Levelized cost of electricity

The levelized cost of electricity (LCOE) is a measure of the average net present cost of electricity generation for a generator over its lifetime, used to compare generation methods on a consistent basis. The article states that LCOE is an estimate of production cost rather than the price of electricity, and that its outputs are highly sensitive to input values. It also says LCOE may not capture time effects such as dispatchability, and that the US Energy Information Administration recommended comparing non-dispatchable sources such as wind or solar to the levelized avoided cost of energy (LACE) in 2014. The article further notes that LCOE often ignores indirect costs and co-benefits, and that the discount rate is one of the most controversial inputs.