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Question

Which of the following would lower the levelized cost of energy (LCOE) for a project? Select all that apply.(1 point)
Responses

decrease total production
decrease total production

keep capital expenses less than total production
keep capital expenses less than total production

decrease capital expenses
decrease capital expenses

increase total production
increase total production

increase capital expenses

1 answer

To lower the levelized cost of energy (LCOE) for a project, the following actions would be beneficial:

  1. Decrease capital expenses - Lowering capital expenses directly reduces the costs used in the LCOE calculation.
  2. Increase total production - Increasing total energy production spreads the total costs over a larger amount of energy generated, thus reducing the LCOE.

Therefore, the correct responses that would lower LCOE are:

  • Decrease capital expenses
  • Increase total production

Responses such as decreasing total production or increasing capital expenses would have the opposite effect, potentially raising the LCOE. Keeping capital expenses less than total production is somewhat ambiguous and might not have a direct impact on LCOE without additional context.