Value chain · CLM-0178
In plain terms
The UK government's own summary of this study repeats the same headline figures as the underlying technical report: about 5 pence per kWh, a development cost of around 16 billion pounds, and an estimated 1.80 pounds of wider economic benefit for every pound spent.
The claim as recorded
The public-facing BEIS-commissioned summary "De-risking the pathway to Net Zero" restates the underlying Frazer-Nash model's results as: LCOE GBP50/MWh at a 20% hurdle rate for a system "commissioned in 2040"; development cost NPV (including optimism bias) of GBP16.3 billion; total FOAK programme cost to 2040 of GBP17.3 billion (GBP16.3bn development plus GBP1.0bn operating expenditure) in present-value terms; and a benefit-cost ratio of 1.8, i.e. "for every GBP1 of public funds spent to develop the first of a kind system, a further GBP1.80 is supported in the UK economy."
Scope and limits
This document does not itself add new analysis; its value here is as confirmation of BEIS's commissioning and public framing of the same Frazer-Nash figures, and it is useful to cite when a plain-language, government-attributed statement of the headline numbers is wanted rather than the technical annexes.
What it assumes
Same as the underlying SRC-021 model (CLM-0170, CLM-0173, CLM-0175) - this is not an independent estimate.
Where it comes from
"The estimated value of LCOE is GBP50/MWh, with an investment hurdle rate of 20%, and assuming the system is commissioned in 2040." "The Net Present Value (NPV) of overall development costs, including optimism bias, is estimated at GBP16.3 billion." "The total programme cost up to 2040... is GBP17.3 billion in present value terms, comprising the GBP16.3 billion development cost and GBP1.0 billion operating expenditure." "the ratio is calculated to be 1.8, thus for every GBP1 of public funds spent... a further GBP1.80 is supported." (p.20-22).
Basis: GBP, 2018 prices except where noted
Related records
- Answers question
- QST-037 not published in this release
Cite this
energyaperture.com/c/clm-0178
CLM-0178, Energy Aperture, as of 2021.
Connected records
Other published records linked to this one. A list, not a judgement.