Afrigather A brand new report by Lazard compares the levelized price of vitality (LCOE) for numerous technology applied sciences on a $/MWh foundation. It reveals that utility-scale photo voltaic and onshore wind LCOE elevated for the primary time in 2023, at $24/MWh to $96/MWh for photo voltaic and $24/MWh to $75 MWh for wind. However, the 2 renewable sources are nonetheless the financial frontrunners when in comparison with nuclear, fuel, and coal.
Photo voltaic and wind are nonetheless probably the most inexpensive sources of electrical energy, however their LCOE has elevated for the primary time in 2023, in response to a brand new report by US-based monetary agency Lazard.
The report provides a comparative LCOE evaluation for numerous technology applied sciences on a $/MWh foundation, with exceptions for US federal tax subsidies, gas costs, carbon pricing, and the price of capital. The report additionally features a cost-of-firming-intermittency evaluation for the primary time. Not like in earlier years, the LCOE for utility-scale photo voltaic omits thin-film expertise and solely focuses on crystalline silicon.
In a base comparability, with out contemplating subsidies, gas costs, or carbon pricing, utility-scale photo voltaic and wind have the bottom LCOE of all sources. Utility-scale photo voltaic PV is available in wherever from $24/MWh to $96/MWh, whereas onshore wind registers the bottom doable LCOE over the shortest vary, from $24/MWh to $75/MWh. Offshore wind’s LCOE ranges between $72/MWh and $140/MWh.
For comparability, beneath the identical standards, fuel peaking is available in at $115/MWh to $221/MWh, nuclear is $141/MWh to $221/MWh, coal is $68/MWh to $166/MWh, and fuel mixed cycle is $39/MWh to $ 101/MWh, in response to Lazard.
Unsubsidized residential rooftop PV has an LCOE between $117/MWh and $282/MWh, whereas the LCOE of neighborhood and industrial and industrial (C&I) photo voltaic ranges between $49/MWh and $185/MWh. When factoring in federal tax subsidies beneath the US Inflation Discount Act, together with home contest provisions, rooftop PV is available in at $74/MWh to $229/MWh, and neighborhood/C&I rooftop PV at $32/MWh to $155/MWh.
For the primary time within the historical past of Lazard’s evaluation, the typical LCOE for each utility-scale PV and onshore wind elevated. Inflation, provide chain challenges, and the worldwide vitality disaster all had a task to play in placing a cease to photo voltaic’s “race to the underside.” However, Lazard notes that “the LCOE of the best-in-class onshore wind and utility-scale photo voltaic has declined on the low-end of our price vary, the explanations for which might catalyze ongoing consolidation throughout the sector.”
For utility-scale PV, the LCOE vary in 2021 was very small, at $30/MWh to $41/MWh. In 2023, it ranged from $24/MWh to $96/MWh, thereby rising the typical LCOE.
Lazard estimates that between 2016 and 2023, utility-scale PV’s LCOE elevated by 3%, calculated as the typical share enhance of the high-end and low-end of the LCOE vary. Between 2009 and 2023, nonetheless, photo voltaic’s LCOE decreased by 84% in response to the identical metric.
The brand new report additionally consists of an evaluation of the levelized price of storage and hydrogen, which pv journal will cowl in separate articles.
This content material is protected by copyright and is probably not reused. If you wish to cooperate with us and wish to reuse a few of our content material, please contact: editors@pv-magazine.com.
