Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Lazard Ltd.'s annual Levelized Cost of Energy Analysis (LCOE
14.0), released in late October 2020, shows that the cost of
renewable energy continues to decline and improve its
cost-competitiveness with conventional generation. The analysis
incorporated the use of hydrogen blends for combined cycle gas
generation for the first time, with Lazard calling it "potentially
disruptive and strategic role in managing the intermittency of
renewable power generation."
The LCOE in the US of generating energy from onshore wind and
utility-scale solar projects fell by 2% and 9%, respectively, over
the past year, Lazard reported. "While the reductions in costs
continue, their rate of decline has slowed, especially for onshore
wind. Costs for utility-scale solar have been falling more rapidly
(about 11% per year) compared to onshore wind (about 5% per year)
over the past five years," it said.
When US government subsidies are included, the cost of onshore
wind and utility-scale solar is competitive with the marginal cost
of coal, nuclear and combined cycle gas generation (though regional
differences can change the relationships):
Utility-scale solar: $31/MWh
Utility-scale wind: $26/MWh
Coal: $41/MWh
Nuclear: $29/MWh
Combined cycle gas generation: $28/MWh
Lazard also released an update to its Levelized Cost of Storage
analysis (LCOS 6.0), showing that storage costs have declined
across most use cases and technologies, particularly for
shorter-duration applications.
"Sustained cost declines were observed across the use cases
analyzed in our LCOS for lithium-ion technologies (on both a $/MWh
and $/kW-year basis). The cost declines were more pronounced for
storage modules than for balance of system components or ongoing
operations and maintenance expenses," it said.
"Project economics analyzed for standalone behind-the-meter
applications remain relatively expensive without subsidies, while
utility-scale solar PV+ storage systems are becoming increasingly
attractive. Long-duration storage is gaining traction as a
commercially viable solution to challenges created by intermittent
energy resources such as solar or wind," it said.
Posted 22 November 2020 by Kevin Adler, Chief Editor
{"items" : [
{"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2flevelized-cost-of-energy-analysis-finds-role-for-hydrogen.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2flevelized-cost-of-energy-analysis-finds-role-for-hydrogen.html&text=Levelized+cost+of+energy+analysis+finds+role+for+hydrogen+%7c+IHS+Markit+","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2flevelized-cost-of-energy-analysis-finds-role-for-hydrogen.html","enabled":true},{"name":"email","url":"?subject=Levelized cost of energy analysis finds role for hydrogen | IHS Markit &body=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2flevelized-cost-of-energy-analysis-finds-role-for-hydrogen.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=Levelized+cost+of+energy+analysis+finds+role+for+hydrogen+%7c+IHS+Markit+ http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2flevelized-cost-of-energy-analysis-finds-role-for-hydrogen.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"}
]}
