THE LEVELIZED COST OF ELECTRICITY IN INDIANA
Isaac Orr and Mitch Rolling
April 2026
Always On Energy Research (AOER) conducted an Indiana-specific Levelized Cost of Energy (LCOE) analysis to determine the lowest-cost means of serving existing residential, commercial, and industrial customers and meeting anticipated electricity demand growth from data centers.
Their modeling determined that the continued utilization of Indiana’s existing hydroelectric, $17.75 per megawatt-hour (MWh), combined- cycle (CC) natural gas, $29.14 per MWh, and coal plants, $55.22 per MWh, while building new CC natural gas units, would be the most cost-effective means of serving existing customers and meeting incremental electricity demand ($53.09 to $78.04 per MWh).
New wind, solar, and nuclear power plants would be significantly more expensive than other resources, with unsubsidized costs of $67.10, $76.79, and $122.18 per MWh, respectively.
Wind and solar costs increase to $129 and $159.24 per MWh, respectively, when the cost of backup generation resources needed when the wind is not blowing, and the sun is not shining, are incorporated into their LCOEs.
Continuing to use the state’s existing natural gas and coal plants, while adding new combined-cycle natural gas power plants, is the fastest way to meet Indiana’s growing energy requirements at the lowest cost to consumers and bolster reliability in the region.
Click the link below to view the full analysis.
The Indiana Levelized Cost of Energy Report, Always On Energy Research
