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Annual Energy Outlook 2018

Full Release Date: February 6, 2018   |  Next Release Date:  January 2019   |  full report

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2018

Release date: March 27, 2018

This paper presents average values of levelized costs and levelized avoided costs for generating technologies entering service in 2020, 2022,[1], and 2040 as represented in the National Energy Modeling System (NEMS) for the Annual Energy Outlook 2018 (AEO2018) Reference case.[2] The costs for generating technologies entering service in 2022 are presented in the body of the report, with those for 2020 [3] and 2040 included in Appendices A and B, respectively. Both a capacity-weighted average based on projected capacity additions across the 22 U.S. regions of the NEMS electricity market module (EMM) and a simple average of the regional values are provided, together with the range of regional values.


[1] Given the long lead-time and licensing requirements for some technologies, the first feasible year that all technologies are available is 2022.

[2] AEO2018 reports are available at http://www.eia.gov/outlooks/aeo/.

[3] Appendix A shows levelized cost of electricity values for plants coming online in 2020 for the subset of technologies available to be built in that year.