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LCOE

Electricity Shortages and What to Do About It

By Energy Rant No Comments
Some folks pin excessive weight on the federal government’s influence over our efficiency and load management industries. Even though billions/trillions of dollars are allocated through the “Inflation Reduction Act” and “Bipartisan Infrastructure Law,” those funds are fleeting. What’s more enduring? Rising electricity prices and load-balancing authorities are pushing for more baseload generation and transmission-line construction – things that are always met with stiff resistance by state and local governments and stakeholder groups. Utility Dive recently reported that electricity prices outpaced the broader U.S. consumer price index. Well, gee, why would this happen? Have fuel prices increased? No. You’d think electricity prices…
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Image shows graphic of a bike, car and a plane.

Planes, Bikes, Automobiles, and the Deceptive LCOE

By Energy Rant No Comments
Lazard recently released its 16th levelized cost of energy or LCOE report. The LCOE represents the total cost of generating (or storing) electricity over the asset’s life divided by the total MWh or kWh delivered. The total cost includes construction, land, operations, maintenance, fuel, interest, etc. Questionable Comparisons The LCOE can be misleading, it's like comparing the levelized cost of transportation (LCOT) of a bicycle, automobile, and passenger jet. The LCOE only applies when comparing automobiles against automobiles, bikes against bikes, etc., for obvious reasons. Similarly, LCOE for electricity storage is mostly reasonable. However, comparing LCOE of renewable power generation…
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