Glossary of Terms

The upfront money spent to buy, build, or upgrade physical assets (like solar panels, turbines, or transformers). In clean energy, CapEx typically dominates the total cost structure.

The ratio of the electrical energy actually produced by a generating unit for the period of time considered to the electrical energy that could have been produced at continuous full power operation during the same period. (e.g., A 100 MW wind farm operating at a 40% CF produces 40 average MW over the year).

The deliberate reduction in power output below what could have been produced. This happens when supply exceeds demand, or when transmission lines are congested and cannot carry the power to where it is needed.

A metric that represents the average net present cost of electricity generation for a generating plant over its lifetime. It is used to compare different methods of electricity generation on a consistent basis.

The ongoing cost for running a product, business, or system. For fossil plants, this is dominated by fuel costs. For renewables, it consists mainly of maintenance and land leases.

Renewable energy sources that are non-dispatchable due to their fluctuating nature, primarily wind and solar power.