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Annual Energy Outlook 2018

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

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2017

Release date: April 20, 2017

This paper presents average values of levelized costs and levelized avoided costs for generating technologies entering service in 2019, 2022,[1], and 2040 as represented in the National Energy Modeling System (NEMS) for the Annual Energy Outlook 2017 (AEO2017) Reference case.[2] The costs for generating technologies entering service in 2022 are presented in the body of the report, with those for 2019 [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] The first year that all technologies are available is 2022, given the long lead time and licensing requirements for some technologies.

[2] AEO2017 reports are available at http://www.eia.gov/outlooks/aeo/index.php.

[3] Appendix A shows levelized cost of electricity values for plants coming online in 2019 for the subset of technologies available to be built in that year.