APPENDIX 2
British Energy derived levelised costs from
data presented by Redpoint[25]
and data pfor the Severn Barrage was taken from IPA Energy.[26]
Similarly this data was used to determine the emissions factor
for each of the technologies based on the efficiency of the power
station and for CCS the Governments assumption that 90% of carbon
dioxide would be captured by CCS technology.
Abatement cost is defined as follows:
The reference solution was considered to be
a Combined Cycle Gas Turbine. This is Governments current approach
to calculating carbon dioxide savings and is used to avoid optimism
bias. By understanding the emissions intensities of the various
low carbon alternatives and the levelised costs it is possible
to calculate the abatement cost.
June 2008
25 Redpoint, Dynamics of GB Electricity Generation
Investment, May 2007 prepared in support of the Governments Energy
White Paper Back
26
Severn Barrage costing exercise, IPA for Renewable Energy Foundation,
March 2008 Back
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