The Levelized Cost of Energy (LCOE) formula is a financial metric used to compare the cost of energy produced by different energy generation methods over their lifetimes. It calculates the per-unit cost (usually in $/MWh) by considering all capital, operational, and maintenance costs, as well as the expected energy production over the life of the project. Understanding LCOE is essential for evaluating the economic feasibility and competitiveness of various energy technologies, particularly in the context of renewable energy sources.
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