Worth noting lot of industry experts in renewables and outside of it criticize LCOE for not properly taking inflation and total life cycle costs into account. It’s still a useful number but never let it be more than a single data point in determining which form of energy is cost effective balanced against environmental impact.
Edit: also worth noting, LCOE assumes 1:1 supply and demand, no power storage or other other factors if renewables produce more than demand needs, but credits them as if that supply was used. Additionally it doesn’t differentiate low demand and high demand costs that many areas use, which can skew the numbers significantly if not accounted for and just assumed energy prices are constant throughout the day.
Worth noting lot of industry experts in renewables and outside of it criticize LCOE for not properly taking inflation and total life cycle costs into account. It’s still a useful number but never let it be more than a single data point in determining which form of energy is cost effective balanced against environmental impact.
Edit: also worth noting, LCOE assumes 1:1 supply and demand, no power storage or other other factors if renewables produce more than demand needs, but credits them as if that supply was used. Additionally it doesn’t differentiate low demand and high demand costs that many areas use, which can skew the numbers significantly if not accounted for and just assumed energy prices are constant throughout the day.