Electricity systems are becoming increasingly low-carbon and diverse, but generation costs are also rising, according to a new analysis by the Nuclear Energy Agency (NEA) and Electric Power Research Institute (EPRI).

The report, The Costs of Generating Electricity 2025, provides internationally comparable data on the levelised cost of electricity (LCOE) across 21 NEA member countries and 23 technologies. It finds that electricity generation now costs $100 per MWh or more in most countries, particularly for low-carbon technologies.

Long-term operation of existing nuclear plants, hydropower, and onshore wind and solar photovoltaic technologies, when system costs are excluded, remain among the options below that level.

The analysis combines EPRI’s engineering-based cost database with NEA expertise on electricity system costs.

It highlights that plant-level generation costs do not capture wider factors such as reliability, flexibility, network requirements and integration costs.

“There is no single technology that can meet every country's energy needs in every circumstance,” said William Magwood, IV, NEA Director-General. “Countries will need to make policy and investment choices that reflect their own priorities, resources and electricity systems. The data and analysis in this report can support those decisions.”

“As energy systems evolve, understanding the costs, performance characteristics and system implications of different technologies is important for informed planning,” said Steve Chengelis, EPRI Vice President, Energy Supply Nuclear Development and Fusion. “This report provides transparent, internationally comparable data and analysis to help policymakers, utilities, developers and other stakeholders evaluate options and support informed energy planning and investment decisions.”

The report also identifies growing interest in technologies including geothermal, biomass, battery storage, hydrogen-fired gas turbines and fossil-fuel plants equipped with carbon capture, utilisation and storage (CCUS), reflecting the challenge of balancing affordability, energy security, reliability and emissions reduction.

Nuclear power remains a focus, with the analysis covering large-scale reactors, small modular reactors and long-term operation of existing plants.

It finds that first-of-a-kind projects can face higher costs due to supply-chain constraints, workforce shortages and limited recent construction experience, while costs can decline as standardised designs are deployed repeatedly.

Renewables remain competitive at plant level.

Utility-scale onshore wind and solar PV continue to record attractive costs in many countries, although the report found no significant additional cost reductions compared with previous analysis.

Offshore wind remains relatively expensive, while geothermal can provide competitive, dispatchable low-carbon electricity where suitable resources exist.

The report stresses that technologies should be assessed within the wider electricity system rather than through LCOE alone.

It points to combinations of nuclear and renewables, supported by battery storage, hydropower, gas generation, potentially with CCUS or hydrogen, demand response and electricity interconnections, as possible components of resilient and cost-effective systems.

The optimal technology mix, however, varies according to each country’s resources, infrastructure, energy security requirements and electricity system characteristics. -OGN/TradeArabia News Service