The turbine (GT), heat recovery steam system (HRSG),

The cost of a power generation plant is divided along the full-lifetime of the facility, which includes: capital expenditure costs (CAPEX), operating expenditure cost (COPEX) and expected generation data (UK Department for Business, 2016)



We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

The segments with the biggest impact into the overall CAPEX is the equipment and the EPC (Engineering, procurement and construction).

Equipment: Gas turbine (GT), heat recovery steam system (HRSG), steam turbine, condenser and cooling system. By searching with different providers such as Siemens and GE Electrics, the space needed for the equipment is minimal, compared with coal plants, besides the main equipment GT and HRSG are sell in full integrated packages, which leads to a minimal civil works.



Fixed cost: As mention by MacDonald the fixed costs are moderate due to minimal workers needed (Macdonald, 2010), even that maintenance of gas turbines represents a concern, that’s why supplier selection becomes essential, as equipment with less downtime will result on more available time for production, during the plant operation.

Variable cost: As expected natural gas prices trends will have a huge impact on the operating cost. Nevertheless, tendencies indicate that natural gas prices are willing to decrease over the next years.


In order to calculate the cost of the CCGT plant, is necessary to look at levelised cost of generating electricity. As defined by the UK Department of International Development(DFID) “levelised cost of electricity tracks and compare the financial cost competitiveness of different power generation technologies, taking into account the full project life-cycle from development to financing to construction and then operation” (UK Department for Business, 2016).


The next evaluation is based on the costs given by Mott MacDonald in the article “UK Electricity Generation Costs Update”, assuming that the project will start during 2017 and based on prices of 2011.