This document constitutes Deliverable 8.2 of the LiftWEC project and consists of the description of the parametric cost model that will be used in this project to calculate the levelized cost of energy of the LiftWEC concept. A literature review has been performed to compile the different cost models found in the literature. The document is divided into four sections. After a brief introduction, the first section concerns the state-of-the-art for cost models. The parametric cost model developed for this project is described in the second section. The following section introduces the software code where the parametric cost model has been implemented, including a description of the main features of the COE Calculation Tool (the selected software). A discussion driven by the development strategy of the LiftWEC project is concluding the report.