The report states: "The IoM have estimated the cost for MUA at 5.4p/kWh, however Arup have not seen the detail of this analysis and cannot verify the assumptions or results." It adds that this figure "relates to the marginal cost – i.e. the cost of generating an extra unit of power – and therefore is lower than the average cost of generation, which would include fixed costs such as capital recovery." The document discusses marginal generation cost levels for the Island’s existing system but does not cite a 1.5p/kWh figure.

The presentation describes a range of future electricity system designs for the Isle of Man and compares their costs, including capital expenditure and operating costs. One slide notes that one option is the "Cheapest baseload option for island in terms of CAPEX and O&M costs" and refers to the ability to export electricity, but the document does not state any marginal cost figure such as 1.5 pence per kilowatt-hour excluding capital costs. Cost information is presented qualitatively or as high-level scenario comparisons rather than as a specific marginal generation cost number.

This technical and economic appraisal for onshore wind generation on the Isle of Man provides cost breakdowns for wind projects, including operating and maintenance costs per MWh and levelised costs of energy (LCOE). It distinguishes between capital costs and operating costs, noting that fuel cost for wind is effectively zero and that marginal operating costs are low relative to capital cost recovery. The report, however, presents costs predominantly as levelised costs in £/MWh, not as a marginal cost as low as 1.5 pence per kWh.

The UK Government’s 2023 report on electricity generation costs provides levelised costs and operating costs for multiple technologies. For gas CCGT commissioned in 2025, levelised costs (including capital, fuel and carbon) are reported in the range of around £60–80/MWh (6–8p/kWh), with fuel cost being a major component. For renewables such as onshore wind and solar PV, levelised costs are also predominantly capital-driven but still significantly above 1.5p/kWh when expressed as total cost per kWh. The document shows no mainstream UK technology with total cost approaching 1.5p/kWh; such figures would only refer to narrow marginal operating or fuel components excluding capital and some fixed costs.

The Isle of Man Government’s Net Zero site explains that “Energy supply is the largest emissions category for the Isle of Man and accounts for 44% of total emissions (2023 Inventory).” It outlines work on onshore renewables, hydro, and potential interconnection, and notes that costs of generation and grid upgrades are key factors in planning. The page does not provide any estimate of marginal electricity generation costs as low as 1.5 pence per kilowatt-hour, nor does it describe a specific plan to reach that figure excluding capital costs.

The appendix sets out resource potential, technical options and cost considerations for onshore wind and solar generation on the Isle of Man as part of the net zero strategy. It states that "The Isle of Man has the capacity to generate more energy from onshore wind than is currently demanded" and recommends clarifying the government’s approach to onshore wind, but it does not provide a specific marginal cost of generation of 1.5 pence/kWh or any comparable numeric pence-per-kWh operating cost excluding capital costs. Costs are discussed in terms of general economic attractiveness and comparative LCOE-type metrics rather than a very low marginal cost such as 1.5 pence/kWh.

The document provides an overview of the Isle of Man’s energy strategy, including plans for net-zero emissions, increased renewable generation, and potential export of electricity. It sets out the vision "for the Island's energy future" and notes the intention to take advantage of low‑carbon technologies but does not quantify any marginal cost of generation at 1.5 pence/kWh, nor does it present an explicit estimate of operating cost per kilowatt-hour excluding capital expenditure. Cost references are high-level strategic statements rather than detailed marginal cost figures.

This international study provides detailed estimates of levelised costs of electricity (LCOE) and, where relevant, fuel and operating costs for various generation technologies across many countries. For nuclear and fossil-fuel plants, fuel and variable operating costs are usually several tens of USD per megawatt-hour, i.e. several pence per kWh, with total LCOE values for most technologies reported as "within the range of 25–45 USD/MWh in most countries", which corresponds to roughly 2–4.5 US cents/kWh or about 1.5–3.5 pence/kWh at historic exchange rates when including capital and fixed costs. The report, however, does not refer to the Isle of Man and does not present a specific planned system with a marginal cost of 1.5 pence/kWh; its figures are generic cost benchmarks rather than a proposal for the island.

The IEA’s global survey of generation costs shows that levelised costs for new generation capacity across nuclear, fossil fuels, and renewables typically fall in the range of tens of USD/MWh, corresponding to several cents or pence per kWh. While technologies such as wind and solar have very low fuel and marginal operating costs, their total cost per unit of electricity is still well above 1.5 pence per kWh once capital and fixed O&M are included. The report indicates that marginal cost figures substantially below 2 pence per kWh would only apply to certain zero-fuel technologies when capital costs are explicitly excluded.

The European Commission report analyses levelised costs of energy (LCOE) and disaggregates components such as capital expenditure (CAPEX), fixed and variable operating expenditure (OPEX), and fuel costs for a range of technologies across the EU. It notes that typical CAPEX levels for some technologies can be around "€3,000/kW" and that operating and fuel costs add additional amounts per MWh, resulting in LCOE values that are often well above 1.5 pence/kWh when converted to pence per kWh. The report does not cover any specific Isle of Man energy plan, and it does not state a marginal cost of 1.5 pence/kWh excluding capital costs for any system design.

The Fraunhofer ISE study reports levelised costs of electricity (LCOE) for various renewable technologies in Germany, including PV and wind, through 2045. It finds that starting from 2024, the LCOE of all PV systems without battery storage will be below 15 eurocents/kWh and that hydrogen power plants are expected to have average LCOE between 30.5 and 49.8 eurocents/kWh, decreasing only slightly by 2045. These values, which include capital costs, are far higher than 1.5 pence/kWh, and the report does not discuss any Isle of Man plan or a marginal cost figure of 1.5 pence per kWh excluding capital expenditure.

This white paper from Isle of Man business and civil society groups discusses proposals to accelerate the island’s green transition, with sections on electricity generation, interconnection, and pricing. The paper makes recommendations to government on improving competitiveness and reducing energy costs, but in the sections on electricity pricing and generation economics it does not quote a marginal generation cost as low as 1.5 pence/kWh excluding capital costs; instead, it refers to broader concepts such as "affordable" energy and the need to attract investment. No numerical claim is presented that the proposed transition plan would deliver a marginal cost of approximately 1.5p per kilowatt-hour.

The OECD/IEA report on projected costs of generating electricity provides levelised and operating cost estimates for a wide range of technologies across OECD countries. Typical operating-plus-fuel costs (short-run marginal costs) for gas, coal, nuclear and renewables are often several pence (or equivalent in local currency) per kilowatt-hour. While some high-resource renewables can have very low short-run marginal costs (near zero fuel cost), the report does not identify any case explicitly characterised as 1.5 pence per kilowatt-hour marginal cost in an Isle of Man context.

Reporting on the Isle of Man’s net-zero strategy, Isle of Man Today notes that the government is considering increased onshore and offshore wind, solar, and possibly additional interconnection to the UK to decarbonise electricity. The article mentions that the transition is expected to require significant capital investment and that costs to consumers will depend on how those investments are financed and recovered, but it does not mention any plan projecting marginal generation costs as low as 1.5p per kilowatt-hour.

The article explains that the cost of electricity is often expressed as levelized cost of electricity (LCOE), which "includes the initial capital, discount rate, as well as the costs of continuous operation, fuel, and maintenance". It notes that while renewables like wind and solar have "very low marginal costs" because they do not require fuel, the total cost per kWh including capital typically ranges from a few to several cents per kWh depending on technology and location. The page does not mention any Isle of Man–specific plan targeting a marginal cost of 1.5 pence per kWh.

Economic and engineering literature on power systems routinely distinguishes between marginal operating cost (fuel plus variable O&M) and levelised cost of electricity (which also includes capital and fixed O&M). Natural-gas plants often have marginal costs of several pence or cents per kWh, since fuel dominates, whereas wind and solar have near-zero fuel cost and low variable O&M, so their marginal costs can approach fractions of a cent per kWh. However, the full levelised cost including capital for these technologies is typically several cents/pence per kWh in most OECD settings.