WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 228
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LCOE
FIGURE 15
U.S. LCOE - Unsubsidized Analysis ($/MWh)
USA and European LCOE 2023
Renewable Energy
300
228
250
210
Year
222
191
200
168
139
150
142
73
122
110
50
60
54
PV - rooftop
community C&I
Solar PV unity scale
69
74
64
29
0
PV - rooftop
residential
108
106
92
100
45
27
Solar PV +
storage - unity
scale
Geothermal
Wind onshore
Wind o昀昀shore
Gas peaking
Nuclear
Coal
Gas combined
cycle
FIGURE 16
Average European LCOE ($/MWh)
Renewable Energy
Conventional Energy
303
300
200
188
159
150
159
119
110
75
50
66
76
54
Solar PVbattery
50
Solar PV +
storage unity scale
162
65
146
120
113
75
40
0
PV residential
209
162
Geothermal
Wind onshore
Wind o昀昀shore
Natural gas
peaking
Nuclear
Coal
Gas combined
cycle
WEMO 2024
250
100
Source: 2024 Lazard’s Levelized Cost of Energy Analysis, Wood Mackenzie, Montel, Nuveen, BNEF
Conventional Energy
284
228
Despite high end LCOE declines for selected renewable
energy technologies, the low ends of U.S. LCOE have
increased for the 昀椀rst time ever, driven by the persistence of
certain cost pressures (e.g., high interest rates, etc.). These
two phenomena result in tighter LCOE ranges (o昀昀setting the
signi昀椀cant range expansion observed last year) and relatively
stable LCOE averages year-over-year. Solar and wind power
remain the cheapest sources for new electricity generation,
with utility-scale solar and onshore wind leading the way.
The levelised cost of electricity (LCOE) for green technologies
in Europe is set to drop up to 10-15% in 2024. In 2023, the
average European LCOE for o昀昀shore wind was last seen
around €100/MWh, according to Irex. For onshore wind,
LCOE should remain stable or fall up to 5% this year. For solar
energy, Irex expected panel costs to fall by 10-15%, leading
to a drop in LCOE of just under 10% for large photovoltaic
systems and agrivoltaics plants comprising solar panels on
farmland. The drop in LCOE for rooftop or 昀氀oating PV is not
expected to be more than 5%.
