The Cost of Electricity generated by different sources measures the cost of generating electricity including initial capital as well as the costs of continuous operation, fuel, and maintenance.Politicians, academics and commentators are often tempted to generalize about the relative costs of electricity from different sources. In practice, there is no such thing as a representative cost of production from a particular technology. Circumstances vary widely from project to project, and so consequently do the economics. Whilst one may choose an arbitrary set of assumptions on which to base calculations of costs for the purposes of comparison, the results will reflect mostly on those assumptions, rather than on the underlying merits of one technology compared to another. Assumptions can be, and frequently are, chosen with a preferred outcome in mind.

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