Clean Energy Experts Say It’s Time To Move Beyond LCOE - CleanTechnica

A recent report from the Clean Air Task Force (CATF) argues that the Levelized Cost of Electricity (LCOE), long used as the primary metric for comparing clean energy technologies, is now insufficient for guiding investment and policy decisions in today’s rapidly evolving energy landscape. While LCOE is simple and standardized, it fails to capture critical system-level costs such as grid integration, storage, curtailment, and reliability challenges associated with variable renewable energy sources like wind and solar. As electrification and peak demand grow, relying solely on LCOE risks misdirecting investments, delaying decarbonization, and increasing long-term energy costs. The report highlights the value of clean firm power technologies—such as advanced nuclear, geothermal, long-duration storage, and carbon-capture-equipped combustion—that provide reliable, on-demand electricity regardless of weather or time. For example, Ontario’s approval of a small modular nuclear reactor (SMR) project demonstrates that despite a higher LCOE, clean firm power