Levelized Cost of Energy

The Levelized Cost of Energy (LCOE) is a way to compare the total cost of producing electricity from different sources over their lifespan, divided by the total energy they generate. It considers initial investments, operating expenses, maintenance, and fuel costs, spreading them out evenly over the energy produced. Essentially, LCOE tells you the average cost to generate one unit of electricity from a specific source, helping to assess and compare the economic viability of different energy projects, such as solar, wind, or fossil fuels.