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How We Crunch the Numbers

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Energy Intelligence's levelized cost of energy (LCOE) calculations are based on a financial model that calculates a break-even price for electricity delivered to the high-voltage grid. The data cover eight forms of renewable energy, four forms of fossil fuel energy and nuclear power. It is mostly based on expert reports. Although costs vary across regions and projects, we assume capital investment and nonfuel operating costs are identical in the US and Western Europe, where economic and financial conditions are comparable. Capital and nonfuel operating costs in Japan, developing Asia and the Mideast are derived from these, based on data sets, notably from the International Energy Agency and International Renewable Energy Agency, providing international comparisons. Developing Asia calculations mostly reflect data for China and India.

Topics:
Renewable Electricity , Gas-Fired Electricity
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