Which of the following is a characteristic of levelized cost of energy (LCOE)?(1 point)

Question

Responses

It is the minimum amount of power that can be produced per dollar over the lifetime of a power-generating project.
It is the minimum amount of power that can be produced per dollar over the lifetime of a power-generating project.

It is the maximum amount of power that can be produced per dollar over the lifetime of a power-generating project.
It is the maximum amount of power that can be produced per dollar over the lifetime of a power-generating project.

It is the minimum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.
It is the minimum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.

It is the maximum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.

Answer 1

The correct characteristic of levelized cost of energy (LCOE) is:

It is the minimum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.

LCOE is used to compare the cost-effectiveness of different energy generation methods on a consistent basis, taking into account the total lifetime costs divided by the total energy produced.