# Cost of electricity by source

(Redirected from Levelized cost of electricity)

In electrical power generation, the distinct ways of generating electricity incur significantly different costs. Calculations of these costs can be made at the point of connection to a load or to the electricity grid. The cost is typically given per kilowatt-hour or megawatt-hour. It includes the initial capital, discount rate, as well as the costs of continuous operation, fuel, and maintenance. This type of calculation assists policymakers, researchers and others to guide discussions and decision making.

The levelized cost of energy (LCOE) is a measure of a power source that allows comparison of different methods of electricity generation on a consistent basis. It is an economic assessment of the average total cost to build and operate a power-generating asset over its lifetime divided by the total energy output of the asset over that lifetime. The LCOE can also be regarded as the average minimum price at which electricity must be sold in order to break-even over the lifetime of the project.

## Cost factors

While calculating costs, several internal cost factors have to be considered.[1] Note the use of "costs," which is not the actual selling price, since this can be affected by a variety of factors such as subsidies and taxes:

• Capital costs (including waste disposal and decommissioning costs for nuclear energy) – tend to be low for fossil fuel power stations; high for wind turbines, solar PV (photovoltaics); very high for waste to energy, wave and tidal, solar thermal, and nuclear.
• Fuel costs – high for fossil fuel and biomass sources, low for nuclear, and zero for many renewables. Fuel costs can vary somewhat unpredictably over the life of the generating equipment, due to political and other factors.
• Factors such as the costs of waste (and associated issues) and different insurance costs are not included in the following: Works power, own use or parasitic load – that is, the portion of generated power actually used to run the station's pumps and fans has to be allowed for.

To evaluate the total cost of production of electricity, the streams of costs are converted to a net present value using the time value of money. These costs are all brought together using discounted cash flow.[2][3]

### Levelized cost of electricity

The levelized cost of electricity (LCOE), also known as Levelized Energy Cost (LEC), is the net present value of the unit-cost of electricity over the lifetime of a generating asset. It is often taken as a proxy for the average price that the generating asset must receive in a market to break even over its lifetime. It is a first-order economic assessment of the cost competitiveness of an electricity-generating system that incorporates all costs over its lifetime: initial investment, operations and maintenance, cost of fuel, cost of capital.

The levelized cost is that value for which an equal-valued fixed revenue delivered over the life of the asset's generating profile would cause the project to break even. This can be roughly calculated as the net present value of all costs over the lifetime of the asset divided by the total electrical energy output of the asset.[4]

The levelized cost of electricity (LCOE) is given by:

${\displaystyle \mathrm {LCOE} ={\frac {\text{sum of costs over lifetime}}{\text{sum of electrical energy produced over lifetime}}}={\frac {\sum _{t=1}^{n}{\frac {I_{t}+M_{t}+F_{t}}{\left({1+r}\right)^{t}}}}{\sum _{t=1}^{n}{\frac {E_{t}}{\left({1+r}\right)^{t}}}}}}$
 It : investment expenditures in the year t Mt : operations and maintenance expenditures in the year t Ft : fuel expenditures in the year t Et : electrical energy generated in the year t r : discount rate n : expected lifetime of system or power station
Note: Some caution must be taken when using formulas for the levelized cost, as they often embody unseen assumptions, neglect effects like taxes, and may be specified in real or nominal levelized cost. For example, other versions of the above formula do not discount the electricity stream.[citation needed]

Typically the LCOE is calculated over the design lifetime of a plant, which is usually 20 to 40 years, and given in the units of currency per kilowatt-hour or megawatt-day, for example AUD/kWh or EUR/kWh or per megawatt-hour, for example AUD/MWh (as tabulated below).[5] However, care should be taken in comparing different LCOE studies and the sources of the information as the LCOE for a given energy source is highly dependent on the assumptions, financing terms and technological deployment analyzed.[6] In particular, assumption of capacity factor has significant impact on the calculation of LCOE. Thus, a key requirement for the analysis is a clear statement of the applicability of the analysis based on justified assumptions.[6]

Many scholars,[specify] such as Paul Joskow, have described limits to the "levelized cost of electricity" metric for comparing new generating sources. In particular, LCOE ignores time effects associated with matching production to demand. This happens at two levels:

• Dispatchability, the ability of a generating system to come online, go offline, or ramp up or down, quickly as demand swings.
• The extent to which the availability profile matches or conflicts with the market demand profile.

Thermally lethargic technologies like coal and nuclear are physically incapable of fast ramping. Capital intensive technologies such as wind, solar, and nuclear are economically disadvantaged unless generating at maximum availability since the LCOE is nearly all sunk-cost capital investment. Intermittent power sources, such as wind and solar, may incur extra costs associated with needing to have storage or backup generation available.[7] At the same time, intermittent sources can be competitive if they are available to produce when demand and prices are highest, such as solar during summertime mid-day peaks seen in hot countries where air conditioning is a major consumer.[6] Despite these time limitations, leveling costs is often a necessary prerequisite for making comparisons on an equal footing before demand profiles are considered, and the levelized-cost metric is widely used for comparing technologies at the margin, where grid implications of new generation can be neglected.

### Bloomberg (2018)

Bloomberg New Energy Finance estimates a "global LCOE for onshore wind [of] $55 per megawatt-hour, down 18% from the first six months of [2017], while the equivalent for solar PV without tracking systems is$70 per MWh, also down 18%." Bloomberg does not provide its global public LCOEs for fossil fuels, but it notes in India they are significantly more expensive: "BNEF is now showing benchmark LCOEs for onshore wind of just $39 per MWh, down 46% on a year ago, and for solar PV at$41, down 45%. By comparison, coal comes in at $68 per MWh, and combined-cycle gas at$93." [36][37]

### IRENA (2018)

The International Renewable Energy Agency (IRENA) released a study based on comprehensive international datasets in January 2018 which projects the fall by 2020 of the kilowatt cost of electricity from utility scale renewable projects such as onshore wind farms to a point equal or below that of electricity from conventional sources.[38]

### Banks (2018)

The European Bank for Reconstruction and Development (EBRD) says that "renewables are now cheapest energy source", elaborating: "the Bank believes that renewable energy markets in many of the countries where it invests have reached a stage where the introduction of competitive auctions will lead both to a steep drop in electricity prices and an increase in investment." [39] The World Bank (World Bank) President Jim Yong Kim agreed on 10 October 2018: "We are required by our by-laws to go with the lowest cost option, and renewables have now come below the cost of [fossil fuels]." [40]

## Regional and historical studies

### Australia

LCOE in AUD per MWh for some coal and wind technologies (2012) from the Australian Technology Assessment (2012), Table 5.2.1.[41]
Technology Cost with CO2 price Cost without CO2 price
Supercritical brown coal $162$95
Supercritical brown coal with CCS $205$192
Supercritical black coal $135 –$145 $84 –$94
Supercritical black coal with CCS $162 –$205 $153 –$196
Wind $111 –$122 $111 –$122

LCOEs by source in Australia in 2012.

According to various studies, the cost for wind and solar has dramatically reduced since 2006. For example, the Australian Climate Council states that over the 5 years between 2009–2014 solar costs fell by 75% making them comparable to coal, and are expected to continue dropping over the next 5 years by another 45% from 2014 prices.[42] They also found that wind has been cheaper than coal since 2013, and that coal and gas will become less viable as subsidies are withdrawn and there is the expectation that they will eventually have to pay the costs of pollution.[42]

A CO2CRC report, printed on the 27th of November 2015, titled "Wind, solar, coal and gas to reach similar costs by 2030:", provides the following updated situation in Australia. "The updated LCOE analysis finds that in 2015 natural gas combined cycle and supercritical pulverised coal (both black and brown) plants have the lowest LCOEs of the technologies covered in the study. Wind is the lowest cost large-scale renewable energy source, while rooftop solar panels are competitive with retail electricity prices. By 2030 the LCOE ranges of both conventional coal and gas technologies as well as wind and large-scale solar converge to a common range of A$50 to A$100 per megawatt hour."

An updated report, posted on the 27th of September 2017, titled "Renewables will be cheaper than coal in the future. Here are the numbers", indicated that a 100% renewables system is competitive with new-build supercritical (ultrasupercritical) coal, which, according to the Jacobs calculations in the report link above, would come in at around A$75(80) per MWh between 2020 and 2050. This projection for supercritical coal is consistent with other studies by the CO2CRC in 2015 (A$80 per MWh) and used by CSIRO in 2017 (A$65-80 per MWh). ### France The International Energy Agency and EDF have estimated for 2011 the following costs.[citation needed] For nuclear power, they include the costs due to new safety investments to upgrade the French nuclear plant after the Fukushima Daiichi nuclear disaster; the cost for those investments is estimated at 4 €/MWh. Concerning solar power, the estimate of 293 €/MWh is for a large plant capable of producing in the range of 50–100 GWh/year located in a favorable location (such as in Southern Europe). For a small household plant that can produce around 3 MWh/year, the cost is between 400 and 700 €/MWh, depending on location. Solar power was by far the most expensive renewable source of electricity among the technologies studied, although increasing efficiency and longer lifespan of photovoltaic panels together with reduced production costs have made this source of energy more competitive since 2011. By 2017, the cost of photovoltaic solar power had decreased to less than 50 €/MWh. French LCOE in €/MWh (2011) Technology Cost in 2011 Cost in 2017 Hydro power 20 Nuclear (with State-covered insurance costs) 50 Natural gas turbines without CO2 capture 61 Onshore wind 69 39[43] Solar farms 293 43.24[43] ### Germany Comparison of the levelized cost of electricity for some newly built renewable and fossil-fuel based power stations in EuroCent per kWh (Germany, 2018)[44] Note: employed technologies and LCOE differ by country and change over time. In November 2013, the Fraunhofer Institute for Solar Energy Systems ISE assessed the levelised generation costs for newly built power plants in the German electricity sector.[45] PV systems reached LCOE between 0.078 and 0.142 Euro/kWh in the third quarter of 2013, depending on the type of power plant (ground-mounted utility-scale or small rooftop solar PV) and average German insolation of 1000 to 1200 kWh/ per year (GHI). There are no LCOE-figures available for electricity generated by recently built German nuclear power plants as none have been constructed since the late 1980s. An update of the ISE study was published in March 2018[44]. German LCOE in €/MWh ISE (2013) ISE (2018) Technology Low cost High cost Low cost High cost Coal-fired power plants brown coal 38 53 46 80 hard coal 63 80 63 99 CCGT power plants 75 98 78 100 Wind Power Onshore wind farms 45 107 40 82 Offshore wind farms 119 194 75 138 Solar PV systems 78 142 37 115 Biogas power plant 135 250 101 147 Source: Fraunhofer ISE (2013) – Levelized cost of electricity renewable energy technologies[45] Source: Fraunhofer ISE (2018) – Stromgestehungskosten erneuerbare Energien[44] ### Japan A 2010 study by the Japanese government (pre-Fukushima disaster), called the Energy White Paper,[citation needed] concluded the cost for kilowatt hour was ¥49 for solar, ¥10 to ¥14 for wind, and ¥5 or ¥6 for nuclear power. Masayoshi Son, an advocate for renewable energy, however, has pointed out that the government estimates for nuclear power did not include the costs for reprocessing the fuel or disaster insurance liability. Son estimated that if these costs were included, the cost of nuclear power was about the same as wind power.[46][47][48] ### United Kingdom The Institution of Engineers and Shipbuilders in Scotland commissioned a former Director of Operations of the British National Grid, Colin Gibson, to produce a report on generation levelised costs that for the first time would include some of the transmission costs as well as the generation costs. This was published in December 2011.[49] The institution seeks to encourage debate of the issue, and has taken the unusual step among compilers of such studies of publishing a spreadsheet.[50] On 27 February 2015 Vattenfall Vindkraft AS agreed to build the Horns Rev 3 offshore wind farm at a price of 10.31 Eurocent per kWh. This has been quoted as below £100 per MWh. In 2013 in the United Kingdom for a new-to-build nuclear power plant (Hinkley Point C: completion 2023), a feed-in tariff of £92.50/MWh (around 142 USD/MWh) plus compensation for inflation with a running time of 35 years was agreed.[51][52] The Department for Business, Energy and Industrial Strategy (BEIS) publishes regular estimates of the costs of different electricity generation sources, following on the estimates of the merged Department of Energy and Climate Change (DECC). Levelised cost estimates for new generation projects begun in 2015 are listed in the table below.[53] Estimated UK LCOE for projects starting in 2015, £/MWh Power generating technology Low Central High Nuclear PWR (Pressurized Water Reactor)(a) 82 93 121 Solar Large-scale PV (Photovoltaic) 71 80 94 Wind Onshore 47 62 76 Offshore 90 102 115 Biomass 85 87 88 Natural Gas Combined Cycle Gas Turbine 65 66 68 CCGT with CCS (Carbon capture and storage) 102 110 123 Open-Cycle Gas Turbine 157 162 170 Coal Advanced Supercritical Coal with Oxy-comb. CCS 124 134 153 IGCC (Integrated Gasification Combined Cycle) with CCS 137 148 171 (a) new nuclear power: guaranteed strike price of £92.50/MWh for Hinkley Point C in 2023[54][55]) ### United States #### Energy Information Administration Projected LCOE in the U.S. by 2020 (as of 2015) in dollars per MWh[56] The following data are from the Energy Information Administration's (EIA) Annual Energy Outlook released in 2015 (AEO2015). They are in dollars per megawatt-hour (2013 USD/MWh). These figures are estimates for plants going into service in 2020.[10] The LCOE below is calculated based off a 30-year recovery period using a real after tax weighted average cost of capital (WACC) of 6.1%. For carbon intensive technologies 3 percentage points are added to the WACC. (This is approximately equivalent fee of$15 per metric ton of carbon dioxide CO2)

Since 2010, the US Energy Information Administration (EIA) has published the Annual Energy Outlook (AEO), with yearly LCOE-projections for future utility-scale facilities to be commissioned in about five years' time. In 2015, EIA has been criticized by the Advanced Energy Economy (AEE) Institute after its release of the AEO 2015-report to "consistently underestimate the growth rate of renewable energy, leading to 'misperceptions' about the performance of these resources in the marketplace". AEE points out that the average power purchase agreement (PPA) for wind power was already at $24/MWh in 2013. Likewise, PPA for utility-scale solar PV are seen at current levels of$50–$75/MWh.[57] These figures contrast strongly with EIA's estimated LCOE of$125/MWh (or $114/MWh including subsidies) for solar PV in 2020.[58] Projected LCOE in the U.S. by 2022 (as of 2016)$/MWh
Plant Type Min Capacity

Weighted Average

Max
Coal with 30% carbon sequestration 128.9 NB 196.3
Coal with 90% carbon sequestration 102.7 NB 142.5
Natural Gas-fired Conventional Combined Cycle 52.4 58.6 83.2
Natural Gas-fired Advanced Combined Cycle 51.6 53.8 81.7
Natural Gas-fired Advanced CC with CCS 63.1 NB 90.4
Natural Gas-fired Conventional Combustion Turbine 98.8 100.7 148.3
Natural Gas-fired Advanced Combustion Turbine 85.9 87.1 129.8
Advanced Nuclear 95.9 96.2 104.3
Geothermal 42.8 44.0 53.4
Biomass 84.8 97.7 125.3
Wind Onshore 43.4 55.8 75.6
Wind Offshore 136.6 NB 212.9
Solar PV 58.3 73.7 143.0
Solar Thermal 176.7 NB 372.8
Hydro 57.4 63.9 69.8

The electricity sources which had the most decrease in estimated costs over the period 2010 to 2017 were solar photovoltaic (down 81%), onshore wind (down 63%) and advanced natural gas combined cycle (down 32%).

For utility-scale generation put into service in 2040, the EIA estimated in 2015 that there would be further reductions in the constant-dollar cost of concentrated solar power (CSP) (down 18%), solar photovoltaic (down 15%), offshore wind (down 11%), and advanced nuclear (down 7%). The cost of onshore wind was expected to rise slightly (up 2%) by 2040, while natural gas combined cycle electricity was expected to increase 9% to 10% over the period.[58]

Historical summary of EIA's LCOE projections (2010–2017)
Estimate in $/MWh Coal convent'l NG combined cycle Nuclear advanced Wind Solar of year ref for year convent'l advanced onshore offshore PV CSP 2010 [59] 2016 100.4 83.1 79.3 119.0 149.3 191.1 396.1 256.6 2011 [60] 2016 95.1 65.1 62.2 114.0 96.1 243.7 211.0 312.2 2012 [61] 2017 97.7 66.1 63.1 111.4 96.0 N/A 152.4 242.0 2013 [62] 2018 100.1 67.1 65.6 108.4 86.6 221.5 144.3 261.5 2014 [63] 2019 95.6 66.3 64.4 96.1 80.3 204.1 130.0 243.1 2015 [58] 2020 95.1 75.2 72.6 95.2 73.6 196.9 125.3 239.7 2016 [64] 2022 NB 58.1 57.2 102.8 64.5 158.1 84.7 235.9 2017 [65] 2022 NB 58.6 53.8 96.2 55.8 NB 73.7 NB 2018 [66] 2022 NB 48.3 48.1 90.1 48.0 124.6 59.1 NB Nominal change 2010–2018 NB −42% −39% −24% −68% -35% −85% NB Note: Projected LCOE are adjusted for inflation and calculated on constant dollars based on two years prior to the release year of the estimate. Estimates given without any subsidies. Transmission cost for non-dispatchable sources are on average much higher. NB = "Not built" (No capacity additions are expected.) #### NREL OpenEI (2015) OpenEI, sponsored jointly by the US DOE and the National Renewable Energy Laboratory (NREL), has compiled a historical cost-of-generation database[67] covering a wide variety of generation sources. Because the data is open source it may be subject to frequent revision. LCOE from OpenEI DB as of June, 2015 Plant Type (USD/MWh) Min Median Max Data Source Year Distributed Generation 10 70 130 2014 Hydropower Conventional 30 70 100 2011 Small Hydropower 140 2011 Wind Onshore (land based) 40 80 2014 Offshore 100 200 2014 Natural Gas Combined Cycle 50 80 2014 Combustion Turbine 140 200 2014 Coal Pulverized, scrubbed 60 150 2014 Pulverized, unscrubbed 40 2008 IGCC, gasified 100 170 2014 Solar Photovoltaic 60 110 250 2014 CSP 100 220 2014 Geothermal Hydrothermal 50 100 2011 Blind 100 2011 Enhanced 80 130 2014 Biopower 90 110 2014 Fuel Cell 100 160 2014 Nuclear 90 130 2014 Ocean 230 240 250 2011 Note: Only Median value = only one data point. Only Max + Min value = Only two data points #### California Energy Commission (2014) LCOE data from the California Energy Commission report titled "Estimated Cost of New Renewable and Fossil Generation in California".[68] The model data was calculated for all three classes of developers: merchant, investor-owned utility (IOU), and publicly owned utility (POU). Type Year 2013 (Nominal $$) (/MWh) Year 2024( Nominal$$) ($/MWh)
Name Merchant IOU POU Merchant IOU POU
Generation Turbine 49.9MW 662.81 2215.54 311.27 884.24 2895.90 428.20
Generation Turbine 100MW 660.52 2202.75 309.78 881.62 2880.53 426.48
Generation Turbine – Advanced 200MW 403.83 1266.91 215.53 533.17 1615.68 299.06
Combined Cycle 2CTs No Duct Firing 500MW 116.51 104.54 102.32 167.46 151.88 150.07
Combined Cycle 2CTs With Duct Firing 500MW 115.81 104.05 102.04 166.97 151.54 149.88
Biomass Fluidized Bed Boiler 50MW 122.04 141.53 123.51 153.89 178.06 156.23
Geothermal Binary 30MW 90.63 120.21 84.98 109.68 145.31 103.00
Geothermal Flash 30MW 112.48 146.72 109.47 144.03 185.85 142.43
Solar Parabolic Trough W/O Storage 250MW 168.18 228.73 167.93 156.10 209.72 156.69
Solar Parabolic Trough With Storage 250MW 127.40 189.12 134.81 116.90 171.34 123.92
Solar Power Tower W/O Storage 100MW 152.58 210.04 151.53 133.63 184.24 132.69
Solar Power Tower With Storage 100MW 6HR 145.52 217.79 153.81 132.78 196.47 140.58
Solar Power Tower With Storage 100MW 11HR 114.06 171.72 120.45 103.56 154.26 109.55
Solar Photovoltaic (Thin Film) 100MW 111.07 170.00 121.30 81.07 119.10 88.91
Solar Photovoltaic (Single-Axis) 100MW 109.00 165.22 116.57 98.49 146.20 105.56
Solar Photovoltaic (Thin Film) 20MW 121.31 186.51 132.42 93.11 138.54 101.99
Solar Photovoltaic (Single-Axis) 20MW 117.74 179.16 125.86 108.81 162.68 116.56
Wind Class 3 100MW 85.12 104.74 75.8 75.01 91.90 68.17
Wind Class 4 100MW 84.31 103.99 75.29 75.77 92.88 68.83

With a carbon price of $50/ton (which would raise the price of coal-fired power by 5c/kWh), solar PV is cost-competitive in most locations. The declining price of PV has been reflected in rapidly growing installations, totaling a worldwide cumulative capacity of 297 GW by end 2016. According to some estimates total investment in renewables for 2011 exceeded investment in carbon-based electricity generation.[99] In the case of self consumption, payback time is calculated based on how much electricity is not brought from the grid. Additionally, using PV solar power to charge DC batteries, as used in Plug-in Hybrid Electric Vehicles and Electric Vehicles, leads to greater efficiencies, but higher costs. Traditionally, DC generated electricity from solar PV must be converted to AC for buildings, at an average 10% loss during the conversion. Inverter technology is rapidly improving and current equipment has reached 99% efficiency for small scale residential,[100] while commercial scale three-phase equipment can reach well above 98% efficiency. However, an additional efficiency loss occurs in the transition back to DC for battery driven devices and vehicles, and using various interest rates and energy price changes were calculated to find present values that range from$2,057.13 to $8,213.64 (analysis from 2009).[101] It is also possible to combine solar PV with other technologies to make hybrid systems, which enable more stand alone systems. The calculation of LCOEs becomes more complex, but can be done by aggregating the costs and the energy produced by each component. As for example, PV and cogen and batteries [102] while reducing energy- and electricity-related greenhouse gas emissions as compared to conventional sources.[103] ### Solar thermal LCOE of solar thermal power with energy storage which can operate round the clock on demand, has fallen to AU$78/MWh (US$61/MWh) in August 2017.[104] Though solar thermal plants with energy storage can work as stand alone systems, combination with solar PV power can deliver further cheaper power.[105] Cheaper and dispatchable solar thermal storage power need not depend on costly or polluting coal/gas/oil/nuclear based power generation for ensuring stable grid operation.[106][107] When a solar thermal storage plant is forced to idle due to lack of sunlight locally during cloudy days, it is possible to consume the cheap excess infirm power from solar PV, wind and hydro power plants (similar to a lesser efficient, huge capacity and low cost battery storage system) by heating the hot molten salt to higher temperature for converting the stored thermal energy in to electricity during the peak demand hours when the electricity sale price is profitable.[108][109] ### Wind power NREL projection: the LCOE of U.S. wind power will decline by 25% from 2012 to 2030.[110] Estimated cost per MWh for wind power in Denmark as of 2012 Current land-based wind In the windy great plains expanse of the central United States new-construction wind power costs in 2017 are compellingly below costs of continued use of existing coal burning plants. Wind power can be contracted via a power purchase agreement at two cents per kilowatt hour while the operating costs for power generation in existing coal-burning plants remain above three cents.[111] Current offshore wind In 2016 the Norwegian Wind Energy Association (NORWEA) estimated the LCoE of a typical Norwegian wind farm at 44 €/MWh, assuming a weighted average cost of capital of 8% and an annual 3,500 full load hours, i.e. a capacity factor of 40%. NORWEA went on to estimate the LCoE of the 1 GW Fosen Vind onshore wind farm which is expected to be operational by 2020 to be as low as 35 €/MWh to 40 €/MWh.[112] In November 2016, Vattenfall won a tender to develop the Kriegers Flak windpark in the Baltic Sea for 49.9 €/MWh,[113] and similar levels were agreed for the Borssele offshore wind farms. As of 2016, this is the lowest projected price for electricity produced using offshore wind. Historic levels In 2004, wind energy cost a fifth of what it did in the 1980s, and some expected that downward trend to continue as larger multi-megawatt turbines were mass-produced.[114] As of 2012 capital costs for wind turbines are substantially lower than 2008–2010 but are still above 2002 levels.[115] A 2011 report from the American Wind Energy Association stated, "Wind's costs have dropped over the past two years, in the range of 5 to 6 cents per kilowatt-hour recently.... about 2 cents cheaper than coal-fired electricity, and more projects were financed through debt arrangements than tax equity structures last year.... winning more mainstream acceptance from Wall Street's banks.... Equipment makers can also deliver products in the same year that they are ordered instead of waiting up to three years as was the case in previous cycles.... 5,600 MW of new installed capacity is under construction in the United States, more than double the number at this point in 2010. 35% of all new power generation built in the United States since 2005 has come from wind, more than new gas and coal plants combined, as power providers are increasingly enticed to wind as a convenient hedge against unpredictable commodity price moves."[116] This cost has additionally reduced as wind turbine technology has improved. There are now longer and lighter wind turbine blades, improvements in turbine performance and increased power generation efficiency. Also, wind project capital and maintenance costs have continued to decline.[117] For example, the wind industry in the USA in 2014 was able to produce more power at lower cost by using taller wind turbines with longer blades, capturing the faster winds at higher elevations. This opened up new opportunities in Indiana, Michigan, and Ohio. The price of power from wind turbines built 300 to 400 ft (91 to 122 m) above the ground can now compete with conventional fossil fuels like coal. Prices have fallen to about 4 cents per kilowatt-hour in some cases and utilities have been increasing the amount of wind energy in their portfolio, saying it is their cheapest option.[118] ## See also ## Further reading ## References 1. ^ A Review of Electricity Unit Cost Estimates Working Paper, December 2006 – Updated May 2007 Archived January 8, 2010, at the Wayback Machine. 2. ^ "Cost of wind, nuclear and gas powered generation in the UK". Claverton-energy.com. Retrieved 2012-09-04. 3. ^ "David Millborrows paper on wind costs". Claverton-energy.com. Retrieved 2012-09-04. 4. ^ Nuclear Energy Agency/International Energy Agency/Organization for Economic Cooperation and Development Projected Costs of Generating Electricity (2005 Update) 5. ^ K. Branker, M. J.M. Pathak, J. M. Pearce, doi:10.1016/j.rser.2011.07.104 A Review of Solar Photovoltaic Levelized Cost of Electricity, Renewable and Sustainable Energy Reviews 15, pp.4470–4482 (2011). Open access 6. ^ a b c d Branker, K.; Pathak, M.J.M.; Pearce, J.M. (2011). "A Review of Solar Photovoltaic Levelized Cost of Electricity". Renewable and Sustainable Energy Reviews. 15 (9): 4470–4482. doi:10.1016/j.rser.2011.07.104. Open access 7. ^ Comparing the Costs of Intermittent and Dispatchable Electricity-Generating Technologies", by Paul Joskow, Massachusetts Institute of Technology, September 2011 8. ^ a b c d Bronski, Peter (29 May 2014). "You Down With LCOE? Maybe You, But Not Me:Leaving behind the limitations of levelized cost of energy for a better energy metric". RMI Outlet. Rocky Mountain Institute (RMI). Archived from the original on 28 October 2016. Retrieved 28 October 2016. Desirable shifts in how we as a nation and as individual consumers—whether a residential home or commercial real estate property—manage, produce, and consume electricity can actually make LCOE numbers look worse, not better. This is particularly true when considering the influence of energy efficiency...If you’re planning a new, big central power plant, you want to get the best value (i.e., lowest LCOE) possible. For the cost of any given power-generating asset, that comes through maximizing the number of kWh it cranks out over its economic lifetime, which runs exactly counter to the highly cost-effective energy efficiency that has been a driving force behind the country’s flat and even declining electricity demand. On the flip side, planning new big, central power plants without taking continued energy efficiency gains (of which there’s no shortage of opportunity—the February 2014 UNEP Finance Initiative report Commercial Real Estate: Unlocking the energy efficiency retrofit investment opportunity identified a$231–$300 billion annual market by 2020) into account risks overestimating the number of kWh we’d need from them and thus lowballing their LCOE... If I’m a homeowner or business considering purchasing rooftop solar outright, do I care more about the per-unit value (LCOE) or my total out of pocket (lifetime system cost)?...The per-unit value is less important than the thing considered as a whole...LCOE, for example, fails to take into account the time of day during which an asset can produce power, where it can be installed on the grid, and its carbon intensity, among many other variables. 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In 2008, coal-fired generation accounted for 40 percent of world electricity supply; in 2035, its share decreases to 37 percent, as renewables, natural gas, and nuclear power all are expected to advance strongly during the projection and displace the need for coal-fired-generation in many parts of the world. World net coal-fired generation grows by 67 percent, from 7.7 trillion kilowatthours in 2008 to 12.9 trillion kilowatthours in 2035." Archived August 22, 2012, at the Wayback Machine. 14. ^ "BBC NEWS – Business – The economic impact of global warming". Retrieved 25 November 2016. 15. ^ O'Loughlin, Toni (27 October 2009). "Climate change threatens Australia's coastal lifestyle, report warns". Retrieved 25 November 2016 – via The Guardian. 16. ^ Tufts Civil Engineer Predicts Boston’s Rising Sea Levels Could Cause Billions Of Dollars In Damage 17. ^ Rising Sea Levels' cost on Boston 18. ^ "Tufts University slide 28, note projected Bangladesh evacuation". 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