Ground-mounted solar PV and onshore wind energy are the most cost-effective technologies for new power plants in Germany, with levelised cost of electricity (LCOE) ranging from EUR 41 to EUR 92 per MWh, according to Fraunhofer ISE.
New solar installations combined with battery systems have LCOE between EUR 60 and EUR 225 per MWh, reflecting varying costs for battery and solar systems and different levels of solar radiation. The study shows that these solar PV systems, even with battery storage, produce electricity more cheaply than new coal or gas-fired plants.
For new coal power plants, LCOE is above EUR 150 per MWh due to rising carbon certificate prices, while combined cycle gas turbine (CCGT) plants have LCOE between EUR 109 and EUR 181 per MWh. Short-term flexible gas-fired plants have cost between EUR 154 and EUR 326 per MWh. Gas turbines built in 2024 and converted to hydrogen in 2035 have LCOE between EUR 204 and EUR 356 per MWh, while new nuclear plants range from EUR 136 to EUR 490 per MWh.
Christoph Kost, head of the Energy System Analysis Department at Fraunhofer ISE, highlighted that large-scale projects combining ground-mounted PV, wind farms, and battery storage are good investments.