New research on global electricity systems shows that whilst emissions are being lowered and electric generation is now more diversified, it is also increasingly expensive.

In most countries, electricity generation now costs $100 per MWh or more, particularly for low-carbon technologies. Only the long-term operation (LTO) of existing nuclear power plants, hydroelectricity and, as long as their system costs are excluded, onshore wind and solar photovoltaic technologies can provide electricity for less than this threshold.

These are the key findings from the latest edition of The Costs of Generating Electricity 2025, a report providing internationally comparable data on the costs of generating electricity across 21countries and 23 different technologies, from the NEA and EPRI (Electric Power Research Institute).

“There is no single technology that can meet every country's energy needs in every circumstance,” said William D. Magwood, IV, NEA director general. “Countries will need to make policy and investment choices that reflect their own priorities, resources and electricity systems. The data and analysis in this report can support those decisions.”

Technologies that were once considered niche, including geothermal energy, biomass, battery storage, hydrogen-fired gas turbines and fossil-fuel plants equipped with carbon capture, utilisation and storage (CCUS), are receiving growing attention across NEA member countries. This diversity reflects the increasingly complex challenge of balancing affordability, energy security, reliability and environmental goals.

The analysis confirms that utility-scale onshore wind and solar photovoltaic technologies continue to offer attractive costs in many countries. However, unlike in previous editions of this analysis, no significant further cost reductions were observed. The report also highlights contrasting trends among other low-carbon technologies. Offshore wind continues to face relatively high costs despite strong capacity factors, while geothermal energy shows promising results where suitable resources are available, offering the potential for a competitive source of low-carbon, dispatchable electricity.

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