##  [Levelized Cost of Energy](/levelized-cost-energy) 

  ##  [Levelized Cost of Energy](https://engineering.quantumdictionary.io/levelized-cost-energy-0) 

  

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**Engineering & Applied Technologies Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A lifecycle economic metric defined as the net present value of all costs (capital, operation & maintenance, fuel, and decommissioning where applicable) over a generation asset's operational life divided by the discounted sum of its expected energy output, yielding a single average unit cost of electricity under the adopted assumptions.