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Ranked: America’s Cheapest Sources of Electricity in 2024

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The following content is sponsored by the National Public Utilities Council

America’s Cheapest Sources of Electricity in 2024

In the evolving global energy landscape, renewable sources are becoming increasingly cost effective. Even without subsidies, renewables are often the cheapest option available.

This chart, created in partnership with the National Public Utilities Council, shows which electricity sources are the most and least expensive in 2024, using data by Lazard.

Onshore Wind and Solar: A Bargain with Subsidies

Onshore wind power effectively costs $0 per megawatt-hour (MWh) when subsidies included in the Inflation Reduction Act, such as the Investment Tax Credit, Production Tax Credit, and Energy Community Adder, are applied.

Demand for storage solutions is rising quickly. If storage is included, the minimum cost for onshore wind increases to $8 per MWh. Offshore wind, while more expensive, still presents a competitive option at a minimum of $71 per MWh with subsidies.

TechnologyMinimum With SubsidiesMinimum Without SubsidiesMaximum
Onshore Wind$0$27$73
Onshore Wind + Storage$8$45$133
Offshore Wind$71$74$139
Solar PV$6$29$92
Solar PV + Storage$38$60$210
Geothermal*$43$64$106

*2020 LCOE adjusted for inflation

Solar photovoltaics (PV) have similarly attractive economics.

With subsidies, the minimum cost is $6 per MWh. When including storage, $38 per MWh. Notably, the maximum cost of solar PV with storage has significantly increased from $102 in 2023 to $210 in 2024, although the cost of solar alone is still 83% cheaper in 2024 than it was in 2009, according to Lazard.

The inflation of 2022–2023 took a toll on solar PV and onshore wind, pushing their maximum unsubsidized costs back up to where they were in 2013 and 2015, respectively. However, solar PV dropped by $4 and onshore wind by $2 from 2023–2024.

Fossil Fuels

For gas-combined cycle plants, which combine natural gas and steam turbines for efficient electricity generation, the maximum price has climbed $7 year-over-year to $108 per MWh.

TechnologyMinimum With SubsidiesMinimum Without SubsidiesMaximum
Gas Combined Cyclen/a$45$108
Coal*n/a$69$168
Gas Peakingn/a$110$228

*2020 LCOE adjusted for inflation

Gas peaking plants, used to meet peak electricity demands, remain the most expensive option with a maximum cost of $228 per MWh. Interestingly, the minimum price for these plants has seen a slight dip from $115 to $110 per MWh compared to last year.

The Strange Case of Nuclear Energy

Nuclear energy presents a unique cost structure with the highest minimum cost among all energy sources at $142 per MWh.

However, the economics improve significantly with lifetime extensions of nuclear plants. These extensions reduce the minimum marginal cost of nuclear electricity to $32 per MWh, a cost reduction that 95% of U.S. nuclear plants benefit from.

The cost dynamics of energy production are shifting towards renewables, driven by market forces, technological advancements, and government subsidies, according to Lazard. As renewables become cheaper, they are poised to play a dominant role in the future energy mix, providing both economic and environmental benefits.

Learn how the National Public Utilities Council is working toward the future of sustainable electricity.

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Visualized: Offshore Wind Installations by Region (2023–2033)

This streamgraph shows projected offshore wind capacity by region according to The Global Wind Energy Council.

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The preview image for a streamgraph showing projected offshore wind capacity by region according to The Global Wind Energy Council.

Visualized: Offshore Wind Installations by Region (2023–2033)

In order to meet the 1.5°C trajectory outlined in the Paris Agreement, the world will need 380 GW of offshore cumulative wind capacity by 2030, expanding to 2,000 GW by 2050. But can it be achieved?

The Global Wind Energy Council (GWEC) projects the upcoming offshore wind installations for each region in their Global Offshore Wind Report 2024.

This streamgraph, created in partnership with the National Public Utilities Council, shows the offshore wind installations of each region from 2023–2033, as projected by GWEC.

The Future Projections

The GWEC says that annual offshore wind installations will move from 10.9 GW in 2023 to 66.0 GW by 2033. The growth will elevate offshore wind’s share of new wind power installations from today’s 9% to at least 25%.

In 2033, Europe and China are expected to lead, with 43% and 30% of global installations, respectively. The U.S., despite its ambitious goals, will contribute just 8% of new capacity in the same year.

Here is a regional breakdown of projected future offshore wind installations in GW.

YearEuropeChinaAsia PacificNorth AmericaOther
20233.86.30.8--
20243.7121.10.9-
20255.6151.71-
20268.8152.92.6-
20279.4153.12.6-
202810155.42.4-
202917.2165.82.6-
203022.7167.13.10.4
203127.9188.54.51
203228.21895.51
203328.22010.561.5

Asia Pacific excludes China, Installation estimates in GW

California leads the U.S. efforts, targeting 25.0 GW in cumulative installations by 2045, followed by New Jersey at 11.0 GW. Despite its smaller population, Maryland aims to nearly match New York’s 9.0 GW with a target of 8.5 GW.

The U.S. has already taken strides, bringing online its first utility-scale project, Vineyard Wind 1, which added 0.8 GW to the grid.

With over 25 GW in various stages of development, the Biden administration’s goal is 30 GW by 2030, and has aspirations for 110 GW by 2050. The Inflation Reduction Act, passed under the same administration, previously allocated $392.5 billion in clean energy and climate spending.

The Economic Benefits of Offshore Wind

The American Clean Power Association (ACP) projects that the high scenario of an installation rate of 3 GW per year, with 60% domestic content, could generate $25.0 billion annually and support over 83,000 jobs by 2030.

Recent area lease auctions, such as those in the New York Bight and Carolina Long Bay, have fetched record-breaking bids totalling over $4.3 billion.

Decarbonization requires sustained effort, but with strategic investments and a commitment to innovation, offshore wind could be the wind beneath the wings of a sustainable energy future.

Learn how the National Public Utilities Council is working toward the future of sustainable electricity.

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Ranked: The Largest Power Outages in the U.S. (2013–2023)

Severe weather caused all ten of the largest U.S. power outages in the past decade, highlighting the importance of grid resiliency.

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the preview image for a polar bar chart that ranks the top ten power outages in the U.S. between 2013 and 2023, ordered by the number of customers affected.

Ranked: The Largest Power Outages in the U.S. (2013–2023)

Power outages—whether due to operational failures, extreme weather, vandalism, or fuel shortages—can have far-reaching impacts on both customers and utility companies.

Created in partnership with The National Public Utilities Council, this graphic shows the 10 largest power outages in the U.S. from the last decade, using data from the U.S. Department of Energy (DOE). 

A Decade Of Power Disruptions In Review

The U.S. DOE defines a power outage as an event in which electric service is lost to more than 50,000 customers for one hour or more. 

Between 2013 and 2023, all 10 of the largest U.S. outages—ranked by the number of customers affected—have been due to severe weather events. Hurricanes and winter storms, specifically, have caused eight of the 10 outages. 

YearNumber of Customers AffectedEventArea Affected
20173,500,000Hurricane IrmaFlorida
20212,000,000Winter stormTexas
20181,458,000Hurricane FlorenceNorth & South Carolina
20161,200,000Hurricane MatthewFlorida
20201,188,000Tropical Storm IsaiasNew England
20171,077,000Hurricane HarveyTexas
2019972,000WildfiresCalifornia
2013881,000Winter stormTexas
2023730,000Winter stormNew England
2014715,000Winter stormPennsylvania

Hurricane Irma tops this list by leaving 3.5 million Floridians without power in 2017. Irma was a Category 5 hurricane that impacted the Southeastern state and several island nations, leading to more than $50 billion in damages in Florida alone.

While Florida experienced the largest outage between 2013 and 2023, Texas has the most events in the top 10 list. These were caused by a winter storm in 2021, Hurricane Harvey in 2017, and another winter storm in 2013. 

Investing in a Resilient Grid

The causes of the U.S.’s largest outage events highlight the vulnerability of its transmission infrastructure to extreme weather. 

As of 2023, 70% of U.S. transmission lines were over 25 years old. This makes them more susceptible to power outages, cyber-attacks, and sparking wildfires. 

It is also relevant to note that extreme weather events are increasing in both frequency and intensity due to climate change. Addressing infrastructure vulnerability, therefore, may be a critical aspect of maintaining reliable power in the decades to come. 

Learn how the National Public Utilities Council is working toward the future of sustainable electricity.

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