Levelised cost of electricity
Keeping 1.5°C Alive: Closing the Gap in the 2020s, version 1.0, published by the Energy Transitions Commission in September 2021, defines the levelised cost of electricity (LCOE) as: ‘A measure of the average net present cost of electricity generation for a generating plant over its lifetime. The LCOE is calculated as the ratio between all the discounted costs over the lifetime of an electricity-generating plant divided by a discounted sum of the actual energy amounts delivered.’
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