Lazard says renewables remain lowest-cost new-build power generation in 2026 LCOE+ report
LAZ•Renewables remain the lowest-cost new-build option
Lazard’s 2026 Levelized Cost of Energy+ report keeps renewables as the lowest-cost option for unsubsidized new-build generation despite inflationary pressures.
Surging power-demand forecasts are driving more planned gas builds even as gas LCOE hits a 15-year high with further increases expected.
Higher build costs and storage changes reshape economics
Rising new-build costs are lifting the relative economics of existing generation, boosting dispatch rates while leaving margins sensitive to gas and coal prices.
Standalone battery storage costs rose, reversing prior declines, as tariffs on lithium-ion imports reduced access to low-cost Chinese cells.
The report flags permitting delays as a key constraint, raising costs and reliability risks while strengthening the case for a diverse generation mix.
