Lazard says ‘inflection point’ reached making new renewables cheaper than existing coal 9th November 2018 BY: TERENCE CREAMER
A new US study comparing the costs of energy from various generation technologies indicates that an “inflection point” has been reached where, in some cases, it is more cost effective to build and operate new renewable-energy projects than to maintain existing conventional generation plants.
The finding is contained in Lazard’s latest ‘Levelized Cost of Energy (LCOE) Analysis’, which the financial advisory firm compiles yearly. The report has been released together with the company’s latest ‘Levelized Cost of Storage Analysis’, which points to significant cost declines across most use cases and technologies. ADVERTISEMENT
The analysis shows that the cost of generating electricity from utility-scale solar photovoltaic (PV) and onshore wind continued to decline last year, with solar PV decreasing by 13% and onshore wind by almost 7%. Decreases since 2009 are more dramatic, with the mean unsubsidised LCOE for solar PV falling 88% and onshore wind decreasing by 69% over the nine years surveyed by Lazard in the report.