Electric generation levelized costs

The levelized cost of electric generation is a measure of the average net present value cost of generating a MWh of electricity for a generating plant over its lifetime. The measure is often used to compare the economics of various generation alternatives. The calculation is based on the unit’s initial capital costs, fuel costs, ongoing operations and maintenance (O&M) costs, debt costs, and the unit’s capacity factor.  

As of 2019, median unsubsidized levelized costs for newly constructed generation types were as follows:

Source: Lazard’s Levelized Cost of Energy Analysis, Version 13.0

Up next …

• Electric generation capital costs

• Electric generation variable costs