Since 2010, E3 has regularly created and released formal public databases and calculations of levelized costs for its clients. In the Western U.S., E3 analysis of resource costs has supported public planning processes of the WECC Transmission Expansion Planning and Policy Committee and the California Public Utilities Commission, for example. This analysis is conducted through E3’s in-house analytical tool, known as Recost.
Recost is a discounted cash flow model used to calculate the levelized costs of different candidate resources, from the present through 2050. Given a set of technology- or project-specific assumptions for system performance and operations, upfront and ongoing costs, and financing parameters, Recost computes levelized cost metrics, such as the levelized fixed cost (LFC, $/kW-yr) and levelized cost of electricity (LCOE, $/MWh). Ultimately, the results from the Recost levelized cost calculation are used in a wide array of electricity system planning models, including—but not limited to—capacity expansion modeling, market price forecasting, procurement strategy and bid evaluation, and electrolytic fuel cost estimation.
The technologies modeled in Recost include, but are not limited to:
- Utility-scale solar photovoltaic (PV) systems
- Commercial and residential behind-the-meter (BTM) solar PV
- Onshore wind
- Offshore wind (fixed-bottom and floating)
- Utility-scale lithium-ion battery storage
- BTM lithium-ion battery storage
- Long-duration energy storage (LDES) technologies
- Pumped storage hydro
- Geothermal
- Biomass
- Natural gas combustion turbines (CT), combined cycle gas turbines (CCGT), and reciprocating internal combustion engines (RICE)
- CCGT units equipped with carbon capture and storage (CCS), including new builds and retrofits
- Hydrogen production, storage, transport, and conversion, including CCGTs, CTs, and fuel cells
- Nuclear small modular reactor (SMR) and pressurized water reactor (PWR) units
The key inputs and outputs of Recost are illustrated below.
Summary of E3 Recost Inputs and Outputs
Summaries of E3’s most recent forecasts for the Levelized Cost of Energy (LCOE) and Levelized Fixed Costs are illustrated below. These reflect E3’s forecasts as of Q4 2024.
Find more details and a sample summary report here. The sample model is available to review upon request.
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