CRITICAL REVIEW OF THE LEVELISED COST OF ENERGY METRIC

M.D. Sklar-Chik, A.C. Brent, I.H. De Kock

Abstract


The purpose of this paper is to critically review the ‘levelised cost of energy’ metric used in electricity project development. This metric is widely used, because it is a simple metric to calculate the cost per unit of electricity for a given technology connected to the electricity network. However, it neglects certain key terms such as inflation, integration costs, and system costs. The implications of incorporating these additional costs would provide a more comprehensive metric for evaluating electricity generation projects, and for the system as a whole. It is therefore recommended to refine the metric for the South African context. 


Keywords


Levelized Cost of Electricity; electricity generation projects; South Africa

Full Text:

PDF


DOI: https://doi.org/10.7166/27-4-1496

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2016 The South African Journal of Industrial Engineering

ISSN 2224-7890 (on-line)

Powered by OJS and hosted by Stellenbosch University Library and Information Service since 2011.


Disclaimer:
This journal is hosted by the SU LIS on request of the journal owner/editor. The SU LIS takes no responsibility for the content published within this journal, and disclaim all liability arising out of the use of or inability to use the information contained herein. We assume no responsibility, and shall not be liable for any breaches of agreement with other publishers/hosts.

SUNJournals Help