Levelized cost of energy (LCOE), or sometimes called the levelized cost of electricity, is a common metric in the world of electric utilities to measure the full lifecycle expense by its source in terms of dollars per megawatt-hour or kilowatt-hour.
So it’s all about accounting policies? What about the costs of balancing - despatchable generators vs non? If wind generators had to provide equivalent despatchable energy at their own cost that would up-end the calculations too. I’ve seen some attempts to do this - by allocating shared balancing costs - but allocating costs again is an accounting policy.
The Major Flaws in Calculating Levelized Cost of Energy
So it’s all about accounting policies? What about the costs of balancing - despatchable generators vs non? If wind generators had to provide equivalent despatchable energy at their own cost that would up-end the calculations too. I’ve seen some attempts to do this - by allocating shared balancing costs - but allocating costs again is an accounting policy.