Beyond the primary renewables, the report highlights a divergence in the economic trends of other low-carbon technologies. Offshore wind, for instance, continues to face a different set of economic hurdles. Despite benefiting from high capacity factors—meaning offshore turbines tend to produce electricity more consistently and at higher volumes than their onshore counterparts due to stronger, steadier sea winds—the technology remains relatively expensive. The costs associated with maritime construction, specialized maintenance vessels, and the complex subsea cabling required to bring power to the mainland remain high, preventing offshore wind from matching the cost profile of onshore alternatives at this stage.
In contrast, the report identifies geothermal energy as a particularly promising component of the future energy mix. Geothermal power offers a unique advantage in the low-carbon landscape: it is a "dispatchable" source of electricity. Unlike wind and solar, which are dependent on weather conditions, geothermal plants can provide a steady, "always-on" flow of baseload power that can be adjusted to meet demand fluctuations. The NEA and EPRI analysis suggests that geothermal is becoming an increasingly competitive option, providing a reliable and carbon-free alternative that helps stabilize a grid heavily reliant on more volatile renewable sources.
The emphasis on "dispatchability" and system reliability is a recurring theme throughout the report. As countries phase out traditional fossil fuel plants, they are losing the inherent flexibility and inertia that those systems provided to the grid. Replacing that lost stability requires a careful mix of technologies, including nuclear power, geothermal, and advanced storage solutions, alongside variable renewables. The report suggests that the true cost of an energy system is a reflection of this balancing act. A system that relies too heavily on a single type of generation may face higher costs related to overcapacity or the need for extensive backup systems.
Furthermore, the report touches upon the external pressures that are driving generation costs higher across the board. The global landscape for energy security has shifted dramatically in recent years, prompting many nations to prioritize domestic energy production and supply chain resilience over the lowest possible immediate cost. This focus on security often involves investing in more expensive local infrastructure or diversifying fuel sources to avoid over-reliance on any single provider or technology. When combined with the rising demand for electricity—fueled by the electrification of transportation, the growth of energy-intensive data centers, and the transition to electric heating in the residential sector—the upward pressure on costs becomes even more pronounced.
