Cheapest source of fossil fuel generation is double the cost of utility-scale solar

AI generated summary

Lazard's annual report on the levelized cost of electricity (LCOE) revealed that onshore wind and utility-scale solar are the most cost-efficient sources of generation, with onshore wind ranking lowest at $27 to $73 per MWh and utility-scale solar following closely at $29 to $92 per MWh. The report highlighted the aggressive cost reduction curve of utility-scale solar, which has fallen by about 83% since 2009. In contrast, coal has an LCOE range of $69 to $169 per MWh, nearly double the average for utility-scale solar.

Lazard also analyzed other technologies, with natural gas peaker plants ranging from $110 to $228 per MWh and nuclear energy having the highest LCOE at an average of $182 per MWh. While LCOE provides insight into cost efficacy, it does not capture the full benefits of renewable energy sources. For instance, wind and solar generation were found to provide significant health benefits, and smaller-scale distributed solar projects have also seen cost reductions. Further considerations beyond LCOE, such as environmental benefits and tax credits, play a role in assessing the overall value of different energy sources.