Levelized Cost of Energy
Levelized Cost of Energy
Analysis of energy cost over the lifetime of device.
The levelized cost of energy (LCOE) is a measure of a device’s lifetime costs divided by energy production. This measure allows for the comparison of different technologies of unequal life spans, project size, capital cost, and capacities. Key inputs to calculating LCOE include financing, manufacturing, deployment, operation, maintenance, and decommissioning costs.
Photo: Verdant Power