Methods: Levelized cost of energy

calc.cost.lcoe · Version 0.2.0

Method

LCOE = (fixed charge rate × capital cost + fixed O&M) ÷ (capacity factor × 8.76 MWh per kW-year) + variable O&M + fuel cost, as NLR's Annual Technology Baseline defines it.

Assumptions

The fixed charge rate carries the financing, taxes, and project life; it is entered, not computed.
Costs are in the same year's dollars; no default is offered, so every input is yours.

Sources

NLR, Annual Technology Baseline (ATB): Levelized Cost of Energy, 2025, LCOE equation: (FCR × CAPEX + FOM) ÷ (CF × 8,760) + VOM + fuel

Worked examples

Example	Independent source	Tolerance	Last result
FCR 0.07, $1,000/kW, $20/kW-year, 25% capacity factor	calc/storage-and-cost spec, scenario "LCOE numbers": 90 ÷ 2.19	±0.005, ±0.005, ±0.005	Passed on Oct 31, 2026

Known differences from reference engines

None recorded.

Cite this tool

Levelized cost of energy, version 0.2.0. gridprims. https://gridprims.com/tools/calc/cost/lcoe/