Levelized cost of electricity (LCOE)

Levelized Cost of Electricity (LCOE) is a financial metric that calculates the average cost to produce one unit of electricity over a project's lifetime, considering all expenses like construction, operation, maintenance, and fuel, divided by total electricity generated. It helps compare different energy sources (solar, wind, coal, etc.) to determine which is most cost-effective. Essentially, LCOE represents the price per kilowatt-hour that a power plant must generate to cover costs and break even, providing a standardized way to assess the economic viability of various electricity generation options.