Levelized cost of energy
Preview Version 0.2.0The levelized cost of energy from capital cost, operating costs, and capacity factor, with each term's share shown.
Levelized cost of energy
41.10$/MWh
The levelized cost of energy is $41.10 per MWh.
NLRCross-checked · The spec's $41.10/MWh case passes, with each term shown. NLR ATB 2025's published LCOE for nine technologies (utility, commercial, and residential PV, land-based and offshore wind, geothermal, hydropower, biopower, and CSP) is reproduced from each case's own inputs within 1%. What this means
Example values · Review pending Report a problem
How we got this
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.
Steps
- Energy per kW of capacity: 25% × 8.76 MWh per kW-year = 2.19 MWh per kW-year.
- Capital: 0.07 fixed charge rate × $1,000/kW ÷ 2.19 = $31.96/MWh.
- Fixed O&M: $20/kW-year ÷ 2.19 = $9.13/MWh.
- Variable O&M $0.00/MWh and fuel $0.00/MWh are added as they are.
- LCOE: $31.96 + $9.13 + $0.00 + $0.00 = $41.10/MWh.
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
Known limits
- A simple LCOE: no degradation, construction period, or tax detail beyond what the fixed charge rate carries.
- No defaults are offered; read the ATB for costs and capacity factors by technology.