Blogs, Solar

Better Reporting of LCOE methodology and assumptions needed

Recognizing that LCOE is a benchmarking tool, there is high sensitivity to the assumptions made, especially when extrapolated several years into the future. Thus, if used to consider policy initiatives, assumptions should be made as accurately as possible, with respective sensitivity analysis (e.g. Monte Carlo) and justifications. Especially in the case of renewable energy technologies, like solar PV, that are capital intensive with negligible maintenance (like fuel costs), it is important to make the appropriate assumptions when comparing systems for energy management plans. There are many varying estimates as demonstrated in the paper, with varying degrees of reporting detail.

Read more: K. Branker, M.J.M. Pathak, J.M. Pearce, A Review of Solar Photovoltaic Levelized Cost of Electricity, Renewable and Sustainable Energy Reviews, 15, pp.4470-4482 (2011), http://www.appropedia.org/Review_of_Solar_Levelized_Cost

Contact: J.M. Pearce : [email protected]

Calculating the True Cost of Solar Electricity