An evaluation of electricity system technology competitiveness metrics: The case for profitability

Abstract

In this work we develop standardized functional forms for electricity technology competitiveness metrics and show how the mathematical relationship between value and cost can affect the robustness of the metric. We make the case to replace established metrics with economic profitability metrics – including a new profitability-based adjustment to LCOE. These profitability metrics are shown to be more robust for evaluating technology competitiveness by keeping comparisons on an equivalent monetary basis.