Cheaper Renewable Power May Drive Economic Recovery, Lazard Says

Wind and solar power have become even cheaper compared to fossil fuels in the past year, making them an attractive way to stimulate economies recovering from the Covid-19 pandemic, according to Lazard Ltd.

Without subsidies, the cost of energy from onshore wind has fallen to as low as $26 a megawatt-hour while utility-scale solar is as cheap as $29, according to the New York firm’s annual levelized cost of energy analysis released Monday. That undercuts even the most efficient type of new gas-fired turbines. The declines have been so significant for renewables that they’re becoming competitive against, or cheaper than, existing gas plants. The gap becomes even wider when considering tax credits.