Summary
The discussion centers on the evolving landscape of global power markets, particularly the levelized cost of energy (LCOE) as reported by Lazard. Gerard Reid and Laurent Segeland highlight the significance of Lazard's annual LCOE report, which compares the economics of various energy sources including solar, wind, coal, gas, and nuclear. The report has played a crucial role in shifting perceptions about the cost-effectiveness of renewables, demonstrating their decreasing prices and helping to attract investment into the energy transition.
George Belichick, Global Head of Power, Energy, and Infrastructure at Lazard, shares insights on current trends in power demand, emphasizing the importance of understanding regional differences in energy needs and the risks of overbuilding infrastructure. He notes that while renewables remain the cheapest energy source in the U.S., the costs of natural gas and wind generation are rising due to inflation and labor costs. Belichick also discusses the challenges and opportunities presented by the ongoing geopolitical tensions affecting energy supply chains, particularly in relation to tariffs on Chinese products.
The conversation touches on the future of electrification in the U.S., with expectations for gradual growth in electric vehicle adoption and the continued reliance on natural gas for heating in colder regions. Belichick expresses skepticism about the immediate viability of nuclear energy and fusion technology, while acknowledging the potential for innovation in energy generation and efficiency. The dialogue concludes with a recognition of the complexities and regional variances in the energy market, underscoring the need for careful planning and investment in infrastructure to meet future power demands.
Show Notes
Founded in 1848, Lazard is one of the world’s most prestigious investment banks. But in energy, its influence goes well beyond Wall Street. For twenty years, Lazard’s Levelized Cost of Energy (LCOE) report has shaped how investors think about the economics of solar, wind, gas, coal and nuclear. It has helped change minds—and channel vast amounts of capital into the energy transition. The report has also attracted criticism. Its critics argue that LCOE ignores some of the hardest questions facing modern power systems: intermittency, grid integration, balancing and backup. Yet despite those shortcomings, for anyone investing in energy, the Lazard report remains the reference. The “source.” So what does the latest edition tell us about where energy is heading? Laurent and Gerard have the privilege of sitting down with George Bilicic, Global Head of Power, Energy & Infrastructure at Lazard. George advises some of the world’s largest companies and governments on strategy and finance and has spent decades at the heart of the energy and financial industries, working alongside legendary figures such as Felix Rohatyn and Bruce Wasserstein. We talk about America’s extraordinary surge in electricity demand—and what it means for the power system. We dig into the economics of solar, wind, gas and nuclear. We discuss geothermal. And we ask a deceptively simple question: what is actually the cheapest way to produce reliable electricity?
The answer is more complicated than the headlines suggest. In the US, renewables are among the cheapest sources of new power. But geography matters. So do grids, intermittency and backup. Gas can still be remarkably competitive when those costs are taken into account. And there is a crucial catch: what works economically in gas-rich America does not necessarily work in countries that have to import their gas. Then there is nuclear. Nuclear is coming back—but don't expect a renaissance overnight. We discuss why its revival is likely to be slow, expensive and heavily dependent on governments rather than markets. A fascinating conversation with one of the true titans of the energy and finance industry.
Link to Lazard LCOE report https://www.lazard.com/news-announcements/lazard-releases-2026-levelized-cost-of-energyplus-report-pr/
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