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For LCOE to be usable for rank-ordering energy-generation alternatives, caution must be taken to calculate it in "real" terms, i.e. including adjustment for expected inflation. [ 10 ] [ 11 ] An energy efficiency gap phenomenon exists due to observed lack of consideration of and implementation of demand-side energy conservation . [ 12 ]
The levelized cost of electricity (LCOE) is a metric that attempts to compare the costs of different methods of electricity generation consistently. Though LCOE is often presented as the minimum constant price at which electricity must be sold to break even over the lifetime of the project, such a cost analysis requires assumptions about the value of various non-financial costs (environmental ...
The Cost competitiveness of fuel sources is a measure of whether or not particular fuel sources are cost competitive in the energy market, and is a primary factor in determining if a fuel source will be utilized.
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English: Graph of levelized cost of energy (starting with LCOE 14.0, October 2020) for various energy sources as a function of year, derived from LCOE data from Lazard Source for Version 7 (data through 2024): Lazard LCOE Levelized Cost Of Energy+ 16. Lazard (June 2024). Archived from the original on 28 August 2024.
The issue is still subject of numerous studies, and prompting academic argument. That's mainly because the "energy invested" critically depends on technology, methodology, and system boundary assumptions, resulting in a range from a maximum of 2000 kWh/m 2 of module area down to a minimum of 300 kWh/m 2 with a median value of 585 kWh/m 2 according to a meta-study from 2013.
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