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Nuclear power plants are most profitable when run at full capacity. They have massive sunk costs, but the marginal cost is low. At a grid level you certainly
by 7952 6y ago
Nuclear power plants are most profitable when run at full capacity. They have massive sunk costs, but the marginal cost is low. At a grid level you certainly can change output based on demand. But the markets may need to be adjusted to keep them profitable through mechanisms like a capacity market. Or by finding new uses for the power such as making hydrogen.
With peaker plants fuel costs are a factor, but also the cost of the machine. An old fashioned reciprocating engine maybe the cheapest as a last resort that is only used when other peakers are already utilized. Fuel efficiency becomes more important as the plant is more utilized.
- bluGill 6y agoThe markets already adjust. I work for a company that melts iron in one factory. This uses a ton of energy, but we work with the power company and so we get discounts for only melting iron at night (when power is cheap). I'm pretty sure that we shut down for regular maintenance based on input from the power company (either they are shutdown for maintenance themselves, or they are expecting a big load)