Explain the process of calculating the levelized cost of energy (LCOE) for a solar power plant and how this metric can be used to assess the economic viability of the project.

The levelized cost of energy (LCOE) is a metric used to compare the cost of electricity generation from different sources, such as solar, wind, and fossil fuels. It represents the average cost of generating one kilowatt-hour (kWh) of electricity over the lifetime of the power plant, taking into account all costs, including capital costs, operating costs, and financing costs. The calculation process involves several steps. First, estimate the total capital costs (CAPEX) of the solar power plant. This includes costs for PV modules, inverters, land, construction, and interconnection. Second, estimate the total operating costs (OPEX) over the plant's lifetime. This includes costs for maintenance, insurance, and land lease. Third, estimate the annual energy production (AEP) of the plant over its lifetime. This can be done using performance modeling software, such as PVsyst or SAM. Fourth, determine the plant's discount rate, which represents the cost of capital. The LCOE is then calculated using the following formula: LCOE = (CAPEX + Σ(OPEX_t / (1 + r)^t)) / Σ(AEP_t / (1 + r)^t) where: CAPEX is the total capital cost, OPEX_t is the operating cost in year t, AEP_t is the annual energy production in year t, r is the discount rate, and t is the year. The LCOE is used to assess the economic viability of the project by comparing it to the electricity price that the plant can sell its power for. If the LCOE is lower than the electricity price, the project is likely to be economically viable. The LCOE can also be used to compare the competitiveness of solar power to other sources of electricity generation. A lower LCOE indicates that solar power is more cost-competitive. The LCOE allows decision-makers to compare projects with different lifespans.