MIT’s estimate of about $73/MWh for renewable+transmission is low. It appropriately estimates amortization costs, but purchasing from a transmission operator will always come with a markup. Not much (utilities don’t usually behave like corporations), but enough to be significant.
MIT’s price for renewable+storage at $135/MWh seems high, too. Lazard calculates LCOE for wind+storage at $42-114/MWh and for solar+storage at $46-102/MWh.
I’m still a big fan of HV transmission, as it enables renewable generation to take advantage of cheap land and/or terrain advantages (high wind speed in the Midwest, concentrated solar in the South, geothermal in the West). But I think we’ll still see a lot of local utilities just get batteries and call it a day.
MIT’s estimate of about $73/MWh for renewable+transmission is low. It appropriately estimates amortization costs, but purchasing from a transmission operator will always come with a markup. Not much (utilities don’t usually behave like corporations), but enough to be significant.
MIT’s price for renewable+storage at $135/MWh seems high, too. Lazard calculates LCOE for wind+storage at $42-114/MWh and for solar+storage at $46-102/MWh.
I’m still a big fan of HV transmission, as it enables renewable generation to take advantage of cheap land and/or terrain advantages (high wind speed in the Midwest, concentrated solar in the South, geothermal in the West). But I think we’ll still see a lot of local utilities just get batteries and call it a day.