Levelized Cost of Energy: Renewables Declines Will Continue at Slower Rate

Elevated trade and geopolitical tensions are making projected cost declines of capex-intensive renewable technologies slower than we had previously expected. As part of Energy Intelligence’s proprietary modeling, we have revised up our long-term renewables LCOE projections. Nevertheless, renewables will still be cheaper than fossil fuels and we still envisage accelerated renewable rollout over the next few decades. While LCOE continues to attract some methodology criticism, it remains a useful tool and our analysis shows that renewables generation would still be globally cost competitive even adjusting for these sensitivities.

Key contents of the report:

• LCOE Outlook
  
• Common Concerns of LCOE Analysis
  
• Implications for the Electricity Mix
  
• Appendix: Assumptions