The document summarizes key findings from a new energy cost report by EI New Energy that analyzes the cost of generating electricity from different sources across various world regions. Some of the main points include: - Solar power is now cost competitive with oil and gas in the Middle East and nearing parity globally as PV costs have dropped 56% since 2008. - In many regions, the break-even price for solar and wind is below prevailing oil, gas, and coal prices, suggesting these alternatives are more economical for new power generation. - Gas-fired power is the cheapest option for new builds in the US while coal remains competitive in some Asian countries like China and India. - Japan has the highest costs

1. The Energy Cost Report
In an exclusive new data set, EI New Energy
develops its proprietary cost of energy data
into regional sets covering the Mideast, Asia,
the US and Western Europe, and calculates
the break-even points for oil, gas and coal.
Solar power is a viable challenger
to oil and gas in the Mideast...
...and getting close to retail
parity around the world.
PV capacity costs are down
56% from 2008
($/kW)
6,000
$5,650/kW
5,000
4,000
3,000
2,000
$2,469/kW
1,000
0
2008
2009
2010
Europe
177.5
US
138.3
2011
2012
2013
Dvlpg.
Asia Mideast
Japan
318.1
120.0 122.6
Regional Large Solar PV Power
Generation Costs ($/MWh)
Mideast: Oil
Break-Even Prices
Should a Mideast
producer export oil
or burn it for power?
($/bbl)
120
If the vertical bar is below the
crude oil price (horizontal line),
it’s more economic to use an
alternative technology and
export the oil.
80
40
Solar CSP
Biomass
Wind Offshore
Large Hydro
Nuclear
Geothermal
Large Solar PV
Wind Onshore
0
Mideast: Gas
Break-Even Prices
($/MMBtu)
25
20
15
10
Should a Mideast
country use natural gas
or alternative technologies
for power generation?
5
Solar CSP
Biomass
Wind Offshore
Large Hydro
Large Solar PV
Nuclear
If the vertical bar is below the
gas price (horizontal line), it’s
more economic to use the
alternative technology.
Geothermal
Wind Onshore
0
Japan is the most expensive place
in the world to produce electricity
Regional Newbuild
Power Generation Costs ($/MWh):
Dvlpg.
Asia Mideast
US
Europe
Japan
Wind Onshore
74.8
87.5
134.2
67.9
76.6
Gas OCGT
94.0
159.8
221.0
182.4
191.0
Large Solar PV
138.3
177.5
318.1
120.0
122.6
Onshore wind is now cheaper
than coal and gas in Europe...
...but
INDIA PAN
coal China JA Indonesia
remains
in some
a
Asian
countries
champion
Developing Asia: Coal Break-Even Prices
Should some Asian countries use
coal or alternative technologies
for power generation?
16
12
8
4
Solar CSP
Wind Offshore
Biomass
Geothermal
Large Solar PV
Nuclear
Wind Onshore
Large Hydro
0
If the vertical bar is below the coal price
(horizontal line), it's more economic
to use the alternative technology.
US gas-fired power
is the cheapest
of all electricity
generating
technologies
worldwide.
Overview:
Regional
Newbuild
Power Generation Costs
($/MWh)
Gas CCGT
Large Hydro
Wind Onshore
Coal
Geothermal
Gas OCGT
Nuclear
Large Solar PV
Coal with CCS
Biomass
Wind Offshore
Solar CSP
Wave-Tidal
US
48.0
65.7
74.8
75.6
78.2
94.0
98.1
138.3
147.0
149.0
177.7
222.6
288.3
Europe Japan
Dvlpg.
Asia Mideast
92.4
64.7
87.5
89.1
78.2
159.8
98.1
177.5
159.0
149.0
176.8
226.9
288.3
108.8
41.0
67.9
59.5
68.7
182.4
59.1
120.0
118.7
117.1
157.3
171.0
294.2
135.5
163.1
134.2
99.9
82.7
221.0
88.3
318.1
179.3
147.5
182.8
NA
276.1
113.8
102.5
76.6
72.4
74.4
191.0
80.6
122.6
135.8
136.6
141.2
185.3
285.1
Dvlpg. Asia = developing Asia, mostly China and India
Should the Mideast use its
oil and gas more efficiently,
or should it deploy solar power
at home, and export more
to market?
How do the economics stack up?
$
€
¥
£
Uploaded weekly, the data measures both the
investment cost of installing power capacity,
in dollars per kilowatt, and the lifetime cost
of generating electricity, in dollars per
megawatt hour.
To get the full picture download
the Energy Cost Report from
EI New Energy now at
www.energyintel.com/newenergycosts
@energyintel
©2014 Energy Intelligence