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Comment by crote

> Except turning off when prices are too low for too long

Even that is unlikely. Most nuclear power plants operate with a "strike price": they negotiate a fixed price, and the government makes up the difference between that fixed price and the actual market price.

For example, Hinkley Point C in the UK has negotiated a strike price of about €160/MWh. When the market trades at €100/MWh, the taxpayers will pay them an additional €60/MWh for every unit they produce. To make it even worse: the contract is for every unit they could produce. If the reactor is technically able to generate power but the grid operator, for whatever reason, decides to source it elsewhere, the taxpayers are still on the hook for €160/MWh for every MWh the reactor could've generated but didn't.

The result of this is that reactors aren't turned off when the prices go low and will always be the last to get throttled down. Low grid demand? The expensive reactor will keep running at full blast, it'll be the dirt-cheap solar which gets turned off.

This is why building new nuclear is such a horrible idea from an economic perspective: you are essentially locking in those high power prices for the next ~60 years, no matter what happens. Someone could invent a magical zero-point energy warp drive and provide us with unlimited free power, and we'd still be paying for those nuclear power plants!

Want to build additional nuclear? First convince an investor to take the risk and operate on the free market, don't come begging the government for a giant guaranteed-profit handout.

parent crote 14 days ago

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