Lazard’s Levelized Cost of Energy (“LCOE”) analysis addresses the following topics:
• Comparative LCOE analysis for various generation technologies on a $/MWh basis, including sensitivities for U.S. federal tax subsidies, fuel prices,
carbon pricing and costs of capital,
• Illustration of how the LCOE of onshore wind and utility-scale solar compare to the marginal cost of selected conventional generation technologies,
• Historical LCOE comparison of various utility-scale generation technologies,
• Illustration of the historical LCOE declines for wind and utility-scale solar technologies,
• Illustration of how the LCOEs of utility-scale solar and wind compare to those of gas peaking and combined cycle,
• Comparison of capital costs on a $/kW basis for various generation technologies,
• Deconstruction of the LCOE for various generation technologies by capital cost, fixed operations and maintenance expense, variable operations
and maintenance expense and fuel cost,
• Overview of the methodology utilized to prepare Lazard’s LCOE analysis,
• Considerations regarding the operating characteristics and applications of various generation technologies,
• Summary of assumptions utilized in Lazard’s LCOE analysis, and
• Summary considerations in respect of Lazard’s approach to evaluating the LCOE of various conventional and renewable energy technologies.
Other factors would also have a potentially significant effect on the results contained herein, but have not been examined in the scope of this
current analysis. These additional factors, among others, could include: capacity value vs. energy value; network upgrades, transmission,
congestion or other integration-related costs; significant permitting or other development costs, unless otherwise noted; and costs of
complying with various environmental regulations (e.g., carbon emissions offsets or emissions control systems). This analysis also does not
address potential social and environmental externalities, including, for example, the social costs and rate consequences for those who cannot
afford distributed generation solutions, as well as the long-term residual and societal consequences of various conventional generation
technologies that are difficult to measure (e.g., nuclear waste disposal, airborne pollutants, greenhouse gases, etc.).
See original working URL: https://www.lazard.com/media/451419/lazards-levelized-cost-of-energy-version-140.pdf#page=9
[Notice in all of the above, the costs of operation and maintenance have not been included for wind and solar. For more on the failings of wind and solar, see: https://i2mconsultants.com/downloads/corp/BEYONDHYDROCARBONS-2020ExpandedIIRev.pdf ]
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