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Levelized Cost of Energy (LCOE). The LCOE is the total cost of installing and operating a project expressed in dollars per kilowatt-hour of electricity generated by the system over its life.
The LCOE values shown for each utility-scale generation technology in Table 1 and Table 2 in this discussion are calculated based on a 30-year cost recovery period, using a real after tax weighted average cost of capital (WACC) of 6.1% 5.elease date: June 3, 2015. This paper presents average values of levelized costs for generating technologies that are brought online in 2020 1 as represented in the National Energy Modeling System (NEMS) for the Annual Energy Outlook 2015 (AEO2015) Reference case.