Up to Twice as Expensive: A Key Resource for the Energy Transition Is Becoming Sharply More Expensive

The cost of building combined-cycle gas-fired plants will rise substantially, and the decision to build a combined-cycle gas power plant is currently at its most expensive in the past decade, according to a new analysis by Lazard examining the cost of electricity generation from individual sources. In the case of combined-cycle gas plants, this represents a major shift in the trend: plants being completed now remain relatively favourable in terms of capital costs, but building new facilities will become more expensive.  

Investment bank Lazard has for several years published an analysis comparing the cost of electricity generation from the main generating technologies in the US market. However, this cost overview is also valuable for Europe. The bank primarily compares technologies using their current levelized cost of energy (LCOE), but also indicates other valuable information on the capital intensity of individual technologies, including the costs that can be expected in the coming years.