Building new power plants is now becoming more expensive, after years of steadily falling costs, concludes the IHS CERA Power Capital Costs Indexes (PCCI) for North America and Europe.
Rising steel and copper costs are helped drive the rebound – which amounts to a 2 per cent rise in the company’s propriety index of costs for building coal, gas, solar, wind and nuclear power plants in both regions.
On the index – which is based on a figure of 100 for 2000 – the current score is now 219. In other words, a portfolio of power plants that cost $100bn in 2000 would now cost $219bn.
The latest increase in costs signals the first significant upward momentum since the long decline in costs began, said Candida Scott, IHS Senior Director of Cost and Technology.
“The latest rise in costs, while measured, represents a substantial shift in momentum,” she said.
“We have now moved past a bottoming-out and costs have begun their slow march upward.”
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