Energy Intelligence's levelized cost of energy (LCOE) calculations are based on a proprietary financial model that produces a break-even price for electricity delivered to the grid. This covers capital, operating, fuel and carbon costs over the lifetime of a project, excluding system costs such as grid connection and backup generation, as LCOEs are calculated at the power plant's gate. They also disregard externalities such as pollution or health impacts because, in most cases, they are incurred to society without being fully paid for by power generators.