Electricity Generation - Energy Information Administration

Energy Information Administration | Levelized Cost and Levelized Avoided Cost of New Generation Resources AEO2020 1 February 2020 Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2020 Levelized cost of Electricity (LCOE) and levelized avoided cost of Electricity (LACE) are, respectively, estimates of the revenue required to build and operate a generator over a specified cost recovery period and the revenue available to that generator over the same period. This paper presents average values of LCOE and LACE for electric generating technologies entering service in 2022, 2025,1 and 2040 as represented in the National Energy Modeling System (NEMS) for the Energy Information Administration s (EIA) Annual Energy Outlook 2020 (AEO2020) Reference The costs for electric generating facilities entering service in 2025 are presented in the body of this report, and those costs for 20223 and 2040 are included in Appendices A and B, r

U.S. Energy Information Administration | Levelized Costs of New Generation Resources in the Annual Energy Outlook 2021 2 . AEO2021 representation of tax incentives for renewable generation . Federal tax credits for certain renewable generation facilities can substantially reduce the realized cost of these facilities.

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