Forecast of estimated LCOE generation by energy source 2023

Solar thermal energy generation is predicted to have one of the highest levelized capital cost of generation in the United States in 2023, at approximately 157.1 U.S. dollars per megawatt hour. Offshore wind power, which is still a relatively new technology in comparison to onshore wind, is estimated to have the levelized capital costs totaling 130.4 U.S. dollars per megawatt hour.

What are levelized capital costs?

The levelized cost of energy (or LCOE) is a comparative indication for the financial viability of different forms of energy over a system’s lifetime. Capital costs are the one-time expenses of acquiring the land, space, and construction resources to start a project, whereas running costs consider the maintenance of the energy system in operation. Among clean energy technologies, solar generation has experienced a greater increase than wind energy in the past decade, likely due to lower start-up costs.

Harvesting wind from the sea

Despite the higher capital costs of building wind turbines in bodies of water, high economic potential for fixed-bottom and floating offshore wind technologies is nevertheless predicted in the coasts off New England, especially in Maine and Massachusetts. Overall, levelized wholesale wind power prices in the United States have been decreasing since around the 2008 Recession, when investment in clean energy technologies increased.