Transcription of Electricity Generation - Energy Information Administration
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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, respectively.
electricity to the grid. Actual plant investment decisions consider the specific technological and regional characteristics of a project, which involve many other factors not reflected in LCOE (or LCOS) values. One such factor is the projected utilization rate, which depends on the varying amount of electricity required over time and
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