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Applications of the levelized cost concept

Günther Friedl, Stefan Reichelstein, Amadeus Bach, Maximilian Blaschke, Lukas Kemmer

2023Journal of Business Economics16 citationsDOIOpen Access PDF

Abstract

Abstract Levelized cost is a life-cycle cost measure that aggregates investment expenditures and operating costs into a unit cost figure. So far, most applications of this concept have originated in relation to energy technologies. This paper describes the role of the levelized cost concept in cost accounting and synthesizes multiple research streams in connection with electricity, energy storage, hydrogen and carbon capture. Finally, we sketch multiple potential future applications of the levelized cost concept.

Topics & Concepts

Cost of electricity by sourceSketchInvestment (military)Unit (ring theory)Unit costEnvironmental economicsEnergy costRelation (database)Computer scienceRisk analysis (engineering)EconomicsBusinessElectricity generationPower (physics)MicroeconomicsMathematicsAlgorithmQuantum mechanicsDatabaseMathematics educationPoliticsPolitical sciencePhysicsLawGreen IT and SustainabilityCarbon Dioxide Capture TechnologiesHybrid Renewable Energy Systems
Applications of the levelized cost concept | Litcius