<p>DECC has published levelised costs estimates of various generation technologies on the DECC website since 2010. The levelised cost of a particular generation technology is the ratio of the total costs of a generic plant to the total amount of electricity expected to be generated over the plant's lifetime (per megawatt hour). Levelised costs include pre-development costs, capex and infrastructure costs, operating costs, connection costs and carbon and fuel costs. Installation costs, along with other costs form part of the capital costs of a project.</p><p>Levelised costs do not include revenues or support payments. The estimates include costs for projects starting now and in the future. All documents relating to electricity generation costs are available on the DECC website:</p><p>https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/energy-generation-cost-projections</p><p>Table 2 of this report shows central estimates of the levelised costs of various technologies for projects starting in 2013 using a 10% discount rate, broken down into components parts. These are copied here for onshore wind and offshore wind Rounds 2 and 3:</p><p><table><thead><tr><td valign="top">Table2: Central levelised cost estimates for projects starting in 2013. 10%discount rate,£/MWh<br /></td></tr><tr><td valign="top" /><td valign="top">Onshore>5MWUK<br /></td><td valign="top">OffshoreR2<br /></td><td valign="top">OffshoreR3<br /></td></tr></thead><tbody><tr><td valign="top">Pre-developmentcosts<br /></td><td valign="top">7<br /></td><td valign="top">4<br /></td><td valign="top">6<br /></td></tr><tr><td valign="top">CapitalCosts<br /></td><td valign="top">70<br /></td><td valign="top">77<br /></td><td valign="top">78<br /></td></tr><tr><td valign="top">FixedO&M<br /></td><td valign="top">18<br /></td><td valign="top">31<br /></td><td valign="top">36<br /></td></tr><tr><td valign="top">VariableO&M<br /></td><td valign="top">5<br /></td><td valign="top">1<br /></td><td valign="top">0<br /></td></tr><tr><td valign="top">FuelCosts<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td></tr><tr><td valign="top">CarbonCosts<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td></tr><tr><td valign="top">CO2Capture and StorageCosts<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td></tr><tr><td valign="top">Decommissioningand WasteFund<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td><td valign="top">0<br /></td></tr><tr><td valign="top">TotalLevelisedCosts<br /></td><td valign="top">101<br /></td><td valign="top">113<br /></td><td valign="top">120<br /></td></tr></tbody></table></p><p>Levelised cost estimates for different types of electricity generation are highly sensitive to the assumptions used for capital costs, fuel and EU ETS allowance prices, operating costs, load factor, discount rate and other drivers and this means that there is significant uncertainty around these estimates.</p><p>It is appropriate to consider a range of cost estimates as pipeline projects show a large range around these central values.</p><p>Table 3 of this report shows a range for the levelised costs of various technologies for projects starting in 20.13 using a 10% discount rate. Those representing high and low capital estimates for onshore wind and offshore wind Rounds 2 and 3 are copied here:</p><p><table><thead><tr><td valign="top">Table3: Sensitivities on levelised cost estimates for projects starting in2013, 10% discount rate,£/MWh<br /></td></tr><tr><td valign="top" /><td valign="top">Onshore>5MWUK<br /></td><td valign="top">OffshoreR2<br /></td><td valign="top">OffshoreR3<br /></td></tr></thead><tbody><tr><td valign="top">Central<br /></td><td valign="top">101<br /></td><td valign="top">113<br /></td><td valign="top">120<br /></td></tr><tr><td valign="top">HighCapex<br /></td><td valign="top">125<br /></td><td valign="top">129<br /></td><td valign="top">139<br /></td></tr><tr><td valign="top">LowCapex<br /></td><td valign="top">80<br /></td><td valign="top">100<br /></td><td valign="top">105<br /></td></tr></tbody></table></p>