The article quotes £147/MWh for CCGTs. These look to come from the Electricity Generation Costs 2025 [0] released on the same day as the CfD results. However there is no £147/MWh in Annex A [1]. There is a £145/MWh for CCGT delivered in 2030, but the way this was arrived at is interesting.
a) A load factor of 30% (which seems pretty low for a CCGT), that is actually ~28% (per Annex A [1] "Technical Costs and Assumptions" sheet);
b) fuel efficiency is set to be 54%, which is far lower than BAT CCGT of around 64%, which affects fuel and CO2 emissions costs;
c) the analysis missed out capacity market payments that one gets for having dispatchable power stations;
d) the analysis presumes £41/MWh of carbon costs.
The key drivers of the price are load factor (so amortised construction costs), conversion efficiency (fuel costs and carbon costs) and carbon costs themselves. These make up 90% of the LCOE.
a) A load factor of 30% (which seems pretty low for a CCGT), that is actually ~28% (per Annex A [1] "Technical Costs and Assumptions" sheet);
b) fuel efficiency is set to be 54%, which is far lower than BAT CCGT of around 64%, which affects fuel and CO2 emissions costs;
c) the analysis missed out capacity market payments that one gets for having dispatchable power stations;
d) the analysis presumes £41/MWh of carbon costs.
The key drivers of the price are load factor (so amortised construction costs), conversion efficiency (fuel costs and carbon costs) and carbon costs themselves. These make up 90% of the LCOE.
[0] https://www.gov.uk/government/publications/electricity-gener... [1] https://assets.publishing.service.gov.uk/media/6967b0c806fab...