What is LCOE useful for as an investor?

Financial Metrics

LCOE is the average cost of generating each kWh over the project's life, including CAPEX, OPEX and the discount rate. It exists for comparison: if LCOE is below the host user's tariff or the spot price, the project has an economic edge.

For the investor: a low LCOE signals an efficient design and a sounder margin. It is one of the figures worth looking for on the project sheet.

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What is LCOE useful for as an investor? | FAQ | Circular Urban