Press Release
September 9, 2019
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LAZARD RELEASES ANNUAL LEVELIZED COST OF ENERGY AND LEVELIZED COST OF STORAGE ANALYSES
– LCOE 10.0 shows continued cost declines for solar energy –
– LCOS 2.0 shows declining but widely variable battery storage costs –
NEW YORK, December 15, 2016 – Lazard Ltd (NYSE: LAZ) has released its annual in-depth studies comparing the costs of energy from various generation technologies and of energy storage technologies for different applications.
Lazard’s latest annual Levelized Cost of Energy Analysis (LCOE 10.0) shows a continued decline in the cost of generating electricity from solar technology, with lesser cost declines in other forms of renewable energy. Lazard’s latest annual Levelized Cost of Storage Analysis (LCOS 2.0) shows cost declines in most battery storage technologies, but with wide variations depending on the type of application and battery technology.
In addition, LCOS 2.0, conducted with support from Enovation Partners, builds on the inaugural LCOS study conducted in 2015 with a refined methodology and the addition of new analysis that illustrates and compares the economics of “real-world” energy storage applications.
“Our studies continue to demonstrate that there are no one-size-fits-all solutions in energy generation or storage,” said George Bilicic, Vice Chairman and Global Head of Lazard’s Power, Energy & Infrastructure Group. “The demands of a developed economy will continue to require both traditional and alternative energy sources as the technologies driving renewable energy evolve.”
“The economic viability of commercial energy storage systems varies widely by application and on a regional basis,” said Jonathan Mir, Head of Lazard’s North American Power Group. “As manufacturers and customers identify optimal technologies for different use cases, we expect further innovation and a continued drop in costs, which will help drive increased use of renewables.”
The two studies offer a variety of insights, including the following selected highlights:
LCOE 10.0
- The cost of generating energy from solar photovoltaic (PV) technology continues to decline: The median levelized cost of energy from utility-scale PV technologies is down approximately 11% from last year, and rooftop residential PV technology is down about 26%, although the latter is still not cost competitive without significant subsidies and other policy support.
- The cost of generating energy from renewable sources other than solar, such as onshore wind, geothermal, and biomass, declined only at the margins from last year, reflecting both the maturing of technology in those areas and a relatively low level of investment. The median cost of generating energy from offshore wind generation declined approximately 22%, but remains substantially more expensive than onshore wind facilities, especially in the U.S.
- Even though alternative energy is increasingly cost-competitive and storage technology holds great promise, alternative energy systems alone will not be capable of meeting the baseload generation needs of a developed economy for the foreseeable future. Therefore, the optimal solution for many regions of the world is to use complementary traditional and alternative energy resources in a diversified generation fleet.
LCOS 2.0
- Due to refined methodology for LCOS 2.0, we recommend against making broad cost comparisons to the LCOS 1.0. However, the direct comparisons that can be made show that storage costs are generally dropping. For example, the median cost of using lithium-ion technologies decreased versus last year by approximately 12%, 24% and 11% for peaker replacement, transmission investment deferral and residential use cases, respectively, partially attributable to declining capital costs, among other factors.
- “Behind-the-meter” merchant energy storage systems, which are sited at factories, universities and hospitals, among other high energy use locations, show great promise. However, their economic viability depends greatly on local market structure and incentives, among other factors. For example, a battery-based storage system that is economically viable in Pennsylvania may not be viable in Texas.
- Industry participants continue to expect increased demand for energy storage to result in enhanced manufacturing scale and ensuing cost declines. If industry projections materialize over the next five years, cost-effective energy storage technologies will have increasingly broad applications across the power grid, such as providing an alternative to conventional gas-fired peaking plants in certain areas, as well as extending the usefulness over the course of the day of renewable generation such as wind and solar farms. LCOE 10.0 and LCOS 2.0 reflect Lazard’s approach to long-term thought leadership, commitment to the sectors in which it participates, and focus on intellectual differentiation. The two studies are posted at www.lazard.com/perspective.
Lazard’s Global Power, Energy & Infrastructure Group serves private and public sector clients with advisory services regarding M&A, financing and other strategic matters. The group is active in all areas of the traditional and alternative energy industries, including regulated utilities, independent power producers, alternative energy and infrastructure.
About Lazard
Lazard, one of the world's preeminent financial advisory and asset management firms, operates from 42 cities across 27 countries in North America, Europe, Asia, Australia, Central and South America. With origins dating to 1848, the firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments and individuals. For more information on Lazard, please visit www.lazard.com
PRESS RELEASE
Consulting magazine's honor highlights consultancies "that are shaking up the profession"
February 15, 2017, Chicago—Consulting magazine has named Enovation Partners to its annual list of “Seven Small Jewels”—seven smaller consultancies that are breaking new ground in terms of firm management and financial performance.
“We’re honored to be one of 2017’s small jewels and to be listed with such an impressive group of firms,” said Enovation CEO and founding partner Bob Zabors.
Enovation Partners, which made Consulting’s “Seven to Watch” list in 2016, has seen impressive growth since it began. According to Zabors, Enovation identified three trends when its partners founded the firm in 2013: An emerging wave of technology innovation moving the energy market toward an increasingly distributed and renewable future; natural gas displacing other fossil fuels; and consumers and regulators developing new expectations for reliability, interaction, and sustainability.
“We wanted to facilitate this transition and work with companies to shape the new energy landscape,” said Zabors.
“We’ve been able to work with a broad set of clients--utilities, energy retailers, developers, suppliers, startups, private equity investors, and family offices,” said Zabors. “In turn, working across such a group has helped us expand our innovation capabilities, data sets, and analytics.” For Enovation, enhancing analytics and research are avenues of future growth, he said.
“We have a highly collaborative culture of sharing and challenging ideas and pushing ourselves to innovate, while we help clients do the same,” he added.
In January 2016, Enovation acquired the Cleantech Group, which serves to advance innovation and resource efficiency across sectors. Cleantech connects innovators and investors through events, research, and its i3 platform--an interactive database of more than 24,000 innovative companies.
Zabors also cited his group’s partnerships with WestRiver Management and Silicon Valley Bank, and with the Gas Technology Institute as an early catalyst.
We are in a generational shift, said Zabors. The expectation is that energy will be more renewable, that transportation will be electrified, that distributed technology will be pervasive, and that consumers and investors will look for more controllable and sustainable options.
"What attracts people to our consulting mission is also what poses the greatest challenges—staying ahead of the curve in an increasingly global market for innovation," said Zabors. "We help clients create new ideas and businesses and invest in where the markets will be in the future. It's exciting and, by definition, uncertain."
About Enovation Partners
Enovation Partners focuses on areas of rapid growth and innovation in the energy sector—including distributed energy resources, natural gas infrastructure, and venture investment—and provides strategic advice, advanced analytics and research, and networking opportunities (through its Cleantech Group affiliate). Enovation is headquartered in Chicago, with offices in London, New York, San Francisco, and Washington, DC. www.enovationpartners.com
In 2017 Enovation Partners was named one of the "Seven Small Jewels" in the consulting industry by Consulting Magazine.
Press Release
January 19, 2016
Enovation Partners Welcomes Cleantech Group to Its Growing Network of Capabilities
Deal underscores how advanced technologies and innovative business models have become a strategic priority among energy companies, industrials, and investors.
Chicago, London, and San Francisco. January, 19, 2016 – Enovation Partners, LLC, one of the preeminent advisory services firms in the energy and infrastructure sectors, has acquired Cleantech Group, the leading global network for deploying sustainable innovations in energy and beyond.
Cleantech has moved rapidly from an aspirational set of technologies and business models to a foundation of strategy planning and innovation across industries.
“Since 2002, when it coined ‘cleantech,’ Cleantech Group has been at the forefront of new energy technology commercialization,” said Robert Zabors, CEO and founding director of Enovation Partners. “Its successful efforts to bring together entrepreneurs, investors, and corporate venture groups, through its well know events and its i3 Connect platform, have been instrumental in accelerating cleantech’s drive into the economy.”
“Combining those strengths with Enovation’s strategic advisory capabilities is a natural extension of both group’s missions,” Zabors said.
“Investment in sustainable technologies and the rate of customer adoption continue to progress,” said incoming Cleantech Group CEO Richard Youngman, former managing director of Cleantech Europe and Asia and partner with Enovation in the acquisition. “Together we will offer high-quality services for an international network of entrepreneurs, innovators, investors, energy companies and other industrials.”
The Cleantech Group assets are being acquired by an Enovation Partners, LLC, subsidiary, which will continue Cleantech Group’s brand and identity. The expanded group will maintain offices in Chicago, Boston, London, New York, San Francisco, and Washington, DC.
Cleantech Group connects sustainable innovation, finance, and corporate support in several ways
- Its events in North America and Europe are the premier intelligence and networking events for corporates, investors, start-ups, and government officials. Cleantech Forum San Francisco 2016 takes place January 25-27. Cleantech Forum Europe 2016 takes place in Lyon, France, April 11-13. The San Francisco Forum will see the release of the group’s annual Global Cleantech 100 and Award Winners – the top private innovation companies in clean technology.
- The group’s online i3 Connect subscription platform allows corporates, venture capitalists, investors, economic development agencies, and universities to find and vet start-ups, list targets, and connect directly with start-up decision makers. Subscribers gain access to proprietary intelligence on 24,000+ companies in (among other areas) energy efficiency, energy storage, smart grid, solar,water, and urban growth.
Established in 2013, Enovation works with electric and gas companies, new ventures, suppliers, investors, and large consumers to drive innovation and growth across energy and related industries. Enovation’s team includes top-tier strategy consultants and former industry executives, energy investors, regulators, and developers.
- Enovation focuses on strategy in the context of the exponential growth of distributed energy and technologies, and the disruptive effects of innovation in renewables and natural gas.
- Its work includes business model innovation, helping to accelerate investment, commercialize new technologies and improve business practices
- In distributed energy resources, Enovation has developed ground-breaking cost-comparison benchmarking for storage technologies and applications, as well as tools to locate DER opportunities and threats for utilities, developers, and large energy users.
- The group also works with natural gas utilities using advanced analytics to reduce risk and environmental impact, and improve productivity in construction, operations, and leak detection.
For more information on the transaction, the role of cleantech in today’s energy economy, Cleantech Group and Enovation Partners, or to speak with Robert Zabors or Richard Youngman…
Contact:
Eric Blume
Director of Communications
Enovation Parters, LLC
+1.202.281.8462
eblume@enovationpartners.com
Stephen Marcus
Director of Business Development
Cleantech Group, Inc.
+44.203.743.8615
stephen.marcus@cleantech.com
Heather Matheson
Senior Program Manager
Cleantech Group, Inc.
+1.415.233.9714
heather.matheson@cleantech.com