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

Question

Responses

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.
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 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.
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Answer 1

The correct characteristic of 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 is a measure used to compare the cost-effectiveness of different energy generation technologies, representing the per-unit cost (typically kWh) of building and operating a generating plant over an assumed financial life and duty cycle.