Lazard’s 2025 LCOE+ report captures a critical tension in today’s energy transition: renewables are still the cheapest source of new generation, but keeping the grid reliable is getting more expensive. (Lazard)
Solar and wind remain the most cost-competitive technologies on an unsubsidized basis, but firming costs are rising sharply, especially in markets like PJM and CAISO, which are slashing capacity credit.
Utility-scale battery prices are falling thanks to soft EV demand and new cell tech, but geopolitical uncertainty and tariff-driven supply chain shifts are creating volatility just as storage demand expands beyond ISO markets.
Gas hangs on: While new-build CCGTs are about to get pricier due to turbine constraints, existing gas plants are still cheap to run, keeping them in play as renewables scale and firming needs grow.