Monday, September 5, 2011

Levelized Revenue of Electricity (LROE) - Part 2

In part 1 of this post, we introduced a new concept for comparing the revenue from different energy sources and markets, called the levelized revenue of electricity (LROE). In part 2, we show some specific calculations of the LROE for solar. We show that in some markets the incentives are set properly to encourage growth in solar by having LROE>LCOE. Other markets, however, don't provide enough incentives, thus LROE<LCOE.