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> Okay, and if people are selling wind or solar at 30% of the price, why would anyone pay to the nuclear plant? You do both. Energy companies can get secured
by lettergram 4y ago
> Okay, and if people are selling wind or solar at 30% of the price, why would anyone pay to the nuclear plant?
You do both.
Energy companies can get secured loans for low rates. They can take a massive loan and do both, historically for 3-7% interest. They can immediately start charging for the loan, plus interest.
The more power they have (and if the equipment lasts long enough) they can reduce the overall cost per watt to generate, while paying off their loan.
In other words, they end up building endless capacity. Eventually prices come down and they make more money on the ride.
- dale_glass 4y ago> You do both. Do both what? My question is, if it's daytime, the sun is shining, and there's a solar provider selling power cheaper than nuclear, why would a rational person buy any nuclear power at all at that point in time? > Energy companies can get secured loans for low rates. Not for nuclear, or there'd be more of it! Think of it, you're a bank and considering the case of a USD $9B loan that nuclear plant's owner will pay off in 20-30 years if everything goes well. And if it doesn't? 30 years is a very long time, especially with renewables now quickly being built. If you have $9B to work with there's a lot of alternative business plans that don't involve putting all of it into a single piece of infrastructure that may not ever make a profit.