LCOE models: A comparison of the theoretical frameworks and key assumptions

John Foster (), Liam Wagner and Alexandra Bratanova

No 4-2014, Energy Economics and Management Group Working Papers from School of Economics, University of Queensland, Australia

Abstract: LCOE models are widely applied at national and regional levels for the energy systems design, energy generation projections and technology assessment. Although LCOE is a well developed and standard technique in the energy sector economics, authors approach model construction in different ways to ensure the model matches research tasks and data availability. The LCOE model is interdependent with the data availability – data determines the construction of LCOE model and vice-versa – LCOE model defines what data is required for calculations. However, adjustments made to the standard LCOE comes at a price of limited comparability of the outcomes from the different models. The following section introduces few well known LCOE models developed for national governments with further comparison of basic assumptions in order to determine theoretical framework and datasets to be allied in the project. The next section then will provide the results of comparative analysis of the LCOE models key assumptions, concentrating on capital costs, discount rates and technology learning curves.

Keywords: Energy Economics; Electricity Markets; Energy Policy; Renewable Energy; Levelised Cost of Energy (search for similar items in EconPapers)
JEL-codes: Q41 Q43 Q48 (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (16)

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