A New Approach for Calculating the LCOE Constant

Discounting in the cost-benefit analysis depends on the future market situation and cannot be freely adopted on the basis of economic considerations related to the choice of the discount rate only. The chosen form of the discount function is more important and has to be adjusted to the future cost fluctuation scenario. We present a new method for calculating the LCOE constant, where the discount rate is uniquely defined by future market conditions. As an example, we consider three cases of an offshore wind farm planned in the Baltic Sea with a capacity of 1 [GW] for the different costs fluctuation scenarios