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

Responses

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

1 answer

The correct response 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.

The Levelized Cost of Energy (LCOE) represents the average cost per unit of electricity generated (usually expressed in dollars per kilowatt-hour, or $/kWh) over the life of a project, accounting for initial capital costs, operations and maintenance costs, and the expected output of the project.