Tag Archives: Energy

Weekend Long Reads: What’s the Cheapest Form of Energy?

by Kevin Schofield


This week’s “long read” is light on words and heavy on charts and graphs. It’s a comparison of the cost to generate electricity from a number of different sources, both clean and dirty.

The business and finance consultant company Lazard has compiled an analysis of the “levelized cost of energy” every year since 2007. By “levelized,” they mean that they factor in all of the costs: capital costs to build out electricity generation facilities, including the materials, manufacturing, construction, installation, permitting, and property; ongoing operational and maintenance costs; fuel costs for the types of generation that require fuel; and regulatory costs. They calculate the expected operational lifetime of a power generation facility and then divide the sum of the costs by the total expected power generation over a facility’s lifetime to arrive at a cost per megawatt-hour.

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