LCOE

LCOE, or Levelized Cost of Energy, is a way to compare the overall cost of producing electricity from different sources over their lifetimes. It adds up all costs—such as building, operating, and maintaining the energy system—and divides that by the total energy produced. This gives a per-unit cost, typically expressed in dollars per megawatt-hour. LCOE helps investors and policymakers evaluate which energy projects are most cost-effective, considering factors like fuel costs, technology, and lifespan, enabling informed decisions about energy production options.