Wind & Renewable Energy: the Lowest-Cost Power Sources

As Wyoming and the nation plan for future, growing energy needs, one factor stands out across multiple independent studies: renewable energy, with wind and solar remaining the most cost-effective form of new electricity generation.

At the same time, electricity demand is growing rapidly. The International Energy Agency reports that global electricity demand is expected to increase strongly through 2030, driven by population growth, electrification, data centers and new technologies. Meeting this rising demand will require significant investment in new power generation as well as upgrades to transmission and grid infrastructure.

As utilities plan for this growth, cost remains a major factor in determining which energy sources are developed.

According to the 2025 Levelized Cost of Energy (LCOE) analysis from Lazard, onshore wind and solar photovoltaic (PV) continue to deliver the lowest cost per megawatt-hour (MWh) among new power generation technologies. Even without subsidies or tax credits, these resources often remain less expensive than new coal or natural gas plants. The report notes, “On an unsubsidized $/MWh basis, renewable energy remains the most cost-competitive form of generation…renewables will continue to play a key role in the buildout of new power generation in the U.S.”

This cost advantage is especially important as electricity demand increases. Renewable energy projects can often be built faster and at lower cost, helping utilities meet growing demand while limiting pressure on consumer power bills.

Because of these cost advantages, renewable energy continues to represent a large share of new power generation under development in the United States. According to the U.S. Energy Information Administration, developers expect to add a record amount of new generating capacity in 2026, including roughly 55 gigawatts of solar and wind power. These two resources alone are projected to account for the majority of the new generation coming online this year. 

What This Means for Wyoming

Wyoming has long been an energy leader, and its strong wind resources position it well to meet the nation’s growing electricity demand. While Wyoming’s energy future will likely include a mix of resources, including traditional fuels and emerging technologies, cost-competitive renewables can help:

• Keep electricity prices more affordable
• Meet growing energy demand
• Diversify Wyoming’s energy portfolio
• Support continued investment in energy infrastructure

Energy experts emphasize that meeting future demand will require a balanced portfolio of resources. As CBS News reported, analysts note that “what's needed is a diversity of energy options that can meet the country's rising demand for electricity. Taking certain forms of energy out of the mix would compromise the system as a whole.” While experts agreed that “renewable energy ends up being the most competitive when it comes to costs,” combining different energy sources is often the most cost-effective way to power the grid. 

Recognizing the economic advantages of all available resources, including Wyoming’s world-class wind potential, can help ensure the state remains a leader in powering the country for decades to come. In other words, meeting the country’s growing electricity demand will require using every tool available from traditional energy resources to expanding renewable generation like wind.