EIA uses two simplified metrics to show future power plants’ relative economics

EIA’s long-term outlook for the electric power sector considers both the cost to build and operate power plants as well as the value those plants provide to the grid. A supplemental report to EIA’s Annual Energy Outlook 2018 (AEO2018) describes two simple measures of cost and value to show how certain technologies can be compared to determine the most economically attractive technologies, and in turn, the types of power plants most likely to be built.