LCOE allows for comparison across technologies, but it ignores two of the key characteristics for generation assets:
-Dispatchability Natural gas plants can provide firm power, wind and solar plants cannot. LCOE also ignores the capacity payments that are associated with operating a firm generating asset
-Generation Time-of-Day (TOD) LCOE doesn’t consider the time of day when the power is generated. This can be a significant driver of profitability as many PPAs include TOD factors which determine the effective revenue earned per