levelised cost of electricity

The levelised cost of electricity (LCOE) for a number of clean power industries will fall by between 2-11% year-on-year by the end of 2025.

The average global LCOE for fixed-axis solar PV systems in 2024 reached US$66/MWh, ranging from US$28/MWh to US$117/MWh.

The global weighted average LCOE of utility-scale PV plants fell to US$0.044/kWh in 2023, a 12% year-on-year decline from 2022.

Ground-mounted PV is Germany's most cost-effective power generation technology, according to Fraunhofer ISE.

US analyst Lazard notes that renewable energy technologies continue to have some of the lowest LCOE figures in the US.

An IRENA report into the cost of producing power has found that the levelised cost of electricity in the solar PV sector fell by 3% in 2022.

New research has revealed that solar PV and wind continue to be the cheapest new-build electricity generation options in Australia, even when considering their additional integration costs such as energy storage and transmission. 

Earlier this week the US National Renewable Energy Laboratory (NREL) published its 2021 Annual Technology Baseline (ATB) document, detailing the continued reduction in the levelised cost of electricity (LCOE) of the country’s core generators. Liam Stoker takes a look at the data and discusses just how cheap solar, and solar-storage, could become.