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Alfa Energy Group
Energy and Sustainability Consultancy Alfa Energy Group
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We are an international energy and sustainability consultancy that develops relevant strategies for clients in all industries and keeps them running. We started in 1995 with the simple goal of...

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  • Sep 15, 2020 12:21 pm GMTSep 15, 2020 12:22 pm GMT
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Government estimates power from wind and solar may be 50% cheaper than thought

According to a new report on electricity generation costs published by the BEIS, electricity generated from wind and solar may be up to 50% cheaper than previously thought.

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Source: netzerocarbon.com

According to a new report on electricity generation costs published by the Department for Business, Energy and Industrial Strategy, electricity generated from wind and solar may be up to 50% cheaper than previously thought.

  • report
  • renewables
  • solar-power
  • wind-power

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Bob Meinetz's picture
Bob Meinetz on Sep 15, 2020

John, is the "Department for Business, Energy and Industrial Strategy" a government agency or a marketing firm?

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Matt Chester's picture
Matt Chester on Sep 15, 2020

The Department for Business, Energy and Industrial Strategy (BEIS)[3] is a department of the government of the United Kingdom, which was created by Theresa May on 14 July 2016 following her appointment as Prime Minister, through a merger between the Department for Business, Innovation and Skills (BIS) and Department of Energy and Climate Change (DECC).

https://en.wikipedia.org/wiki/Department_for_Business,_Energy_and_Industrial_Strategy 

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Matt Chester's picture
Matt Chester on Sep 15, 2020

The report sets out estimates of the ‘levelised cost of electricity’ (LCOE) for various forms of power generation, from wind, solar and gas CCS to unabated gas-fired power stations. A ‘levelised cost’ is the average cost of the lifetime of the plant per MWh of electricity generated. This reflects the cost of building, operating and decommissioning a generic plant for each technology.   

LCOE has its fair share of criticisms as a single point metric, and surely to get a true look at what a grid with X more solar/wind on it replacing gas should factor in other externalities-- need for storage, need for demand response, cost to pay for standby baseload, etc. But if the pure LCOE generation costs are that much lower, that leaves a lot of room to play with to accelerate even after factoring in the other costs

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