Lazard’s latest annual Levelized Cost of Energy Analysis (LCOE 14.0) shows that as the cost of renewable energy continues to decline, certain technologies (e.g., onshore wind and utility-scale solar), which became cost-competitive with conventional generation several years ago on a new-build basis, continue to maintain competitiveness with the marginal cost of selected existing conventional generation technologies.
The International Energy Agency has often been mocked for its poor assessment of the potential of solar power, both in terms of deployment and cost reductions, and it is still is. But now, even the IEA has conceded that solar power is low cost, in fact it is now “the cheapest electricity in history.” This extraordinary admission was included in the 2020 version of its annual reference tome, the World Energy Outlook – a must read for energy wonks and the energy industry, even if its interpretation of industry trends, and its promotion of “business as usual” over climate targets frustrates many.
LevelTen Energy’s Q3 2020 PPA Price Index report shows that average utility-scale solar PPA prices rose again in Q3, up to $29.3/MWh. And while the ITC step-down and simple economics are to blame, LevelTen shares that the increases are no cause for alarm.