LCOE
Levelized Cost of Energy
Lifetime cost of electricity generation divided by total MWh produced, in $/MWh. LCOE for nuclear: $70-90/MWh per Lazard 2023.
Calculates capital, O&M, fuel, and decommissioning costs discounted over 40-60 years. Nuclear LCOE competitive with gas at high capacity factors; SMRs target $50-60/MWh. Excludes system integration costs.
Why it matters now
LCOE benchmarks nuclear viability in 2025-2026 PPAs, favoring baseload vs. renewables. Influences investor focus on SMRs and restarts amid data center demand.