RESEARCH
Lazard: Levelized Cost of Energy
This document is a report from Lazard’s Power, Energy & Infrastructure Group, providing a comprehensive analysis of the levelized cost of energy (LCOE) for various renewable and conventional generation technologies. The report evaluates the financial viability of these technologies, considering factors like capital costs, operating expenses, and government subsidies, ultimately aiming to illuminate the cost-competitiveness of different energy options. The analysis also examines the impact of energy storage and hydrogen production on the energy transition, highlighting emerging trends and the potential for cost reduction through technological advancement. Lazard’s analysis emphasizes the importance of diverse generation fleets, continuous innovation, and the critical role of government policy in driving a successful energy transition.