Hydro, Wind, and Marine Resources

for Renewable Energies

LEVELIZED COST OF ELECTRICITY

[email protected]
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1
LCOE renewable energies

https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019
Hydro Power

https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019
Wind Onshore

https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019
Wind Offshore

https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019
Comparison with fossil fuel power units
LAZARD’S LEVELIZED COST OF ENERGY ANALYSIS—VERSION 14.0

Levelized Cost of Energy Comparison—Unsubsidized Analysis

Selected renewable energy generation technologies are cost-competitive with conventional generation technologies under certain circumstances

Solar PV–Rooftop Residential $150 $227

Solar PV–Rooftop C&I $74 $179

Solar PV–Community $63 $94

Solar PV–Crystalline Utility Scale (1) $31 $42

Renewable Energy
Solar PV–Thin Film Utility Scale (1) $29 $38

Solar Thermal Tower with Storage $126 $156

Geothermal $59 $101

Wind $26 $54 $86(2)

Gas Peaking (3) $151 $198

Nuclear (4) $29(5) $129 $198

Conventional
Coal (6) $41(5) $65 $159

Gas Combined Cycle (3) $28(5) $44 $73 $88(7) $127(8)

$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275
Levelized Cost ($/MWh)
Source: Lazard estimates.
Note: Here and throughout this presentation, unless otherwise indicated, the analysis assumes 60% debt at 8% interest rate and 40% equity at 12% cost. Please see page titled “Levelized Cost of Energy Comparison—Sensitivity to Cost of Capital” for cost of
capital sensitivities. These results are not intended to represent any particular geography. Please see page titled “Solar PV versus Gas Peaking and Wind versus CCGT—Global Markets” for regional sensitivities to selected technologies.
(1) Unless otherwise indicated herein, the low case represents a single-axis tracking system and the high case represents a fixed-tilt system.
(2) Represents the estimated implied midpoint of the LCOE of offshore wind, assuming a capital cost range of approximately $2,600 – $3,675/kW.
(3) The fuel cost assumption for Lazard’s global, unsubsidized analysis for gas-fired generation resources is $3.45/MMBTU.
(4) Unless otherwise indicated, the analysis herein does not reflect decommissioning costs, ongoing maintenance-related capital expenditures or the potential economic impacts of federal loan guarantees or other subsidies.
(5) Represents the midpoint of the marginal cost of operating fully depreciated gas combined cycle, coal and nuclear facilities, inclusive of decommissioning costs for nuclear facilities. Analysis assumes that the salvage value for a decommissioned gas
combined cycle or coal asset is equivalent to its decommissioning and site restoration costs. Inputs are derived from a benchmark of operating gas combined cycle, coal and nuclear assets across the U.S. Capacity factors, fuel, variable and fixed
operating expenses are based on upper- and lower-quartile estimates derived from Lazard’s research. Please see page titled “Levelized Cost of Energy Comparison—Renewable Energy versus Marginal Cost of Selected Existing Conventional
Generation” for additional details.
(6) High end incorporates 90% carbon capture and storage. Does not include cost of transportation and storage.
(7) Represents the LCOE of the observed high case gas combined cycle inputs using a 20% blend of “Blue” hydrogen, (i.e., hydrogen produced from a steam-methane reformer, using natural gas as a feedstock, and sequestering the resulting CO2 in a
nearby saline aquifer). No plant modifications are assumed beyond a 2% adjustment to the plant’s heat rate. The corresponding fuel cost is $5.20/MMBTU. 2
Copyright 2020 Lazard (8) Represents the LCOE of the observed high case gas combined cycle inputs using a 20% blend of “Green” hydrogen, (i.e., hydrogen produced from an electrolyzer powered by a mix of wind and solar generation and stored in a nearby salt cavern). No
plant modifications are assumed beyond a 2% adjustment to the plant’s heat rate. The corresponding fuel cost is $10.05/MMBTU.
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.