New York-based financial advisory firm Lazard released its 19th Levelized Cost of Energy+ (LCOE) report on July 13, 2026, confirming that wind, solar, and energy storage continue to offer the lowest-cost options for new power generation in the United States. The report also reveals that new gas-fired combined cycle power plants (CCGTs) have reached their highest levelized cost in 15 years, with supply chain constraints and higher capital costs extending project timelines.
Renewables Maintain Cost Leadership Despite Market Pressures
The Lazard analysis indicates that renewables—wind, solar, and storage—are expected to account for the majority of near-term U.S. capacity additions, driven by their shorter deployment cycles compared to conventional power plants. While the report acknowledges rising costs for wind and solar due to higher capital expenses, sustained interest rates, and supply chain repricing, it concludes that these pressures have not diminished their cost advantage over fossil fuels and other generation technologies.
Samuel Scroggins, Lazard’s Managing Director and Head of Renewables & Sustainable Infrastructure, characterized the current energy landscape as a "speed-to-power era," where the ability to deliver capacity quickly determines market value. "Renewables remain the lowest-cost and fastest-to-deploy resource," Scroggins stated, though he emphasized the need for a balanced generation mix to meet growing electricity demand.
The report highlights that even after incorporating firming costs—such as energy storage to mitigate wind and solar intermittency—renewables remain broadly cost-competitive with gas-fired plants. Lazard’s comparison does not apply regional adjustments or offsetting firming charges to CCGTs, which face their own operational risks, including fuel supply disruptions, pipeline constraints, and unplanned outages.
Gas Plants Face Record Costs as Coal Revival Efforts Stumble
Lazard’s findings underscore the financial challenges confronting new gas-fired generation. The report states that new-build CCGTs have reached their highest LCOE in 15 years, with higher-cost projects still in the planning and development phases. Gas turbine supply constraints are pushing development timelines "well beyond historical norms," according to the report, further delaying project completion.
The report also casts doubt on the Trump administration’s efforts to revive coal power. While extending the operational life of existing coal plants may offer short-term cost benefits compared to new construction, Lazard warns of risks tied to commodity market volatility. "Weather, geopolitical events, and broader commodity market conditions" can drive up coal and gas prices, the report notes, whereas wind and solar upgrades are insulated from such fluctuations.
The U.S. has an estimated 161 gigawatts of underutilized wind farm capacity, presenting opportunities for repowering with more efficient turbines. Lazard cites examples where repowering can reduce the number of turbines while maintaining or increasing output, freeing up land for conservation or alternative uses. Solar plants also offer upgrade potential, with companies like Kinematics introducing advanced tracking systems. The firm launched its Kinematics Go! solar tracker at Intersolar Europe in Munich on June 23, 2026, promising to enhance energy output from existing solar installations.
Reliability Claims Clash With Market Realities
The Lazard report challenges assertions by Energy Secretary Chris Wright that conventional power plants are "perfectly reliable." The analysis points to pipeline capacity constraints, fuel supply risks, and outage vulnerabilities as factors undermining the reliability of gas and coal plants. The firm also notes that rising power demand and increasingly sophisticated capacity accreditation methodologies—applied across all generation types, including fossil resources—are adding pressure to the industry.
Independent analysts have identified additional obstacles to the Trump administration’s coal revival plans, including rail freight capacity limitations, modernization challenges, and workforce shortages. While the administration has prioritized extending the life of existing coal plants, Lazard’s report suggests this strategy may prove unsustainable amid evolving market and regulatory conditions.
The 2026 LCOE report arrives as the U.S. energy sector navigates a period of transition. While renewables maintain their cost and deployment advantages, Lazard’s data indicates that gas and coal plants face growing financial and operational hurdles. The report’s release precedes midterm elections that could reshape energy policy, though market forces appear to be accelerating the shift toward wind, solar, and storage.
