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dc.contributor.authorAldersey-Williams, John
dc.contributor.authorRubert, T.
dc.date.accessioned2018-10-08T14:15:06Z
dc.date.available2018-10-08T14:15:06Z
dc.date.issued2018-10-15
dc.identifier.citationALDERSEY-WILLIAMS, J. and RUBERT, T. 2019. Levelised cost of energy: a theoretical justification and critical assessment. Energy policy [online], 124, pages 169-179. Available from: https://doi.org/10.1016/j.enpol.2018.10.004en
dc.identifier.issn0301-4215en
dc.identifier.urihttp://hdl.handle.net/10059/3166
dc.description.abstractAlthough widely accepted as a measure of the comparative lifetime costs of electricity generation alternatives, levelised cost of energy (LCOE) lacks a theoretical foundation in the academic literature and encompasses a number of areas where caution is important. Therefore, this paper seeks to provide a theoretical foundation by comparing the metric with alternative LCOE metrics and by undertaking a brief literature review to describe its strengths and weaknesses. In comparison with other potential measures of unit cost of energy, LCOE is found to be the preferred choice, in large part because of its widespread adoption. The weaknesses of the LCOE are found to centre on discount rate, inflation effects and the sensitivity of results to uncertainty in future commodity costs. These weaknesses are explored in the context of comparing combined cycle gas fired generation and offshore wind in the UK, based on publicly available cost measures. It is found that with variability of future fuel gas prices, and a Monte Carlo approach to modelling LCOE, the range of LCOE for CCGT is much broader in comparison to the LCOE of offshore wind. It is urged that explicit account be taken of the areas of weakness in future use of LCOE.en
dc.language.isoengen
dc.publisherElsevieren
dc.rightshttps://creativecommons.org/licenses/by/4.0en
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/*
dc.subjectLevelised cost of energyen
dc.subjectOffshore wind energyen
dc.subjectMonte Carloen
dc.subjectUncertaintyen
dc.titleLevelised cost of energy: a theoretical justification and critical assessment.en
dc.typeJournal articlesen
dc.publisher.urihttps://doi.org/10.1016/j.enpol.2018.10.004
dcterms.dateAccepted2018-10-07en
dcterms.publicationdate2019-01-31
refterms.accessExceptionNAen
refterms.dateDeposit2018-10-08en
refterms.dateFCA2018-10-15en
refterms.dateFCD2018-10-08en
refterms.dateFreeToDownload2018-10-15en
refterms.dateFreeToRead2018-10-15en
refterms.dateToSearch2018-10-15en
refterms.depositExceptionpublishedGoldOAen
refterms.panelCen
refterms.technicalExceptionNAen
refterms.versionVoRen
rioxxterms.publicationdate2018-10-15
rioxxterms.typeJournal Article/Reviewen
rioxxterms.versionVoRen


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