Definition
LACE (Levelized Avoided Cost of Energy) is the value of energy avoided by deploying new generation — typically the marginal cost of energy displaced from the system. LCOE < LACE means the project is economic vs. grid alternatives.
Key Takeaways
- LACE = value of energy avoided by new generation.
- LCOE < LACE → project economic.
- Used in policy and integrated resource planning.
- EIA publishes LCOE and LACE benchmarks annually.
- Different from LCOE (cost) — LACE measures value.
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