Strategic Energy Technologies Information System

European Initiative on Smart Cities

How can the results of the energy cost calculator be interpreted?

The energy cost calculator is a valuable tool to forecast the competitiveness of a given technology within the energy system and its evolution in time. The calculator uses a common methodology for all technologies ensuring that they are compared and treated the same way. The main elements contributing to the cost of production can be easily identified (capital investment, fuel cost, etc.) thus, helping to identify where efforts should be focused.

For instance, in onshore wind farms, the cost of production is expected to decrease from an European average of about 85 €/MWh in 2007 to 70 €/MWh in 2020 due to
decreasing capital expenditure and the improved operation and maintenance expense, which corresponds to the forecast of a rapid development of this technology by 2020.