Lazard Inc. released data showing that the levelized cost of energy - the long-term electricity price a power plant must receive to break even - for combined-cycle natural gas plants climbed to $90 per megawatt-hour in 2026. That figure represents an increase from $78 per megawatt-hour the year prior and is the highest level for this metric since 2009, when the company recorded $83 per megawatt-hour.
George Bilicic, global head of power, energy and infrastructure at Lazard Inc., said the upward trajectory is likely to persist as demand increases from new data centers. His remarks point to ongoing pressure on gas-fired generation economics as large-scale computing facilities expand their power consumption.
Renewable technologies did not escape cost pressure in Lazard's data. Solar power's levelized cost rose to $69 per megawatt-hour, while onshore wind reached $68 per megawatt-hour. Both numbers represent increases of more than 10% from the previous year and are the highest reported for those technologies since at least 2014, according to the firm.
Lazard's assessment links the rising cost of generation to observable increases in household utility bills in some regions of the United States. The firm also highlighted the political salience of electricity prices, noting that high costs have become a notable issue for voters ahead of the midterm elections scheduled for November.
The data from Lazard frames a near-term picture in which multiple generation sources are facing higher levelized costs simultaneously - fossil-fuelled combined-cycle gas plants and key renewable technologies alike. Lazard's LCOE figures are presented as break-even thresholds, providing a uniform measure for comparing long-term generation economics across technologies.
While Lazard's data points to broad upward pressure on generation costs, the firm specifically called out demand from new data centers as a driver that could sustain rising costs for gas-fired power. The report's findings also connect these cost changes to the consumer experience and the political environment, with utility bills and voter concern cited explicitly.
Data reported by Lazard Inc.:
- Combined-cycle natural gas LCOE: $90 per MWh in 2026, up from $78 the prior year; highest since 2009 ($83 per MWh).
- Solar LCOE: $69 per MWh in 2026; more than 10% increase from the prior year; highest since at least 2014.
- Onshore wind LCOE: $68 per MWh in 2026; more than 10% increase from the prior year; highest since at least 2014.