Concept and Opinion: January 28, 2023. Comparing the Levelized Cost of Energy of Solar, Nuclear, Natural Gas and Coal
The Levelized Cost of Energy (LCOE) is a measure of the overall cost of generating electricity from a particular source. It is calculated by taking the total cost of building and operating a power generation facility over its lifetime and dividing it by the total amount of electricity generated. LCOE is typically measured in dollars per megawatt-hour (MWh) and is used to compare the costs of different types of power generation.
One of the most common forms of renewable energy is solar power, which can be generated through the use of photovoltaic (PV) cells or solar thermal power plants. The LCOE for solar power can vary depending on the technology used, location, and size of the facility. However, in recent years, the cost of solar power has been decreasing rapidly due to advances in technology and economies of scale. According to the new solar plants in Mississippi, the LCOE is US$ 50.67 per MWh.
Another form of energy is natural gas, which is typically generated through the use of natural gas-fired power plants. The LCOE for natural gas can vary depending on the price of natural gas and the efficiency of the power plant. However, natural gas has a relatively low LCOE compared to other forms of power generation, and is has been measured at US$ 30.55 per MWh (Victor J. Daniel Jr. Generating Plant).
Coal, on the other hand, is a fossil fuel that is typically burned to generate electricity. Due to its high emissions and the need for costly pollution control equipment, the LCOE for coal is typically higher than that of natural gas and solar power. The LCOE for coal has been measured at US$ 43.83 per MWh (Victor J. Daniel Jr. Generating Plant).
Nuclear power plants have high capital costs and ongoing fuel costs, but also have low operating costs, making the LCOE for nuclear power to be similar to that of natural gas. It has been measured at US$ 32.10 per MWh (Grand Gulf nuclear facility)
In conclusion, LCOE is a useful tool for comparing the costs of different types of power generation. In recent years, the LCOE of solar power has been decreasing rapidly, but still being more expensive than fossil fuels and nuclear. Natural gas also has a relatively low LCOE and it is more competitive than coal. However, the LCOE of coal is typically higher than that of natural gas.
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