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XVI.a Fossil fuel transfers Costs

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2011-11-30

2011-11-16

2011-04-27

Title: 2050 Fossil fuel transfers costs

Content: This is basically the cost of the national gas grid.

h1 Source data

From Markal3.24Doc

* Residential: 9.57 £M/PJ investment cost.  0.001 £M/PJ variable operating cost. pg 14 code SRNGA Chapter 4 Markal06 cites source for costs; US EPA (2005)
* Industrial: 7.98 £M/PJ investment cost. 0.001 £M/PJ variable operating cost. pg 13 code SINGA Chapter 4 Markal06 cites source for costs; US EPA (2005)

| * Electricity: 7.98 | £M/PJ Investment cost. 0.001 £M/PJ variable operating cost. pg 12 code SENGA cites source for costs: US EPA(2005) |

US EPA (2005) US Regional MARKAL model documentation, Office of Research and Development, US Environmental Protection Agency, www.epa.gov/appcdwww/apb/globalchange

American numbers, so need to x-check with National Grid data.

h1 Approach

# Lump all gas demand together
# Assume the numbers above are per PJ of average flow, and that the scaling that has been done to peak demand remains unchanged.
# Use +/-50% of the residential range.
# Assume a 30 year life

h1 Worries

# Should perhaps work out the size of the gas pipe based on peak demand so benefit from insulation?
# The Markal capital value looks much to high compared with the UK National Grid regulated asset values of £4.5bn for the gas transmission network[http://www.nationalgrid.com/annualreports/2010/delivering-performance/transmission/about-transmission.html] and £7bn for the bit they own (perhaps half)http://www.nationalgrid.com/annualreports/2010/operating-and-financial-review/gas-distribution/about-gas-distribution.html.
# The ratio of capital to operating cost looks wrong, compared with national grid. It may be that a lot of the capital replacement in this calculation is actually operating cost in National Grid figures.

Category: 2050 Pathway Costs



User: Tom Counsell

Picture updated at: 

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Title: XVI.a Fossil fuel transfers Costs

Content: This is essentially the cost of the national gas grid.

h1 Source data

From Markal3.24Doc

* Residential: 9.57 £M/PJ investment cost.  0.001 £M/PJ variable operating cost. pg 14 code SRNGA Chapter 4 Markal06 cites source for costs; US EPA (2005)
* Industrial: 7.98 £M/PJ investment cost. 0.001 £M/PJ variable operating cost. pg 13 code SINGA Chapter 4 Markal06 cites source for costs; US EPA (2005)

| * Electricity: 7.98 | £M/PJ Investment cost. 0.001 £M/PJ variable operating cost. pg 12 code SENGA cites source for costs: US EPA(2005) |

US EPA (2005) US Regional MARKAL model documentation, Office of Research and Development, US Environmental Protection Agency, www.epa.gov/appcdwww/apb/globalchange

These are American numbers. It would be good to cross-check with National Grid data.

h1 Approach

# Lump all gas demand together
# Assume the numbers above are per PJ of average flow, and that the scaling that has been done to peak demand remains unchanged.
# Use +/-50% of the residential range for high and low range, use 35th centile between low and high costs for "Default" figure.
# Assume a 30 year life

h1 Issues

# Should perhaps work out the size of the gas pipe based on peak demand so benefit from insulation?
# The Markal capital value looks much to high compared with the UK National Grid regulated asset values of £4.5bn for the gas transmission network[http://www.nationalgrid.com/annualreports/2010/delivering-performance/transmission/about-transmission.html] and £7bn for the bit they own (perhaps half)http://www.nationalgrid.com/annualreports/2010/operating-and-financial-review/gas-distribution/about-gas-distribution.html.
# The ratio of capital to operating cost looks wrong, compared with national grid. It may be that a lot of the capital replacement in this calculation is actually operating cost in National Grid figures.
# These ofgem documents have gas distribution costs[http://www.ofgem.gov.uk/Networks/GasDistr/otherwork/Documents1/6502-5604Openletter_GasDistributionPriceControl.pdf] [http://www.ofgem.gov.uk/Networks/Trans/Archive/TPCR4/ConsultationDecisionsResponses/Documents1/16342-20061201_TPCR%20Final%20Proposals_in_v71%206%20Final.pdf]

h1 General Comments

Please use this space to make any general comments. Please add your name when commenting.

Category: Sector by sector cost assumptions



User: Joseph Downie

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