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Accounting for The Full Cost of Electricity (News Release)

The market price of generating electricity doesn't necessarily account for the social and environmental impacts of its generation, says the Organisation for Economic Co‑operation and Development Nuclear Energy Agency (NEA) in its new report The Full Costs of Electricity Provision.

"What this report reveals is that the notion of "electricity cost" that we often use today, the levelised costs of electricity (LCOE), is just a part of a much bigger picture. While LCOE is a useful tool to compare the costs of baseload technologies in regulated systems, it leaves out many decisive aspects of the costs of electricity. In particular, the grid‑level system costs and the social costs that are not captured by LCOE are too important to be ignored any longer" said NEA Director‑General William D. Magwood, IV, at the report's launch.

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