Lazard Finds Renewable Energy Cheaper Than Fossil Fuels
According to Lazard’s 2019 Levelized Cost of Energy (LCOE) Report utility scale solar PV is at cost parity with fossil fuel.Â
The report states, “…when US government subsidies, such as the ITC, are included, the cost of building new onshore wind and utility-scale solar (with values averaging $28/MWh and $36/MWh, respectively) is competitive with the marginal cost of coal and nuclear generation (with values averaging $34/MWh and $29/MWh, respectively).”
While the Lazard report finds renewable energy cheaper than fossil fuels, the report emphasizes that continued innovation in solar project development is very important for us to continue to reduce costs…
The report observed that, “…regional differences in resource availability and fuel costs can drive meaningful variance in the LCOE of certain technologies, although some of this variance can be mitigated by adjustments to a project’s capital structure, reflecting the availability, and cost, of debt and equity.”
Based on the potential for solar PV and energy storage to grow in the U.S., solar project finance, such as solar tax equity, and development has massive growth potential…