Applications of the levelized cost concept

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

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

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.

Original languageEnglish
Pages (from-to)1125-1148
Number of pages24
JournalJournal of Business Economics
Volume93
Issue number6-7
DOIs
StatePublished - Aug 2023

Keywords

  • Full cost
  • Levelized cost
  • Levelized cost of carbon
  • Levelized cost of energy
  • Levelized cost of energy storage
  • Levelized cost of hydrogen

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