Business and Economics Reporting
The levelized cost of energy (LCOE) is a metric used to compare the cost-effectiveness of different energy generation technologies over their lifetimes, calculated as the net present value of total costs divided by the total energy produced. This concept helps in evaluating renewable energy sources by providing a standard measure to assess their economic viability against traditional fossil fuel sources, incorporating factors like initial investment, operational costs, and the lifespan of the energy systems.
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