An Evaluation of Electricity System Technology Competitiveness Metrics: The Case for Profitability

Matthew Mowers; Trieu Mai

doi:10.1016/j.tej.2021.106931

An Evaluation of Electricity System Technology Competitiveness Metrics: The Case for Profitability

Matthew Mowers, Trieu Mai

Strategic Energy Analysis Center

Consultant

Research output: Contribution to journal › Article › peer-review

9 Scopus Citations

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.

Original language	American English
Article number	106931
Number of pages	9
Journal	Electricity Journal
Volume	34
Issue number	4
DOIs	https://doi.org/10.1016/j.tej.2021.106931 https://doi.org/10.1016/j.tej.2021.106931
State	Published - May 2021

Bibliographical note

Publisher Copyright:
© 2021 Elsevier Inc.

NREL Publication Number

NREL/JA-6A20-75465

Keywords

Competitiveness metrics
Electricity technology competitiveness
Levelized cost of electricity
Profitability
Renewable energy
System value

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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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.",

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AB - 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.

KW - Competitiveness metrics

KW - Electricity technology competitiveness

KW - Levelized cost of electricity

KW - Profitability

KW - Renewable energy

KW - System value

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DO - 10.1016/j.tej.2021.106931

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An Evaluation of Electricity System Technology Competitiveness Metrics: The Case for Profitability

Abstract

Bibliographical note

NREL Publication Number

Keywords

UN SDGs

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