Levelized Cost of Energy (LCOE): An Overview

This training video introduces levelized cost of energy (LCOE) and why it is important for data-driven decision making in energy planning. The training explains how to calculate LCOE of the electricity generating assets and describes key parameters, sensitivities, and some of its limitations. Example applications, analyses, and results are provided as well as an introduction to the Transparent Cost Database. This video was developed as part of a remote training series for the Energy Alternatives Study for the Lao PDR within the Smart Infrastructure for the Mekong Program. This video concentrates on RE resources and answers the key questions: What is LCOE? How is LCOE calculated? What are its applications, limitations, sensitivities, and parameters?

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