Levelised Costs

Allow control for generating representative future discounted costs. Discounted like net present value (alternative term: Net Present Cost of Energy).

What are Levelised Costs?

Levelised cost gives a summary of the lifetime costs of energy for an installation, this considers the cost of purchasing and maintaining an asset over time. Formula:

$$LevelisedCosts=\frac{Sumofcosts}{Energyproduction}=\frac{\sum \ast {}^{}t=1^n\frac{It+Mt+Ft}{(1+r{)}^t}}{\sum \ast {}^{}t=1^n\frac{Et}{(1+r{)}^t}}$$

Discount rate: r chosen in Cost Analysis Parameters Lifetime: n based on Start/End year. Costs: It - Investment, Mt​ - Operational & maintenance - Ft - Fuel based on the Profit & Loss Entries & Assets selected.

Creating a Levelised Cost

Navigate to scenario. Select Levelised Costs page. Select Create New Levelised Cost Entry. Details: Name and optional description. Select Installation Output:

• Source Installation: Select relevant installation.
• Selected Source Installation Output: Select output parameter.

• Cost Analysis Parameters:
• Discount Rate: Compounding year on year discount rate.
• Start & End Year: Period for filter to apply.

• Costs & Investments: Add costs service value will be discounted by.

• Investments: Add the asset cost as an investment

On the Reports page, select the scenario and the Levelised Cost report, this will show the output for the calculation as the Value of cost per kWh created.