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levelized_cost_of_energy_lcoe

Levelized Cost of Energy (LCOE)

LCOE is levelized cost of energy. From Wikipedia, it is a measure of the average net present cost of electricity generation for a generating plant over its lifetime. The LCOE is used to compare different methods of electricity generation on a consistent basis. The LCOE “represents the average revenue per unit of electricity generated that would be required to recover the costs of building and operating a generating plant during an assumed financial life and duty cycle.” Inputs to LCOE are chosen by the estimator. They can include cost of capital, “fuel costs, fixed and variable operations and maintenance costs, financing costs, and an assumed utilization rate.”

Historical LCOE data is from multiple data sources. Generally, it is from IEA’s 2010 and 2015 reports with discount rate of 5% and 7%. Most of the renewables are from IRENA, the reference data is in the year of 2018, the discount rate is 5%. Other countries in Africa, Middle East and South Asia, the data is from Bloomberg’s 2015 report with 5% discount. By comparison, compatible LOCE is chosen for each country by types of fuels. Oil power generation is less used at this moment, its LCOE is difficult to find. This Oil LCOE is from the last version of this model, which is captured in articles and reports.

Source:
https://en.wikipedia.org/wiki/Levelized_cost_of_energy
https://www.eia.gov/outlooks/aeo/pdf/electricity_generation.pdf

levelized_cost_of_energy_lcoe.txt · Last modified: 2020/07/09 09:18 by jyang

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