The cost of renewable energy is continuing to fall, but it will not be able to fully replace conventional generation in the foreseeable future, according to Lazard's annual reports on the levelised cost of energy and energy storage. In its latest report, released last week, Lazard said that renewables would only account for about a quarter of total electricity demand by 2040. The cost of utility-scale solar and onshore wind fell about 6% from last year, while capital costs for lithium-ion batteries will fall as much as 36% over the next five years.
The cost of renewable energy is continuing to fall, but it will not be able to fully replace conventional generation in the foreseeable future, according to Lazard's annual reports on the levelised cost of energy and energy storage. The analysis shows utility-scale solar costs today can be as low as $43/MWh, and wind generation as low as $30/MWh, whilst gas plant generation starts at $42 per MWh. The cost of utility-scale solar and onshore wind fell about 6% from last year, while capital costs for lithium-ion batteries will fall as much as 36% over the next five years.