By Paul Homewood
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According to government figures, the levelised cost of CCGT is £114/MWh, which includes a Carbon Cost of £60/MWh. But the latter has nothing to do with pollution costs, or even the Social Cost of Carbon.
The government explains:
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Their link takes us to this statement:
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It’s a bit of a word salad. But what it essentially means is that the “carbon price” must be big enough to make fossil fuels uncompetitive with renewables.
As emissions reductions become more difficult and costly, so the carbon price must rise to compensate.
In short, the carbon price has nothing to do with the actual cost or otherwise of carbon dioxide, and therefore should not regarded as part of the cost of gas-fired generation.
