LCOE
Science & Engineering abbreviation · Energy
| Stands for | Levelized cost of energy |
|---|---|
| Categories | Science & Engineering |
LCOE stands for Levelized cost of energy, an energy abbreviation.
Average cost per unit of electricity a power source produces over its lifetime, combining construction, financing, fuel, operation and maintenance and dividing by total expected output. LCOE is the standard metric for comparing the economics of solar, wind, gas, coal and nuclear plants.
Example: Lazard's analysis shows unsubsidized utility-scale solar with an LCOE well below that of new gas peaking plants.
Usage notes
Also expanded as levelized cost of electricity. Investment bank Lazard has published widely cited annual LCOE comparisons since 2007. Critics note that LCOE ignores when power is produced, so variable sources like wind and solar may need storage or backup not reflected in the figure; metrics such as "levelized full system cost" try to address this.
Related abbreviations
More energy abbreviations
- HVAC – High-voltage alternating current
- HVDC – High-voltage direct current
- HVO – Hydrotreated vegetable oil
- ICE – Internal combustion engine
- ISO – Independent system operator
- ITC – Investment tax credit
- LEU – Low-enriched uranium
- LFP – Lithium iron phosphate
- Li-ion – Lithium-ion
- LNG – Liquefied natural gas
- LOCA – Loss-of-coolant accident
- LPG – Liquefied petroleum gas