Lazard’s Levelized Cost of Energy (“LCOE”) analysis addresses the following topics: Comparative LCOE analysis for various generation technologies on a $/MWh basis, including sensitivities for U.S. federal tax subsidies, fuel prices and costs of capital Illustration of how the LCOE of onshore wind and utility-scale solar compare to the marginal cost of selected conventional generation technologies Historical LCOE comparison of various utility-scale generation technologies Illustration of the historical LCOE declines for wind and utility-scale solar technologies Illustration of how the LCOEs of utility-scale solar and wind compare to those of gas peaking and combined cycle Comparison of capital costs on a $/kW basis for various generation technologies Deconstruction of the LCOE for various generation technologies by capital cost, fixed operations and maintenance expense, variable operations and maintenance expense and fuel cost Overview of the methodology utilized to prepare Lazard’s LCOE analysis Considerations regarding the operating characteristics and applications of various generation technologies An illustrative comparison of the value of carbon abatement of various renewable energy technologies Summary of assumptions utilized in Lazard’s LCOE analysis Summary considerations in respect of Lazard’s approach to evaluating the LCOE of various conventional and renewable energy technologies.
Lazard 8th Nov 2019 read more »
Solar and wind have seen such major cost-efficiency gains within a single decade they are close to outcompeting already operational coal and nuclear plants, according to Lazard. On Thursday, the consultancy released new analysis charting the dramatic slide in solar and wind levelised costs of energy (LCOE) between 2009 and 2019, taking both green energy technologies to a point where they make more financial sense than non-renewable incumbents. Unsubsidised utility-scale solar LCOEs have, the figures show, plummeted between 2009 (US$323-394) and 2019 (US$36-44). For unsubsidised wind, LCOE improvements have been similarly decisive, taking the industry from US$101-169 in 2019 to US$28-54 in 2019. According to Lazard, green energy cost-efficiency gains may have slowed in recent years, particularly for onshore wind. However, they still have made most new-builds cheaper than their coal, gas and nuclear counterparts, the firm noted, using the following figures to underpin the premise:
PV Tech 8th Nov 2019 read more »