Definition
1. The levelized cost of electricity (LCOE) is a measure of a power source which attempts to compare different methods of electricity generation on a consistent basis. It is an economic assessment of the average total cost to build and operate a power-generating asset over its lifetime divided by the total energy output of the asset over that lifetime.
2. The concept of levelized cost of electricity is used to compare the cost of energy coming from different sources.
LCOE = Total cost of ownership ($) / System production over its lifetime (kWh)
Abbreviation
LCOE
Synonyms
Levelized energy costs, electricity production costs, levelized costs of energy, minimum cost of electricit
Superterms
cost of electricity, lifetime costs, electricity pricing
Subterms
Sources
https://en.wikipedia.org/wiki/Cost_of_electricity_by_source (1.); http://thegrid.rexel.com/en-us/energy_efficiency/w/solar_renewable_and_energy_efficiency/92/the-levelized-cost-of-electricity-definition-and-example (2.)
Author: Abdulhamid El-Issa
