3 ms·

Hinkley Point C another EPR is right in that range with the fixed strike price being paid by the consumers at £106 per MWh, or $0.140 per kWh. The nice thing ab

Hinkley Point C another EPR is right in that range with the fixed strike price being paid by the consumers at £106 per MWh, or $0.140 per kWh. The nice thing about nuclear and average prices is that unless nuclear is ran at about 100% all the time your initial investment takes even longer to pay back, so comparing directly to a yearly average price fits their use case. EDF has negotiated a guaranteed fixed price – a "strike price" – for electricity from Hinkley Point C of £92.50/MWh (in 2012 prices),[25][83] which will be adjusted (linked to inflation – £106/MWh by 2021[77]) during the construction period and over the subsequent 35 years tariff period. The base strike price could fall to £89.50/MWh if a new plant at Sizewell is also approved.[25][83] High consumer prices for energy will hit the poorest consumers hardest according to the Public Accounts Committee.[86] In July 2016, the National Audit Office estimated that due to falling energy costs, the additional cost to consumers of 'future top-up payments under the proposed HPC CfD had increased from £6.1 billion in October 2013, when the strike price was agreed, to £29.7 billion'.[87][88] In July 2017, this estimate rose to £50 billion, or 'more than eight times the 2013 estimate'.[9] https://en.wikipedia.org/wiki/Hinkley_Point_C_nuclear_power_station#Cost_to_consumers https://en.wikipedia.org/wiki/Hinkley_Point_C_nuclear_power_...

doikor 5y ago
Again none of the electricity from OL3 is sold directly to consumers so there is no strike price to think about. Instead the investors pay whatever the "at cost" price happens to be to run the plant. Also TVO does not have that much debt as most of the money for the reactor came from the investors (debt they took not TVO) Also the current price for the plant is 5.7 billion euros (in the last "official" statement from TVO). It might go up to 7 to 8 billion after the lawsuits etc. Basically the plant was built at fixed cost contract with the builders (Areva and Siemens) taking a huge hit but that is not TVOs problem. The biggest investors in OL3 are paper companies more interested in some guaranteed max price than paying the least by getting as much of their electricity from their own production (the nuclear plants by TVO, their own hydro, etc). Basically they want to be able to say 1 year in advance that paper/paperboard will cost X without taking a huge hit when fulfilling their contracts due to electricity price jumping up. If they happen to find cheaper electricity from somewhere else then it is just a happy accident and more profit for them. Basically OL3 got built as the investors were so happy with the previous 2 reactors at the site so I would think they know how to do it in a profitable way.

doikor 5y ago

Again none of the electricity from OL3 is sold directly to consumers so there is no strike price to think about. Instead the investors pay whatever the "at cost" price happens to be to run the plant. Also TVO does not have that much debt as most of the money for the reactor came from the investors (debt they took not TVO) Also the current price for the plant is 5.7 billion euros (in the last "official" statement from TVO). It might go up to 7 to 8 billion after the lawsuits etc. Basically the plant was built at fixed cost contract with the builders (Areva and Siemens) taking a huge hit but that is not TVOs problem. The biggest investors in OL3 are paper companies more interested in some guaranteed max price than paying the least by getting as much of their electricity from their own production (the nuclear plants by TVO, their own hydro, etc). Basically they want to be able to say 1 year in advance that paper/paperboard will cost X without taking a huge hit when fulfilling their contracts due to electricity price jumping up. If they happen to find cheaper electricity from somewhere else then it is just a happy accident and more profit for them. Basically OL3 got built as the investors were so happy with the previous 2 reactors at the site so I would think they know how to do it in a profitable way.