IESIS

A multidisciplinary engineering institution based in Scotland

 

Levelised cost estimates for electricity generation

 

Link to Covering Paper:   A Probabilistic Approach to Levelised Cost for Various Types of Electricity Generation

Link to Spreadsheet

These estimates of levelised cost have been produced by Colin Gibson, formerly Power Network Director with the National Grid. In this role he had responsibility for the power system of England & Wales, with departments covering development of the system, commercial arrangements, asset management and system operation.  His experience in power systems, and in both thermal and pumped storage power stations, make him one of the the most knowledgeable people in the UK in relation to electricity generation issues.

Levelised cost is a predictive model and therefore careful assessment of its usefuleness needs to be considered.  In particular the model needs to be validated i.e. there needs to be an assessment of whether the model can satisfy its requirements.  In this case the requirement is to provide information to assess the costs to electricity consumer over a investment period.  The validation analysis provided as an appendix to the Covering Paper comes to the conclusion that the results are likely to be indicative of the relative costs rather than provide accurate predictions of actual cost.

It is hoped that the information made available here will stimulate the commissioning of a corresponding study based on the more accurate total system cost approach.  Resources to carry out such a study are not available to IESIS.

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