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CEPA et al 2010 Electricity Distribution MEAV

Category Electricity Distribution
Source CEPA et al 2010
Capital cost £bn(2010)130/77GW 1688£m(2010)/GW

Notes

Study by Cambridge Economic Policy Associates Ltd, Sinclair Knight Merz (SKM) and GL Noble Denton for Ofgem worked out the MEAV (Modern Equivalent Asset Value) for the different grids, based on what they would cost to replace immediately. These are much higher than the Regulated Asset Values, £35bn for transmission and £130bn for distribution. They also work out capex for various scenarios to 2050. These are comparable to 2050 pathways for transmission, but their distribution capex is much higher (£5-£7bn/year in 2050, compared with £1-2bn using the cost above).

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