Arman Akhunbaev, head of the EDB's Industry Analysis Center, highlighted the main global trends in the energy transition.
According to his data, onshore wind energy and solar power plants have the lowest specific costs — 3.4 and 4.3 cents per kilowatt-hour, respectively.
However, as Akhunbaev noted, the low price of electricity generated using renewable sources does not always lead to a reduction in the final cost of electricity for consumers.
“Despite the attractiveness of prices for solar and onshore wind generation <...>, not all costs have been accounted for. These technologies lack dispatchability and balancing capability. Gas, although more expensive in terms of emissions, provides greater flexibility. Nuclear power plants offer low-carbon baseload generation, but their capital cost is very sensitive. Coal energy still offers stability, but with a high carbon load. Therefore, there is no universal solution for every country, but it is important to properly shape the energy balance,” the analyst explained.
During the presentation, Akhunbaev noted that in the USA, the cost of electricity from renewable sources includes what is known as "leveling cost," which makes it less competitive compared to traditional generation methods. Additionally, he emphasized the importance of elements such as batteries, gas peaking plants, hydropower stations, demand management, and ancillary services markets for a successful energy transition.
| Technology/Fuel | Total Installation Cost (USD/kW) | Specific Cost (cents/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 | 5000 | 8-25 | 16 | Yes | Low |
| source: | EDB |
