U.S. Energy Information Administration | Cost and Performance Characteristics of New Generating Technologies 1

March 2023

Cost and Performance Characteristics of New Generating 

Technologies, Annual Energy Outlook 2023

These tables are also published in the Electricity Market Module chapter in our Annual Energy Outlook 

2023 (AEO2023) Assumptions document. Table 1 includes our estimates of development and installation 

costs for various generating technologies used in the electric power sector. Typical generating 

technologies for end-use applications, such as combined heat and power or roof-top solar photovoltaics 

(PV), are described elsewhere in the Assumptions document. The costs in Table 1, except as noted 

below, are the costs for a typical facility for each generating technology before adjusting for regional 

cost factors. Overnight costs exclude interest accrued during plant construction and 

development. Technologies with limited commercial experience might include a technological optimism

factor to account for the tendency to underestimate the full engineering and development costs for new 

technologies during technology research and development.

All technologies demonstrate some degree of cost variability, based on project size, location, and access 

to key infrastructure (such as grid interconnections, fuel supply, and transportation). For wind and solar 

PV, in particular, the cost favorability of the lowest-cost regions compound the underlying variability in 

regional cost and create a significant difference between the unadjusted costs and the capacityweighted average national costs, as observed from recent market experience. To reflect this difference, 

we report a weighted average cost for both wind and solar PV, based on the regional cost factors 

assumed for these technologies in AEO2023 and the actual regional distribution of the builds that 

occurred in 2021 (Table 1). 

Table 2 shows a full listing of the overnight costs for each technology and electricity region, if the 

resource or technology is available to be built in the given region. The regional costs reflect the impact 

of locality adjustments, including one to address ambient air conditions for technologies that include a 

combustion turbine and one to adjust for additional costs associated with accessing remote wind 

resources. Temperature, humidity, and air pressure can affect the available capacity of a combustion 

turbine, and our modeling addresses these possible effects through an additional cost multiplier by 

region. Unlike most other generation technologies where fuel can be transported to the plant, wind 

generators must be located in areas with the best wind resources. Sites that are located near existing 

transmission with access to a road network or are located on lower development-cost lands are 

generally built up first, after which additional costs may be incurred to access sites with less favorable 

characteristics. We represent this trend through a multiplier applied to the wind plant capital costs that 

increases as the best sites in a region are developed.
U.S. Energy Information Administration | Cost and Performance Characteristics of New Generating Technologies 2 

Table 1. Cost and performance characteristics of new central station electricity generating technologies

Technology

First 

available 

yeara

Size 

(MW)

Lead 

time 

(years)

Base 

overnight 

costb 

(2022$/ 

kW)

Technological 

optimism 

factorc

Total 

overnight 

costd,e 

(2022$/kW)

Variable 

O&Mf

(2022$/ 

MWh)

Fixed O&M 

(2022$/ 

kWy)

Heat rateg

(Btu/kWh)

Ultra-supercritical coal (USC) 2026 650 4 $4,507 1.00 $4,507 $5.06 $45.68 8,638

USC with 30% carbon capture and 

sequestration (CCS)

2026 650 4 $5,577 1.01 $5,633 $7.97 $61.11 9,751

USC with 90% CCS 2026 650 4 $7,176 1.02 $7,319 $12.35 $67.02 12,507

Combined-cycle—single-shaft 2025 418 3 $1,330 1.00 $1,330 $2.87 $15.87 6,431

Combined-cycle—multi-shaft 2025 1,083 3 $1,176 1.00 $1,176 $2.10 $13.73 6,370

Combined-cycle with 90% CCS 2025 377 3 $3,019 1.04 $3,140 $6.57 $31.06 7,124

Internal combustion engine 2024 21 2 $2,240 1.00 $2,240 $6.40 $39.57 8,295

Combustion turbine—

aeroderivativeh

2024 105 2 $1,428 1.00 $1,428 $5.29 $18.35 9,124

Combustion turbine—industrial 

frame

2024 237 2 $867 1.00 $867 $5.06 $7.88 9,905

Fuel cells 2025 10 3 $6,771 1.08 $7,291 $0.66 $34.65 6,469

Nuclear—light water reactor 2028 2,156 6 $7,406 1.05 $7,777 $2.67 $136.91 10,447

Nuclear—small modular reactor 2028 600 6 $7,590 1.10 $8,349 $3.38 $106.92 10,447

Distributed generation—base 2025 2 3 $1,915 1.00 $1,915 $9.69 $21.79 8,912

Distributed generation—peak 2024 1 2 $2,300 1.00 $2,300 $9.69 $21.79 9,894

Battery storage 2023 50 1 $1,270 1.00 $1,270 $0.00 $45.76 NA

Biomass 2026 50 4 $4,996 1.00 $4,998 $5.44 $141.50 13,500

Geothermali, j 2026 50 4 $3,403 1.00 $3,403 $1.31 $153.98 8,881

Conventional hydropowerj 2026 100 4 $3,421 1.00 $3,421 $1.57 $47.06 NA

Winde 2025 200 3 $2,098 1.00 $2,098 $0.00 $29.64 NA

Wind offshorei 2026 400 4 $5,338 1.25 $6,672 $0.00 $123.81 NA

Solar thermali 2025 115 3 $8,732 1.00 $8,732 $0.00 $96.10 NA

Solar photovoltaic (PV) with 

trackinge, i, k

2024 150 2 $1,448 1.00 $1,448 $0.00 $17.16 NA

Solar PV with storagei, k 2024 150 2 $1,808 1.00 $1,808 $0.00 $32.42 NA

Data source: Sargent & Lundy, Cost and Performance Estimates for New Utility-Scale Electric Power Generating Technologies, December 2019; 

Hydroelectric: Oak Ridge National Lab, An Assessment of Energy Potential at Non-Powered Dams in the United States, 2012, and Idaho National 

Engineering and Environmental Laboratory, Estimation of Economic Parameters of U.S. Hydropower Resources, 2003; Geothermal: National Renewable 

Energy Laboratory, Updated U.S. Geothermal Supply Curve, 2010. 

Note: MW=megawatt, kW=kilowatt, MWh=megawatthour, kWy=kilowattyear, kWh=kilowatthour; Btu=British thermal unit

a The first year that a new unit could become operational.

b Base cost includes project contingency costs.
U.S. Energy Information Administration | Cost and Performance Characteristics of New Generating Technologies 3

c We apply the technological optimism factor to the first four units of a new, unproven design; it reflects the demonstrated tendency to underestimate 

actual costs for a first-of-a-kind unit. d Overnight capital cost includes contingency factors and excludes regional multipliers (except as noted for wind and solar PV) and learning effects. 

Interest charges are also excluded. The capital costs represent current costs for plants that would come online in 2023. e Total overnight cost for wind and solar PV technologies in the table are the average input value across all 25 electricity market regions, as weighted by 

the respective capacity of that type installed during 2021 in each region to account for the substantial regional variation in wind and solar costs (Table 2). 

The input value used for onshore wind in AEO2023 was $1,566 per kilowatt (kW), and for solar PV with tracking, it was $1,443/kW, which represents the 

cost of building a plant excluding regional factors. Region-specific factors contributing to the substantial regional variation in cost include differences in 

typical project size across regions, accessibility of resources, and variation in labor and other construction costs throughout the country. f O&M=operations and maintenance

g The nuclear average heat rate is the weighted average tested heat rate for nuclear units as reported on the Form EIA-860, Annual Electric Generator 

Report. No heat rate is reported for battery storage because it is not a primary conversion technology; conversion losses are accounted for when the 

electricity is first generated, and electricity-to-storage losses are accounted for through the additional demand for electricity required to meet load. For 

hydropower, wind, solar, and geothermal technologies, no heat rate is reported because the power is generated without fuel combustion, and no set 

British thermal unit conversion factors exist. The module calculates the average heat rate for fossil-fuel generation in each year to report primary energy 

consumption displaced for these resources.

h Combustion turbine aeroderivative units can be built by the module before 2024, if necessary, to meet a region's reserve margin. i Capital costs are shown before investment tax credits are applied.

j Because geothermal and hydropower cost and performance characteristics are specific for each site, the table entries show the cost of the least 

expensive plant that could be built in the Northwest region for hydro and the Great Basin region for geothermal, where most of the proposed sites are 

located.

k Costs and capacities are expressed in terms of net AC (alternating current) power available to the grid for the installed capacity.
U.S. Energy Information Administration | Cost and Performance Characteristics of New Generating Technologies 4

Table 2. Total overnight capital costs of new electricity generating technologies by region

2022 dollars per kilowatt

Technology 1 TRE 2 FRCC 3 MISW 4 MISC 5 MISE 6 MISS 7 ISNE 8 NYCW 9 NYUP 10 PJME 11 PJMW 12 PJMC 13 PJMD

USC $4,188 $4,311 $4,711 $4,835 $4,892 $4,334 $5,222 NA $5,104 $5,269 $4,495 $5,664 $4,851 

USC with 30% CCS $5,281 $5,421 $5,852 $6,011 $6,058 $5,456 $6,463 NA $6,334 $6,504 $5,632 $6,914 $6,055 

USC with 90% CCS $6,907 $7,083 $7,558 $7,812 $7,820 $7,152 $8,281 NA $8,068 $8,294 $7,292 $8,831 $7,750 

CC—single-shaft $1,200 $1,225 $1,366 $1,379 $1,414 $1,236 $1,594 $2,116 $1,599 $1,597 $1,324 $1,600 $1,524 

CC—multi-shaft $1,045 $1,072 $1,215 $1,236 $1,268 $1,084 $1,393 $1,909 $1,370 $1,401 $1,147 $1,469 $1,295 

CC with 90% CCS $2,945 $2,972 $3,175 $3,182 $3,231 $2,999 $3,334 $3,776 $3,258 $3,307 $3,041 $3,447 $3,168 

ICE $2,106 $2,152 $2,300 $2,391 $2,365 $2,182 $2,451 $3,073 $2,359 $2,452 $2,197 $2,673 $2,282 

CT—

aeroderivative

$1,263 $1,289 $1,494 $1,498 $1,543 $1,316 $1,607 $2,057 $1,551 $1,598 $1,370 $1,755 $1,454 

CT—industrial 

frame

$764 $781 $907 $911 $939 $798 $978 $1,262 $942 $973 $830 $1,072 $883 

Fuel cells $6,996 $7,105 $7,430 $7,750 $7,603 $7,224 $7,887 $9,285 $7,567 $7,819 $7,204 $8,337 $7,425 

Nuclear—light 

water reactor

$7,341 $7,499 $7,917 $8,637 $8,330 $7,744 $8,809 NA $8,219 $8,608 $7,608 $9,465 $7,918 

Nuclear—small 

modular reactor

$7,779 $7,962 $8,674 $9,044 $9,041 $8,061 $9,338 NA $8,894 $9,357 $8,160 $10,440 $8,474 

Distributed 

generation—base

$1,729 $1,764 $1,967 $1,986 $2,036 $1,779 $2,296 $3,047 $2,302 $2,300 $1,907 $2,304 $2,195 

Distributed 

generation—peak

$2,034 $2,076 $2,405 $2,412 $2,485 $2,119 $2,587 $3,312 $2,497 $2,573 $2,206 $2,827 $2,341 

Battery storage $1,270 $1,273 $1,255 $1,316 $1,273 $1,300 $1,309 $1,304 $1,275 $1,278 $1,267 $1,283 $1,278 

Biomass $4,637 $4,764 $5,157 $5,329 $5,340 $4,802 $5,933 $8,054 $5,952 $6,056 $5,093 $6,067 $5,804 

Geothermal NA NA NA NA NA NA NA NA NA NA NA NA NA

Conventional 

hydropower

$4,992 $6,098 $2,426 $1,612 $3,283 $4,858 $2,248 NA $4,599 $4,777 $4,164 NA $4,226 

Wind $3,059 NA $1,723 $1,566 $1,875 $1,566 $2,075 NA $2,531 $2,075 $1,566 $2,281 $2,161 

Wind offshore $6,517 $7,819 $7,714 NA $7,989 NA $7,783 $6,714 $8,139 $7,461 $6,100 $8,834 $6,950 

Solar thermal $8,424 $8,551 NA NA NA NA NA NA NA NA NA NA NA

Solar PV with 

tracking

$1,422 $1,395 $1,443 $1,497 $1,480 $1,407 $1,494 $1,758 $1,480 $1,524 $1,440 $1,571 $1,436 

Solar PV with 

storage

$1,751 $1,769 $1,822 $1,880 $1,854 $1,787 $1,892 $2,150 $1,858 $1,896 $1,780 $1,971 $1,842 
U.S. Energy Information Administration | Cost and Performance Characteristics of New Generating Technologies 5 

Technology

14 

SRCA

15 

SRSE

16 

SRCE

17 

SPPS

18 

SPPC

19 

SPPN

20 

SRSG 21 CANO 22 CASO 23 NWPP 24 RMRG 25 BASN

USC $4,337 $4,401 $4,460 $4,366 $4,638 $4,415 $4,600 NA NA $4,874 $4,556 $4,754 

USC with 30% CCS $5,460 $5,511 $5,593 $5,475 $5,778 $5,526 $5,765 NA NA $6,059 $5,704 $5,918 

USC with 90% CCS $7,165 $7,228 $7,313 $7,127 $7,489 $7,178 $7,466 NA NA $7,833 $7,355 $7,697 

CC—single-shaft $1,220 $1,235 $1,273 $1,234 $1,309 $1,222 $1,201 $1,759 $1,719 $1,399 $1,132 $1,224 

CC—multi-shaft $1,071 $1,085 $1,124 $1,083 $1,163 $1,074 $1,034 $1,547 $1,504 $1,213 $974 $1,092 

CC with 90% CCS $2,962 $2,977 $3,044 $2,966 $3,065 $2,921 $2,702 $3,389 $3,351 $3,126 $2,541 $2,854 

ICE $2,194 $2,200 $2,238 $2,178 $2,295 $2,200 $2,221 $2,661 $2,613 $2,367 $2,192 $2,347 

CT—

aeroderivative

$1,309 $1,320 $1,370 $1,318 $1,411 $1,327 $1,198 $1,687 $1,645 $1,480 $1,159 $1,322 

CT— industrial 

frame

$793 $801 $831 $799 $857 $804 $726 $1,031 $1,004 $900 $702 $803 

Fuel cells $7,277 $7,271 $7,371 $7,144 $7,443 $7,209 $7,309 $8,375 $8,278 $7,655 $7,169 $7,636 

Nuclear—light 

water reactor

$7,843 $7,782 $8,035 $7,530 $7,962 $7,527 $7,808 NA NA $8,451 $7,563 $8,460 

Nuclear—small 

modular reactor

$8,101 $8,164 $8,349 $8,082 $8,583 $8,150 $8,258 NA NA $8,942 $8,170 $8,880 

Distributed 

generation—base

$1,757 $1,778 $1,833 $1,777 $1,886 $1,760 $1,729 $2,533 $2,475 $2,014 $1,630 $1,763 

Distributed 

generation—peak

$2,107 $2,126 $2,206 $2,123 $2,273 $2,137 $1,929 $2,716 $2,649 $2,383 $1,867 $2,128 

Battery storage $1,311 $1,293 $1,309 $1,264 $1,272 $1,257 $1,286 $1,323 $1,325 $1,300 $1,259 $1,310 

Biomass $4,820 $4,857 $4,921 $4,825 $5,126 $4,926 $5,276 $6,759 $6,606 $5,455 $5,227 $5,226 

Geothermal NA NA NA NA NA NA $3,468 $3,440 $2,785 $3,366 NA $3,403 

Conventional 

hydropower

$2,353 $5,104 $2,638 $5,049 $2,128 $2,000 $4,056 $4,291 $4,132 $3,421 $4,085 $4,464 

Wind $1,867 $2,116 $1,566 $1,566 $1,723 $1,723 $1,566 $3,458 $2,715 $2,283 $1,566 $1,566 

Wind offshore $6,005 NA NA NA NA NA NA $10,064 $10,558 $7,550 NA NA

Solar thermal NA NA NA $8,509 $8,838 $8,422 $8,826 $10,397 $10,266 $9,394 $8,481 $9,413 

Solar PV with 

tracking

$1,465 $1,392 $1,438 $1,394 $1,449 $1,404 $1,418 $1,579 $1,570 $1,453 $1,435 $1,448 

Solar PV with 

storage

$1,799 $1,781 $1,802 $1,768 $1,826 $1,787 $1,796 $1,969 $1,964 $1,858 $1,789 $1,854 

Data source: U.S. Energy Information Administration, Office of Electricity, Coal, Nuclear and Renewables Analysis

Notes: Costs include contingency factors, regional cost multipliers, and ambient condition multipliers. Interest charges are excluded. The costs are shown before investment tax 

credits are applied.

NA=not available; plant type cannot be built in the region because of a lack of resources, sites, or specific state legislation.

USC=ultra-supercritical, CCS=carbon capture and sequestration, ICE=internal combustion engine, CC=combined cycle, CT=combustion turbine, PV=photovoltaic.

Electricity Market Module region map