Alexander C. Kaufman
@kaufman
LCOE is an important metric, though not the only one for measuring the value of a generating asset. It also has a complicated history in recent energy debates. Supporters of nuclear power have long argued that the measurement didn’t capture the actual levelized cost of a nuclear plant because it was underestimating the lifespan and the economic utility generation and didn’t capture the need for grid upgrades or backup generation for intermittent renewables. As a result, wind and solar came out as the easy winners in what was essentially an apples to oranges comparison. But last year’s estimates from Lazard tried to at least partially correct for it — which is why you see that $32/megawatt hour figure that is just $3 above the low end for utility scale solar.
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