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

Responses

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.
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.

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 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.

1 answer

The correct characteristic of the 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 represents the average cost of generating electricity over the lifetime of an asset, and it allows for comparison between different energy projects and technologies.