Assessment of the levelized cost of energy using a stochastic model

Nacef Tazi, Fatemeh Safaei and Faicel Hnaien

Energy, 2022, vol. 238, issue PB

Abstract: The levelized cost of energy (LCOE) is a widespread metric that doesn't disfavor any power generation or saving technology. In this paper, a stochastic model of the LCOE is provided. The proposed model includes all main parameters to be applied on renewable, non-renewable and energy saving systems. These parameters were modeled through non-homogeneous Poisson process as well as Weibull functions. Besides, a continuous optimization model is proposed to calculate the optimal LCOE under the constraints of main Capex/Opex expenditures. Under such conditions, the optimal value of the levelized cost of energy is obtained, which captures parameters' influence on this metric. Afterwards, these parameters' influences on the LCOE were assessed through a sensitivity analysis.

Keywords: Levelized cost of energy; LCOE; Stochastic model; Non-homogeneous Poisson process; Optimization; Energy generation; Energy storage (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:238:y:2022:i:pb:s0360544221020247

DOI: 10.1016/j.energy.2021.121776

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