The IEA/NEA Projected Costs of Generating Electricity - 2020

Nuclear Power Industry

Prepared in cooperation of the International Energy Agency (IEA) and OECD Nuclear Energy Agency, this ninth edition of Projected Costs of Generating Electricity focuses on the cost of electricity generation from a wide set of technologies in a large range of countries. Inevitably, regional, national and local conditions have their importance. Nevertheless, the increasing competitiveness of low-carbon technologies for electricity generation remains the key insight of this report. This holds both for variable renewables such as wind and solar PV, as well as flexible low-carbon generators such as hydro and nuclear energy (including LTO).

Even at a modest carbon price of USD 30 per tonne of CO₂, unmitigated coal is no longer competitive. Gas-fired electricity generation remains competitive in some markets, especially OECD North America, due to very low gas prices. CCUS would require considerably higher carbon prices than those seen in most markets today to become competitive.

The report also considers for the first time in some depth the costs of the system effects of different generating options, most notably the variability of wind and solar PV. Such system analysis will become increasingly important as their penetration in the electricity systems of OECD and non-OECD countries increases. Logically, the costs of storage are also included for the first time.

Lastly, this report provides a perspective on the coming electrification of sectors such as transport, hydrogen or heat production, which will integrate electricity generation with the wider economy in new and important ways. The chances are that these latter two aspects will play an even greater role in future editions of the Projected Costs of Generating Electricity.