Source: Lazard estimates.
Note: Here and throughout this presentation, unless otherwise indicated, the analysis assumes 60% debt at 8% interest rate and 40% equity at 12% cost. Please see page titled “Levelized Cost of Energy Comparison—Sensitivity to Cost of Capital” for cost of capital sensitivities.
(1) Such observation does not take into account other factors that would also have a potentially significant effect on the results contained herein, but have not been examined in the scope of this analysis. These additional factors, among others, could include: import tariffs; capacity value vs. energy value; stranded costs related to distributed generation or otherwise; network upgrade, transmission, congestion or other integration-related costs; significant permitting or other development costs, unless otherwise noted; and costs of complying with various environmental regulations (e.g., carbon emissions offsets or emissions control systems). This analysis also does not address potential social and environmental externalities, including, for example, the social costs and rate consequences for those who cannot afford distribution generation solutions, as well as the long-term residual and societal consequences of various conventional generation technologies that are difficult to measure (e.g., nuclear waste disposal, airborne pollutants, greenhouse gases, etc.)
(2) Unless otherwise indicated herein, the low end represents a single-axis tracking system and the high end represents a fixed-tiltdesign.
(3) Represents the estimated implied midpoint of the LCOE of offshore wind, assuming a capital cost range of approximately $2.25 –$3.80 per watt.
(4) Unless otherwise indicated, the analysis herein does not reflect decommissioning costs or the potential economic impacts of federal loan guarantees or other subsidies.
(5) Represents the midpoint of the marginal cost of operating fully depreciated coal and nuclear facilities, inclusive of decommissioning costs for nuclear facilities. Analysis assumes that the salvage value for a decommissioned coal plant is equivalent to the decommissioning and site restoration costs. Inputs are derived from a benchmark of operating, fully depreciated coal and nuclear assets across the U.S. Capacity factors, fuel, variable and fixed operating expenses are based on upper and lower quartile estimates derived from Lazard’s research. Please see page titled “Levelized Cost of Energy Comparison—Alternative Energy versus Marginal Cost of Selected Existing Conventional Generation” for additional details.
(6) Unless otherwise indicated, the analysis herein reflects average of Northern Appalachian Upper Ohio River Barge and Pittsburgh Seam Rail coal. High end incorporates 90% carbon capture and compression. Does not include cost of transportation and storage.
Sign up with Google
