Lazard's Levelized Cost of Energy Analysis 2026

This technical report presents Lazard's Levelized Cost of Energy (LCOE) analysis for 2026, including Version 19.0 of the LCOE and Version 11.0 of the Levelized Cost of Storage (LCOS). The report outlines key findings indicating that unsubsidized renewable energy remains the most cost-competitive form of new-build generation, despite rising costs due to higher capital expenses and supply chain issues. The analysis emphasizes the increasing demand for diverse generation sources and the necessity for expedited permitting processes to enhance system reliability. It also discusses the competitive landscape of existing generation, noting that rising costs for new builds have improved the economics of existing assets. Additionally, the report highlights a reversal in the declining costs of utility-scale storage, attributed to tariffs impacting lithium-ion battery imports. The findings underscore the complexities of the energy market and the need for strategic infrastructure investments to meet growing energy demands.