U.S. Natural Gas Electricity Costs Hit 17-Year High; Renewable Energy Reaches Record Levels

The electricity cost derived from natural gas plants in the U.S. has reached its highest level in at least 17 years, according to Lazard Inc. Combined cycle gas plants' levelized energy costs rose to $90 per megawatt-hour in 2026, up from $78 the previous year. This marks the highest level since 2009, when the cost was $83 per megawatt-hour.

Energy Cost Peak

■Natural gas electricity costs increased by 15.4% in 2026.

■Solar energy costs reached $69 per megawatt-hour; up 10.8%.

■Wind energy costs hit $68 per megawatt-hour; up 11.8%.

■Since 2014, renewable energy sources had not reached these levels.

Critical Signal for Investors

George Bilicic, Global Head of Energy and Infrastructure at Lazard Inc., stated that rising costs are expected to continue due to increased demand from data centers. This trend has driven up electricity bills in some U.S. regions and become a key issue ahead of the November midterm elections.

Zeynep Kaya: The surge in energy costs underscores the need to accelerate renewable investments. However, a high-interest environment may sideline short-term projects. Investors must focus on long-term sustainability strategies.