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LCOE Explained: What the Cheapest-Power Number Leaves Out

LCOE Explained: What the Cheapest-Power Number Leaves Out

Sep 15, 2026 | Policy & Regulations, Renewable Energy

The levelized cost of energy, or LCOE, is a single number: a power plant’s total lifetime cost divided by the total electricity it produces over its life, usually quoted in dollars per megawatt-hour. It is the most-cited figure in energy — and the most misused....