Información sectorial

A resolution to LCOE is not the metric you think it is

In May, one of us (Mr. Loewen) published an opinion piece in Utility Dive suggesting that there could be an issue with the widely used levelized cost of energy (LCOE) metric — specifically that the metric does not appropriately capture the time value of money.

Given the widespread use of the LCOE metric, and intrigued by the notion that there could be something incorrect about it, the other two authors of this letter (Pieter Gagnon and Trieu Mai, energy economics analysts at NREL) reached out to Mr. Loewen to explore the issues more fully.