LCoE is a standard measure for evaluating and comparing projects in the energy generation sector. It is a powerful metric and incredibly insightful if done correctly. However, there are also a number of potential pitfalls in its application. Understanding this unit and its intended use can be challenging, and model outputs like this need proper supporting details to ensure they are understood correctly.
This white paper explains different calculation methods for LCoE and addresses cases where the unit can be misinterpreted when comparing projects and what potential pitfalls you should look out for.
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