Energy

LCOE (Levelized Cost of Energy)

Also called Levelised Cost of Energy.

The discounted lifetime cost of building and operating an energy asset divided by its discounted lifetime energy output, expressed as cost per unit of energy.

Source: SDA editorial · reviewed 2026-09-09

Related terms

Capacity Factor

The ratio of actual energy production over a period to the energy that would have been produced at continuous maximum output during that period.

Grid Parity

The point at which electricity from one source can be supplied at a cost comparable to or lower than grid electricity under the chosen cost assumptions.

PPA (Power Purchase Agreement)

A contract under which an electricity producer and an offtaker agree terms for electricity delivery over a defined period.

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