Cost of electricity by source

The distinct ways of electricity generation can incur significantly different costs. Calculations of these costs can be made at the point of connection to a load or to the electricity grid. The cost is typically given per kilowatt-hour or megawatt-hour. It includes the initial capital, discount rate, as well as the costs of continuous operation, fuel, and maintenance. This type of calculation assists policymakers, researchers and others to guide discussions and decision making.Source: Fraunhofer ISE (2018) – Stromgestehungskosten erneuerbare EnergienWeighted AverageNB = 'Not built' (No capacity additions are expected.)Traditional MethodTraditional MethodThe less solar power costs, the more favorably it compares to conventional power, and the more attractive it becomes to utilities and energy users around the globe. Utility-scale solar power be delivered in California at prices well below $100/MWh ($0.10/kWh) less than most other peak generators, even those running on low-cost natural gas. Lower solar module costs also stimulate demand from consumer markets where the cost of solar compares very favourably to retail electric rates. The distinct ways of electricity generation can incur significantly different costs. Calculations of these costs can be made at the point of connection to a load or to the electricity grid. The cost is typically given per kilowatt-hour or megawatt-hour. It includes the initial capital, discount rate, as well as the costs of continuous operation, fuel, and maintenance. This type of calculation assists policymakers, researchers and others to guide discussions and decision making. The levelized cost of energy (LCOE) is a measure of a power source that allows comparison of different methods of electricity generation on a consistent basis. It is an economic assessment of the average total cost to build and operate a power-generating asset over its lifetime divided by the total energy output of the asset over that lifetime. The LCOE can also be regarded as the average minimum price at which electricity must be sold in order to break-even over the lifetime of the project. While calculating costs, several internal cost factors have to be considered. Note the use of 'costs,' which is not the actual selling price, since this can be affected by a variety of factors such as subsidies and taxes: To evaluate the total cost of production of electricity, the streams of costs are converted to a net present value using the time value of money. These costs are all brought together using discounted cash flow. For power generation capacity capital costs are often expressed as overnight cost per watt. Estimated costs are: