LETTER from WAYNE MELLOR
What's the cost of zero-carbon energy
I received several thoughtful comments from our readers concerning the last column and would like to address them.
The investment bank Lazard published the most recent Lazard’s “Levelized Cost of Energy and Storage” in late 2020. The comprehensive report includes all the costs of creating and storing a megawatt of power including land, construction, operating and maintenance.
According to the Lazard report, new, unsubsidized utility scale power sources have the following midpoint levelized costs per megawatt hour: solar $34, offshore wind $86, on-shore wind $40, nuclear $164 and combined cycle gas $59.
It is pretty easy to see that money drives political decision-making especially when deciding between new nuclear, wind and solar power. Offshore wind is relatively expensive, but unlike solar, it can occasionally generate base load power. The public is less likely to resist offshore wind, and one of the windiest places in the U.S. is off Long Island.
