Save for later Print Download Share LinkedIn Twitter Natural gas is the king of cheap power, but renewables are catching up, according to EI New Energy's new report on the cost of electricity generation, known as the levelized cost of energy (LCOE) (related). Gas-fired power plants are cheap to operate, with combined cycle gas turbines' (CCGT) lifetime cost of generation at just under $40 per megawatt hour in the US and $50-$55/MWh in Europe, the Mideast and developing Asia. They also involve the lowest possible investment of any power technology at around $700 per kilowatt of capacity in the US and Europe for the simpler open cycle gas turbines (OCGT) and $1,000/kW for CCGTs. But while the cost of gas turbines is stable, the next cheapest technologies to invest in are utility-scale solar photovoltaic (PV) at $1,435/kW, which is down 70% from 2010, and onshore wind, down 15% and now at $1,700/kW -- with the costs of both continuing to tumble.
