Lazard | November 2017:
Lazard’s Levelized Cost of Energy (“LCOE”) analysis addresses the following topics:
- Comparative “levelized cost of energy” analysis for various technologies on a $/MWh basis, including sensitivities, as relevant,for U.S. federal tax subsidies, fuel costs, geography and cost of capital, among other factors.
- Comparison of the implied cost of carbon abatement for various generation technologies.
- Illustration of how the cost of various generation technologies compares against illustrative generation rates in a subset of the largest metropolitan areas of the U.S.
- Illustration of utility-scale and rooftop solar versus peaking generation technologies globally.
- Illustration of how the costs of utility-scale and rooftop solar and wind vary across the U.S., based on illustrative regional resources.
- Illustration of the declines in the levelized cost of energy for various generation technologies over the past several years.
- Comparison of assumed capital costs on a $/kW basis for various generation technologies.
- Illustration of the impact of cost of capital on the levelized cost of energy for selected generation technologies.
- Decomposition of the levelized cost of energy for various generation technologies by capital cost, fixed operations and maintenance expense, variable operations and maintenance expense, and fuel cost, as relevant.
- Considerations regarding the usage characteristics and applicability of various generation technologies, taking into account factors such as location requirements/constraints, dispatch capability, land and water requirements and other contingencies.
- Summary assumptions for the various generation technologies examined.
- Summary of Lazard’s approach to comparing the levelized cost of energy for various conventional and Alternative Energy generation technologies.
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