Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if she will review the Levelised Cost of Electricity to take account of the (a) full cost of energy and (b) energy return on energy invested.

The Department will soon be publishing updated analysis comparing the cost of electricity generation across renewable and selected non-renewable technologies, reflecting the latest evidence. This will be published by the end of March 2024. The Levelised Cost of Electricity (LCOE) is a widely used metric which provides a simple way to compare costs across technologies. There are alternative metrics, such as the Energy Return on Investment but all metrics have limitations. Some additional factors than for LCOEs, such as timing and location of generation can be considered by enhanced LCOE analysis. Full system costs are evaluated by the Department’s power modelling.