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Delivered Electricity Costs

It is sometimes claimed that CHP, and other low-carbon decentralised energy solutions, will result in an increase in energy costs for consumers. The impact of CHP market growth on delivered electricity costs was therefore assessed. Figure 15 compares delivered electricity costs to the end consumer for the two scenarios. The overall cost is again divided into the different constituents, including T&D system investments.

Overall, there is a small reduction in delivered costs to end consumers in both time periods, 1.1% in 2015 and 0.3% in 2030. Thus it appears that increased use of CHP may not lead to increased electricity prices.