 supply is built, no matter its size, this fixed capital cost will be incurred. See above for information about the treatment of capital costs.</dd>
<dt>Capacity cost</dt><dd>This is a variable capital cost per unit of diversified peak capacity that is built, reflecting the increased cost of building a bigger plant.</dd>
<dt>Annual cost</dt><dd>This is an annual operating cost per kW diversified peak capacity.</dd>
<dt>Supply cost</dt><dd><p>
This is the price of producing a unit of heat at the supply. This