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Estimating Electricity Costs and Subsidy Requirements in the AD Sector

Explore cost estimates for electricity generation in Anaerobic Digestion (AD) plants based on existing data and industry feedback. Exercise caution due to the sector's diverse models. Results presented in subsidy required per MWh for calculating average generation costs.

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Estimating Electricity Costs and Subsidy Requirements in the AD Sector

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Presentation Transcript

  1. DRAFT AD electricity costs and subsidy requirements

  2. Notes • We have made these broad cost estimates based on existing data and feedback from members • The AD sector is a varied sector encompassing many different models: each plant built to date has followed quite specific models – therefore caution must be exercised in using this data other than for the purpose of calculating the average cost of electricity generation from AD and the subsidy required per MWh • Results are presented in £/ MWh of subsidy required (this can be converted into pence per kWh: for example £50/ MWh is 5 p/ kWh)

  3. Assumptions

  4. Results (16% project IRR pre-tax)

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