This sixth study in a series on projected costs of generating electricity presents and analyses cost estimates for some 130 power and co-generation (heat and power) plants using coal, gas, nuclear and renewable energy sources. Experts from 19 OECD member countries, 2 international organisations and 3 non-member countries contributed to the study. The levelised lifetime costs presented and analysed were calculated with input data from participating experts and commonly agreed generic assumptions, using a uniform methodology. Key issues related to generation costs are addressed in the report, including methodologies to incorporate risk in cost assessments, impact of carbon emission trading and integration of wind power into electricity grids. A reference in the field, this publication will be of interest to energy policy makers, electricity system analysts and energy economists.

Foreword Acknowledgements List of participating members of the Expert Group Executive summary Part I. Methodology and Data on Levelised Costs for Generating Electricity Chapter 1. Introduction and context Chapter 2. Methodology, conventions and key assumptions -2.1. The notion of levelised costs of electricity (LCOE) -2.2. The EGC spreadsheet model for calculating LCOE -2.3. Methodological conventions and key assumptions for calculating -LCOE with the EGC spreadsheet model -Conclusions Chapter 3 Technology overview -3.1. Presentation of different power technologies -3.2. Technology-by-technology data on electricity generating costs Chapter 4. Country-by-country data on electricity generating costs for different technologies -4.1. Country-by-country data on electricity generating costs (bar graphs) -4.2. Country-by-country data on electricity generating costs (numerical tables) 12 Part II. Sensitivity analyses and boundary isues Chapter 5. Median case Chapter 6. Sensitivity analyses -6.1. Multi-dimensional sensitivity analysis -6.2. Summary results of the sensitivity analyses for different parameters -6.3. Qualitative discussion of different variables affecting the LCOE Chapter 7. System integration aspects of variable renewable power generation -7.1. Introduction -7.2. Variability -7.3. Flexibility -7.4. Costing variable renewable integration -7.5. Power system adequacy Chapter 8. Financing issues -8.1. Social resource cost and private investment cost: the difference is uncertainty -8.2. The role of corporate taxes and the coherence of fiscal and energy policy -8.3. The impact of the financial and economic crisis -8.4. Options for improving investment conditions in the power sector Chapter 9. Levelised costs and the working of actual power markets -9.1. Use and limitations of LCOE -9.2. Power market functioning and electricity pricing in competitive markets -9.3. Qualitative assessment of major risks associated with generation technologies -9.4. Policy considerations Chapter 10 Carbon capture and storage -10.1. Introduction -10.2. Role of CCS in CO2 mitigation -10.3. CO2 capture and storage in power generation -10.4. Demonstration and deployment of CCS Chapter 11. Synthesis report on other studies of the levelised cost of electricity -11.1. Introduction -11.2. Common lessons1 Annex 1. Issues concerning data from non-OECD countries and assumptions for the electricity generating cost calculations -Brazil -China -Russia -South Africa Annex 2. List of abbreviations