• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 3 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 3 hours Phase One trade deal, for China it is all about technology war
  • 11 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Might be Time for NG Producers to Find New Career
  • 1 day What's the Endgame Here?
  • 15 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day Beijing Must Face Reality That Taiwan is Independent
  • 17 hours Wind Turbine Blades Not Recyclable
  • 13 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Oil Glut Overshadows Geopolitical Risk In 2020

Oil Glut Overshadows Geopolitical Risk In 2020

In its latest report, the…

This Emerging Oil Hotspot Threatens The OPEC Deal

This Emerging Oil Hotspot Threatens The OPEC Deal

Guyana has exported its first…

Cost of Renewable Energy has Fallen 50% Since 2008

Cost of Renewable Energy has Fallen 50% Since 2008

We all know that renewable energy sources are becoming more cost-competitive with fossil fuels as time progresses. The economic and environmental benefits that clean energy offers provides a constant incentive to drive technological innovation and utility-scale deployment around the world.

The recently released Levelized Cost of Energy Analysis 7.0 from the financial advisor and asset management firm Lazard Freres & Co., shows that the levelized cost of electricity (LCOE) for wind and solar installations across the US has fallen by over 50% in the past four years.

This has led them to estimate that utility scale solar PV is a competitive source of peak energy compared to fossil fuels for most parts of the world, before subsidies are even taken into account. In fact Lazard believes that many forms of renewable energy generation are already cost-competitive with fossil fuel generation at an unsubsidised LCOE level.

Related Article: Syria and Solar Panels

They calculated that solar PV and wind energy  produced electricity at a cost of $68-$104 per MWh, similar to baseload power from coal, at $65-$145 per MWh; nuclear, at $86-$122 per MWh; and integrated gasification combined cycle, at $95-$154 per MWh. When including the federal tax subsidies offered in the US the LCOE for wind falls to $23-$85 per MWh, and thin-film utility scale solar PV comes in at just $51-$78 per MWh.

Lazard predicts that as energy storage technologies improve, and become more commonplace, the LCOE of renewable energy sources will fall even further. And whilst utility-scale solar PV installations have one of the lowest LCOE figures, rooftop solar PV panels remain one of the most expensive energy sources in comparison.

Lazard has also suggested that the future of renewable energy sources likely lies in the role of distributed small-scale generation, as the expensive capital investment needed to construct large fossil fuel plants leads to far higher LCOE values, whereas renewable energy can be installed on a much smaller scale, nearer to their market, and avoiding the huge energy carrying infrastructure.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play