LCOE (levelized cost of energy)

LCOE (levelized cost of energy) is the average cost of producing a unit of energy over a plant's lifetime: the discounted sum of capital and operating costs divided by discounted generation, in EUR/MWh.

LCOE compares technologies and locations regardless of the power price. If the expected price (market or PPA) is above LCOE, the project is broadly viable. See how the calculator computes it in the methodology.

Formula

LCOE = Σ (CAPEX_t + OPEX_t) / (1+r)^t ÷ Σ E_t / (1+r)^t