{"id":629869,"date":"2023-04-14T03:55:00","date_gmt":"2023-04-14T08:55:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/14\/average-solar-lcoe-increases-for-first-time-this-year\/"},"modified":"2023-04-14T03:55:00","modified_gmt":"2023-04-14T08:55:00","slug":"average-solar-lcoe-increases-for-first-time-this-year","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/14\/average-solar-lcoe-increases-for-first-time-this-year\/","title":{"rendered":"Average solar LCOE increases for first time this year"},"content":{"rendered":"
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A new report by Lazard compares the levelized cost of energy (LCOE) for various generation technologies on a $\/MWh basis. It shows that utility-scale solar and onshore wind LCOE increased for the first time in 2023, at $24\/MWh to $96\/MWh for solar and $24\/MWh to $75 MWh for wind. Nevertheless, the two renewable sources are still the economic frontrunners when compared to nuclear, gas, and coal.<\/p>\n

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Solar and wind are still the most affordable sources of electricity, but their LCOE has increased for the first time in 2023, according to a new report<\/a>\u00a0by US-based financial firm Lazard<\/a>.<\/p>\n

The report offers a comparative LCOE analysis for various generation technologies on a $\/MWh basis, with exceptions for US federal tax subsidies, fuel prices, carbon pricing, and the cost of capital. The report also includes a cost-of-firming-intermittency analysis for the first time. Unlike in previous years, the LCOE for utility-scale solar omits thin-film technology and only focuses on crystalline silicon.<\/p>\n

In a base comparison, without considering subsidies, fuel prices, or carbon pricing, utility-scale solar and wind have the lowest LCOE of all sources. Utility-scale solar PV comes in anywhere from $24\/MWh to $96\/MWh, while onshore wind registers the lowest possible LCOE over the shortest range, from $24\/MWh to $75\/MWh. Offshore wind\u2019s LCOE ranges between $72\/MWh and $140\/MWh.<\/p>\n

For comparison, under the same criteria, gas peaking comes in at $115\/MWh to $221\/MWh, nuclear is $141\/MWh to $221\/MWh, coal is $68\/MWh to $166\/MWh, and gas combined cycle is $39\/MWh to $ 101\/MWh, according to Lazard.<\/p>\n

Unsubsidized residential rooftop PV has an LCOE between $117\/MWh and $282\/MWh, while the LCOE of community and commercial and industrial (C&I) solar ranges between $49\/MWh and $185\/MWh. When factoring in federal tax subsidies under the US Inflation Reduction Act, including domestic contest provisions, rooftop PV comes in at $74\/MWh to $229\/MWh, and community\/C&I rooftop PV at $32\/MWh to $155\/MWh.<\/p>\n

For the first time in the history of Lazard\u2019s analysis, the average LCOE for both utility-scale PV and onshore wind increased. Inflation, supply chain challenges, and the global energy crisis all had a role to play in putting a stop to solar\u2019s \u201crace to the bottom.\u201d Nevertheless, Lazard notes that \u201cthe LCOE of the best-in-class onshore wind and utility-scale solar has declined at the low-end of our cost range, the reasons for which could catalyze ongoing consolidation across the sector.\u201d<\/p>\n

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For utility-scale PV, the LCOE range in 2021 was very small, at $30\/MWh to $41\/MWh. In 2023, it ranged from $24\/MWh to $96\/MWh, thereby increasing the average LCOE.<\/p>\n

Lazard estimates that between 2016 and 2023, utility-scale PV\u2019s LCOE increased by 3%, calculated as the average percentage increase of the high-end and low-end of the LCOE range. Between 2009 and 2023, however, solar\u2019s LCOE decreased by 84% according to the same metric.<\/p>\n

The new report also includes an analysis of the levelized cost of storage and hydrogen, which pv magazine<\/strong> will cover in separate articles.<\/p>\n

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\n Beatriz Santos<\/p>\n","protected":false},"excerpt":{"rendered":"

A new report by Lazard compares the levelized cost of energy (LCOE) for various generation technologies on a $\/MWh basis. It shows that utility-scale solar and onshore wind LCOE increased for the first time in 2023, at $24\/MWh to $96\/MWh for solar and $24\/MWh to $75 MWh for wind. Nevertheless, the two renewable sources are […]<\/p>\n","protected":false},"author":1,"featured_media":629870,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23082,534,3945],"tags":[],"class_list":{"0":"post-629869","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-average","8":"category-financial","9":"category-solar"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=629869"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/629870"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=629869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=629869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=629869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}