December 18, 2025
Rising electricity demand, growing reliability pressures and deeper renewable penetration are exposing the limitations of cost-only metrics such as Levelized Cost of Energy (“LCOE”). This paper introduces a value-based framework using two new and complementary measures: Levelized Value of Energy (“LVOE”), which reflects the total value a project can create for its owners, and Levelized Net Benefit (“LNB”), which quantifies the broader value a project can deliver to the overall system. We applied this framework to contrast comparably sized advanced nuclear and solar projects in two separate U.S. power markets – which showed that nuclear, despite a higher LCOE, delivers substantially greater owner and system value. The resulting value difference highlights nuclear’s unpriced contribution to system reliability, fuel savings and long-term cost containment. The findings also challenge the common narrative that nuclear is an expensive option when other, lower-cost solutions are available.
