Levelized Cost of Energy (LCoE)

The Levelized Cost of Energy (LCoE) is a metric that describes the costs associated with generating a certain amount of energy over the entire lifespan of a facility. It takes into account all incurred costs, such as investment, operation, maintenance, and fuel. The LCoE allows for comparing the economic efficiency of different energy sources by indicating the average cost per unit of energy produced. A lower LCoE indicates more cost-effective energy generation.