Traditional levelized cost of electricity (LCOE) numbers ignore what intermittent resources actually cost the grid. AOER’s Indiana-specific LCOE analysis, commissioned by Reliable Energy, Inc., sets the record straight by incorporating imposed costs and firming costs.

Indiana’s existing fleet remains the lowest-cost foundation for ratepayers: hydro at $17.75/MWh, combined-cycle natural gas at $29.14/MWh, and coal at $55.22/MWh. For new generation to meet surging data center demand, combined-cycle natural gas is the most competitive option at $53.09 to $78.04/MWh. Once you account for backup generation and the costs wind and solar impose on existing plants:

• Wind rises from $67.10 to $129/MWh.
• Solar rises from $76.79 to $159.24/MWh, even more expensive than new nuclear.

Seventy-five percent of Indiana’s existing coal fleet already produces power below the cost of the cheapest new-build option. With electricity prices up 93 percent since 2007 and over 12,000 MW of data center demand in the pipeline, Indiana can’t afford to get this wrong. The lowest-cost, most reliable path forward is maintaining the existing fleet and building new combined-cycle natural gas for growth.

Check out AOER’s full report on the Levelized Cost of Electricity in Indiana.