Is the Cost of Renewable Energy Falling?
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 U.S. has fallen by over 50 percent 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 unsubsidized LCOE level.