LCOE

CAPEX: what it is and what it includes in a renewable energy project

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Representative image of CAPEX showing money in the foreground and a renewable energy installation in the background

CAPEX is the initial investment required to develop, construct and commission an energy project. In the energy sector, it includes equipment, civil engineering works, electrical infrastructure, engineering and other capital costs essential to the asset’s viability.

LCOE: what it is and how the levelised cost of energy is calculated

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A calculator, euros and an electric cable to illustrate the calculation of the LCOE and the cost of energy

The LCOE, or levelled cost of energy, enables the average cost of generating electricity over the lifetime of a facility to be estimated. Find out how it is calculated and which variables influence the LCOE of an energy project.