Arman Akhunbaev, head of the EDB’s Industry Analysis Center, highlighted key global trends in the energy transition.
Based on the analysis, the most economically advantageous sources of electricity are solar power plants and onshore wind energy, with costs of 3.4 and 4.3 cents per kilowatt-hour, respectively.
However, Akhunbaev noted that the low cost of electricity generated from renewable energy sources (RES) does not always lead to lower end prices for consumers.
“Although solar and onshore wind generation appear quite attractive in terms of their price indicators <...>, it is important to consider that not all costs have been accounted for. These sources lack dispatchability and balancing capability. Natural gas, although more expensive in terms of emissions, offers high flexibility. Nuclear power plants provide low-carbon base generation, but their operation depends on capital costs. Coal, despite its high carbon load, remains a stable source. Thus, there is no universal solution for all countries; however, it is important to correctly form the energy balance,” the analyst explained.
During the presentation, Akhunbaev also mentioned that in the USA, the so-called "leveling cost" is added to the cost of RES, making these sources less competitive compared to traditional generation methods. He emphasized the importance of elements such as batteries, peaking gas power plants, hydropower plants, demand management, and the ancillary services market for a successful energy transition.
| Technology/Fuel | Total Installation Cost (USD/kW) | Specific Cost (cent/kWh) | GHG Emission Factors (gCO2/kWh) | Dispatchability | Balancing Capability |
| Onshore Wind Energy | 1000 | 3.4 | 12 | No | No |
| Solar Energy | 700 | 4.3 | 46 | No | No |
| Offshore Wind Energy | 2800 | 7.9 | 12 | No | No |
| Bioenergy | 3200 | 8.7 | 18 | Yes | Low |
| Geothermal Energy | 4000 | 6 | 45 | Yes | Low |
| Natural Gas | 2400 | 5-11 | 469 | Yes | High |
| Oil (GPP) | 2200 | 7-15 | 840 | Yes | High |
| Coal | 4000 | 7-17 | 1001 | Yes | Low |
| Nuclear Power Plants | 5000 | 8-25 | 16 | Yes | Low |
| Source: | EDB |
