Project Finance: Practical Case Studies

Drax’s costs were above those for nuclear plants and the newest combined-cycle gas-turbine
(CCGT) plants, but below those of older CCGT plants and other coal-fired plants. The con-
sultant concluded that Drax’s cost structure fell well below the typical range of demand and

DRAX, UNITED KINGDOM

Exhibit 12.6

Wholesale price forecast

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Year ending March

Base

2021 2023 2025 2027 2029 2031

26

24

22

20

18

16

Bank base

Low

Exhibit 12.7

Marginal cost curve

0 10,000

Nuclear

New CCGT

20,000 30,000

Supply MW

40,000 50,000 60,000 70,000

16

16

16

16

16

£/MWh

Old CCGT

Coal

Demand

Oil/OCGT

Coal

Drax (UK coal burnt)