fracturing are required to exploit the resource.
- Offshore wind has an estimated levelized cost of $167/MWh. Solar pV costs fell from $5,879/kW in 2010 to $4,474/kW in 2011.
This report is available to Current London Business School students, faculty and staff from Datamonitor 360 which can be found on the A-Z list of library databases within Portal
Photo from Creative Commons: Flickr: www.TheEnvironmentalBlog.org