Tuesday, November 8, 2011

KPMG Report shows Lowest Cost Low-Carbon Energy Mix as 70% Nuclear

KPMG Global Energy Institute's “New nuclear – an economic perspective” concludes that in a market not required to generate low carbon, “the cost of electricity would be approximately £70/MWh”

A “high nuclear” scenario (approximately 70%), supported by abated gas and coal (i.e. through the use of CCS) would increase this cost to £75/MWh.

A third scenario, in which the percentage of nuclear power is reduced to 32%, replacing the difference with alternative low-carbon sources, of which 22% is off-shore wind, increases this price to £100/MWh.

However, recognising that CCS may not be viable and replacing this component with alternative sources, principally off-shore wind (40%), increases the electricity cost further to £110/MWh.
Finally, in a scenario where CCS is considered a viable alternative and is used to reduce the nuclear component to zero (off-shore wind remaining at 40%), the electricity cost rises to £120/MWh.

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