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Experience Curve Cost Projection Tool

An open-source Python framework for projecting future technology costs of renewable energy technologies using experience curves. The tool provides transparent and parameterizable models for calculating the Levelized Cost of Electricity (LCOE) and Levelized Cost of Storage (LCOS) of different technologies and enables long-term cost projections for use in Energy System Optimization Models (ESOMs).


Overview

Planning future energy systems requires reliable assumptions about the costs of emerging technologies. While many energy system models include techno-economic parameters, transparent and reproducible methods for projecting future technology costs are often lacking.

This project addresses this challenge by providing an open-source framework that

  • projects future technology costs using experience curves,
  • calculates technology-specific LCOE and LCOS,
  • allows easy modification of technical and economic assumptions,
  • enables scenario and sensitivity analyses, and
  • provides transparent and reproducible cost projections.

Although originally developed using Austria-specific data, the framework is fully parameterizable and can easily be adapted to other countries or regions.


Supported Technologies

Currently, the tool supports:

  • ☀️ Photovoltaic (Utility-scale)
  • 🏠 Photovoltaic (Residential)
  • 🌬️ Onshore Wind Power
  • 🔋 Lithium-Ion Battery Energy Storage Systems (BESS)
  • ⚡ Vanadium Redox Flow Battery (VRFB)

Additional technologies can easily be integrated.


Features

  • Experience curve based cost projections
  • One-factor, two-factor and multi-factor learning models
  • Technology-specific LCOE and LCOS calculations
  • Modular and parameterizable architecture
  • Support for scenario analysis
  • Sensitivity analysis of technical and economic parameters
  • Transparent input data structure
  • Publication-quality plots
  • Export of results for further analysis

Cost Models

The framework implements technology-specific cost models for:

Photovoltaics

  • Module costs
  • Inverter costs
  • Balance of System (BoS)
  • Performance degradation
  • Inverter replacement
  • Operating costs

Wind Power

  • CAPEX
  • OPEX
  • Capacity factor
  • Lifetime
  • Discount rate

Battery Energy Storage Systems

  • Investment costs
  • Charging costs
  • Round-trip efficiency
  • Cycle degradation
  • Operating costs
  • Residual value

Methodology

Future technology costs are estimated using experience curves, which describe the reduction in costs as cumulative installed capacity increases.

The framework supports

  • One-Factor Experience Curves (OFEC)
  • Two-Factor Experience Curves (TFEC)
  • Multi-Factor Experience Curves (MFEC)

allowing additional explanatory variables (e.g. material prices or innovation indicators) to improve projection accuracy.


Typical Workflow

  1. Import technology-specific input data.
  2. Define technical and economic assumptions.
  3. Configure experience curve parameters.
  4. Calculate current LCOE/LCOS.
  5. Project future costs.
  6. Perform sensitivity analyses.
  7. Export tables and figures.

Project Structure

├── data/               # Input data
├── models/             # LCOE / LCOS models
├── experience_curves/  # Experience curve implementations
├── scenarios/          # Scenario definitions
├── results/            # Generated figures and tables
├── notebooks/          # Example Jupyter notebooks
├── plots/              # Plotting utilities
└── main.py

Example Applications

The tool can be used for

  • Energy system optimization
  • Capacity expansion planning
  • Renewable investment analysis
  • Long-term technology assessments
  • Academic research
  • Scenario analysis
  • Teaching

Requirements

  • Python 3.10+
  • NumPy
  • Pandas
  • SciPy
  • Matplotlib
  • Plotly (optional)

Install dependencies using

pip install -r requirements.txt

Citation

If you use this tool in academic work, please cite:

Ertl, C. (2025). A model of technological learning for low-carbon energy technologies in the Austrian power sector. Master's Thesis, Graz University of Technology.


License

This project is released under the MIT License.


Contributing

Contributions are welcome!

Feel free to

  • report bugs,
  • suggest new features,
  • improve documentation,
  • add new technologies, or
  • submit pull requests.

Contact

Institute of Electricity Economics and Energy Innovation (IEE)

Graz University of Technology

For questions or suggestions, please open an issue on GitHub.

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Open-source Python framework for projecting future PV, wind, and battery storage costs using experience curves and parameterizable LCOE/LCOS models for energy system optimization.

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