News & insights
Date: January 2026 | Client: DESNZ | Sector: Energy | Energy infrastructure | Gas | Expertise: Public policy & strategy
Cost estimates for unabated gas-fired power projects published
The Department for Energy Security and Net Zero (DESNZ) commissioned CEPA and GHD to produce an updated comprehensive assessment of the costs of: (i) developing new unabated gas-fired power projects in GB, and (ii) extending the operating life of existing gas plants. The work was developed in the context of perceived changes in costs since 2022 and in the context of the continuing role that unabated gas generation may play as the GB power system decarbonises.
Our joint report provides an updated granular view of capital and operating costs for a range of unabated gas-fired technologies, including:
- Combined Cycle Gas Turbines (CCGT)
- CCGT configured for combined heat and power (CHP)
- Open Cycle Gas Turbines (OCGT)
- Reciprocating engines
The study brings together bottom-up cost modelling using the latest available data and direct engagement with industry. CEPA led a series of discussions with industry stakeholders to validate our modelling and to identify additional cost drivers that can vary by project, such as site-specific factors. This engagement also explored the wider market conditions influencing costs, including the extent to which recent increases reflect domestic pressures versus disruptions in international supply chains.
The findings informed, and were published alongside, the Electricity Generation Costs 2025 report, which sets out levelised costs across a range of electricity generation technologies.
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