The cost of fuels used for energy production - primarily coal, natural gas, and crude oil for oil-fired power plants - is a key driver of electricity generation costs. Commodity prices are influenced by global supply and demand, geopolitical events, transportation costs, regional infrastructure, mining costs, and environmental regulations.

​
Typical Value Ranges

These values are illustrative, and can vary significantly

FuelTypical Value Range (USD, 2023 Constant)Key Factors
Coal$50 - $150 / tonQuality, mining/transportation costs, regional demand, environmental regulations.
Natural Gas$3 - $15 / MMBtuRegional pipeline infrastructure, LNG trade, production costs, geopolitical events, demand from heating/cooling/electricity generation.
Crude Oil$50 - $150 / barrelGlobal supply/demand, OPEC policies, geopolitical events, economic growth, technological advancements, pace of energy transition.
BiomassHighly variable (e.g., $30 - $100 / ton)Type of biomass, local availability, processing, transportation, sustainability certification.

Data sourcing standards for commodity prices are detailed below.

​
Data sourcing standards – commodity prices

Input VariableModel TypeGold Standard (‘Best in Class’)Silver Standard (‘Good’)Bronze Standard (‘Publishable’)
Commodity costs - currentCE & UDData owner data at the commodity exchange or asset level (e.g., mine-mouth coal contracts). Regionally specific import prices.IEA commodity prices (e.g., from WEO) by region, by year.World Bank Commodity Outlook (includes recent past): global value per year per commodity.
Commodity costs - futureCEDetailed, scenario-specific projections from specialized energy agencies or robust internal analysis considering resource depletion, technology, and policy.Projections from reputable public sources (e.g., IEA WEO scenarios).Constant prices from the present, or simple trend extrapolation. (Note: Future price methodologies are continuously refined.)