Renewables: Cheapest form of power
https://www.un.org/en/climatechange/renewables-cheapest-form-power
The cheapest sources of electricity generation are:
- Geothermal - Using natural steam or hot water from underground reservoirs has very low fuel costs, making geothermal one of the cheapest electricity sources. However, it requires specific geology so is limited in locations. The LCOE (levelized cost of electricity) ranges from $20-50 per MWh.
- Hydroelectric - After a dam is built, the fuel (flowing water) is free. Operation and maintenance costs are low compared to other technologies. Hydro LCOE can be as cheap as $20-40 per MWh at good sites.
- Wind - Once installed, the fuel (wind) is free and maintenance costs are relatively low. Larger turbines in ideal windy locations can achieve LCOE of $30-60 per MWh.
- Natural Gas - Burning natural gas in combined cycle power plants is cost effective due to low fuel costs. CCGT LCOE is around $40-70 per MWh.
- Coal - Despite its high emissions, coal continues to provide cheap electricity in many regions, with LCOE of $60-100 per MWh.
- Solar PV - Solar panel costs have declined dramatically. Utility-scale solar in sunny areas can attain LCOE of $40-70 per MWh.
More expensive sources of electricity include oil/diesel generators, biomass power, nuclear energy, and building renewables like solar or wind in suboptimal locations. So in summary, hydro, geothermal, wind and natural gas tend to be the cheapest options for grid power generation with current technology.