The OECD’s “Projected Costs of Generating Electricity” report provides a detailed analysis of the future costs associated with different electricity generation technologies. It examines how factors such as technological advancements, fuel prices, regulatory changes, and market dynamics will influence the cost of producing electricity over the coming decades. This report includes projections for a wide range of generation methods, including traditional fossil fuel plants (coal, natural gas, oil), nuclear power, and renewable energy sources (wind, solar, hydro, etc.).
The findings aim to help policymakers, investors, and energy planners make informed decisions about the energy mix and infrastructure investments needed to meet future energy demands while reducing emissions. The report typically includes cost estimates for both capital expenditures (CAPEX) and operational expenditures (OPEX), as well as levelized costs of electricity (LCOE), which allow for comparisons across different technologies and energy sources.
Additionally, the OECD looks at how subsidies, carbon pricing, and technological innovations might impact the relative costs of these energy sources. By providing long-term projections, it serves as a critical tool for understanding the economic viability of different electricity generation options in the context of global energy transitions and climate goals.