Levelized Cost of Energy+
Lazard's Levelized Cost of Energy+ (LCOE+) is a U.S.-focused annual publication that combines analyses across three distinct reports: Energy (LCOE, 17th edition), Storage, (LCOS, 9th edition) and Hydrogen (LCOH, 4th edition). Lazard first started publishing its comparative analysis of various generation technologies in 2007.
Access the 2024 LCOE+ Report
Lazard’s 2024 LCOE+ report highlights that, as expected, macro pressures, including high interest rates, have raised the lower end of our LCOE for certain renewables. Despite this, and given relatively stable year-over-year averages, renewables continue to be cost-competitive with conventional generation, which will lead to the continued displacement of fossil fuels. Other key takeaways include the need for diverse generation fleets to meet increasing power demands (driven by AI, data center deployment, etc.) and the impact that innovation can and must continue to have on the future of our energy sector.
The results of our 2024 analyses reinforce, yet again, the ongoing need for diversity of energy resources, including fossil fuels, given the intermittent nature of renewable energy and currently commercially available energy storage technologies.
Notwithstanding the important conclusions one can draw from our analyses, the pace of change and deployment across the Energy Transition is influenced by a variety of factors beyond the scope of these studies—all of which make the Energy Transition one of the great opportunities and challenges of this era.