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

Question

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 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 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.

Answer 1

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.

LCOE is used to compare the cost of different methods of electricity generation and is calculated by dividing the total costs of the project (including initial investment, operations and maintenance, and fuel costs) by the total amount of electricity generated over the project's lifetime.