Levelized Cost of Energy (LCOE) Template Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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Levelized Cost of Energy Template (LCOE)

Assumptions (in '000s)
Initial Investment Cost ($) 1,500
Operations and Maintenance Costs ($) 100
O&M Growth Rate (%) 2.00%
Annual Fuel Costs ($) -
Annual Electricity Output (kWH) 3,000
Project Lifespan (years) 10
Discount Rate (%) 8.00%
Entry Date 12/31/2018

Total Costs Entry Construction Operations Operations

Date 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Year Frac (From Start Date) 1 2 3

Initial Investment 1,500 - - -

O&M Costs - - 100 102
Fuel Costs - - - -
Discount Factor 92.6% 85.7% 79.4%
Present Value of Costs 1,500 - 86 81
NPV of Total Costs $2,121

Total Energy Output Entry 1 2 3

Yearly Output - - 3,000 3,000
Discount Factor - 92.6% 85.7% 79.4%
Present Value of Costs - - 2,572 2,381
NPV of Total Output 17,352 kWH

LCOE $0.12/kWH

This file is for educational purposes only. E&OE

Corporate Finance Institute®

https://corporatefinanceinstitute.com/
Operations Operations Operations Operations Operations Operations Operations
12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028
4 5 6 7 8 9 10

- - - - - - -
104 106 108 110 113 115 117
- - - - - - -
73.5% 68.1% 63.0% 58.3% 54.0% 50.0% 46.3%
76 72 68 64 61 57 54

4 5 6 7 8 9 10
3,000 3,000 3,000 3,000 3,000 3,000 3,000
73.5% 68.1% 63.0% 58.3% 54.0% 50.0% 46.3%
2,205 2,042 1,891 1,750 1,621 1,501 1,390