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Energy
LCOE (Levelized Cost of Energy)
LCOE measures the average cost of electricity generation over a power plant's lifetime.
Definition
Levelized Cost of Energy (LCOE) is the standard metric for comparing the cost of electricity generation across different energy sources. LCOE = (Total lifecycle cost) / (Total energy produced over lifetime). It includes: (1) Capital expenditure (CAPEX), (2) Operating costs (OPEX), (3) Fuel costs, (4) Decommissioning. 2024 LCOE benchmarks: (1) Solar PV (utility): $0.03-0.06/kWh, (2) Onshore wind: $0.03-0.07/kWh, (3) Natural gas: $0.05-0.10/kWh, (4) Coal: $0.05-0.08/kWh, (5) Nuclear: $0.10-0.15/kWh, (6) Battery storage: $0.10-0.15/kWh. Morocco's renewable LCOE ($0.04-0.06) is among the world's cheapest, making it ideal for datacenters.
Related Keywords
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Related Terms
Solar Energy
Solar energy is power generated from sunlight using photovoltaic panels or concentrated solar power.
Wind Energy
Wind energy is power generated from wind using turbines, onshore or offshore.
Power Purchase Agreement (PPA)
A PPA is a long-term contract to buy electricity directly from a power generator at a fixed price.
Renewable Energy
Renewable energy comes from natural sources that replenish — solar, wind, hydro, geothermal.