Research and analysis

Hurdle rate estimates for electricity sector technologies

Research carried out in 2024, on estimates of hurdle rates for a range of different electricity generation technologies.

• From: Department for Energy Security and Net Zero
• Published: 6 October 2025

Documents

Hurdle rate estimates for electricity sector technologies

PDF, 4.18 MB, 215 pages

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Details

DESNZ commissioned CEPA to undertake this research covering updates to the hurdle rate assumptions for the following technologies:

• renewable generation
• other low carbon generation
• thermal generation (both with and without carbon capture use and storage, or CCUS)
• storage technologies
• interconnectors
• hydrogen electrolysers
• demand response.

The evidence drawn from research reviews in the Generation Costs Series informs:

• cost estimates and technical assumptions within the Generation Costs Reports
• administrative strike prices (ASP) analysis for the Contracts for Difference (CfD) renewables deployment scheme
• power sector modelling

Published 6 October 2025