Lazard Inc. has recently released its 19th edition of the Levelized Cost of Energy+ (LCOE+) report for 2026.

The report states that, despite facing pressures from inflation, tariffs, and supply chains, which have driven up costs for nearly all power generation technologies, renewable energy remains the most cost-competitive option for new, unsubsidized power generation and is expected to constitute the majority of new power capacity additions in the United States in the near term.

The report shows the levelized cost of utility-scale solar photovoltaic power to be approximately $40 to $98 per MWh, and onshore wind power approximately $37 to $99 per MWh, both at the lower end of the cost spectrum.

In comparison, the cost for natural gas combined cycle generation is about $51 to $129 per MWh, while new nuclear power is significantly higher at $175 to $255 per MWh.

Against the backdrop of unprecedented growth in electricity demand driven by data centers, artificial intelligence, and industrial electrification, objective cost benchmarking analysis is more critical than ever.

Key Report Findings

The first key finding is that the combination of unprecedented electricity demand growth and rising costs across all technologies reinforces the necessity for a diversified generation portfolio and enhances the competitiveness of existing power assets.

The increased cost of building new capacity makes replacing existing capacity more expensive and challenging to deliver, leading to more frequent dispatch of existing power plants, which spreads fixed costs and improves per-unit economics.

Second Major Insight

The second finding is that battery storage costs have increased this year, reversing last year's declining trend.

The report attributes this primarily to the impact of lithium-ion battery import tariffs and related restrictions, factors that are accelerating the diversification of the battery supply chain.

The report concludes that the industry has entered an era of "speed-to-power," where value is shifting towards technologies that can deliver capacity the fastest.

While renewable energy remains the lowest-cost and fastest-deployable resource, meeting the demands of this moment requires a diversified generation mix.