Effect of carbon price floor on levelised cost of gas-fired generation technology in the UK

Abstract

The UK government implements carbon price floor to provide long-term incentive to invest in low-carbon technology, thus, fossil-fuel power plants have to face increasing carbon price. This report addresses the effect of carbon price floor on the levelised cost of gas-fired generation technolo-gy through the levelised cost of electricity (LCOE) approach with the estimation of carbon price floor. Finally, the comparison of levelised cost of electricity for all generation technology in the UK will be shown and discussed.