Ask a New Question
Menu

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

decrease capital expenses
decrease capital expenses

increase total production
increase total production

increase capital expenses
increase capital expenses

keep capital expenses less than total production

1 answer

To lower the levelized cost of energy (LCOE) for a project, the following factors would apply:

  1. Decrease capital expenses - Lowering the initial costs associated with the project would reduce the LCOE.
  2. Increase total production - Increasing the amount of energy produced while keeping costs the same would lower the LCOE since the cost would be spread over more units of energy.

The other options would not lower the LCOE:

  • Decrease total production - This would increase LCOE since fixed costs are spread over fewer units of energy.
  • Increase capital expenses - This would also increase LCOE.
  • Keep capital expenses less than total production - While this may sound favorable, it does not directly contribute to lowering the LCOE. The total capital expenses and production rates need to be optimized to lower LCOE.

So the correct answers are:

  • Decrease capital expenses
  • Increase total production