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While I'm not a practicing economist, I have a bachelor's degree in economics and took multiple classes on the economics of electricity markets. While all of t
by foota 3y ago
While I'm not a practicing economist, I have a bachelor's degree in economics and took multiple classes on the economics of electricity markets.
While all of those are certainly relevant if you're comparing nuclear and other sources of power, I fail to see how that's relevant to the question of whether there's a significant difference between 80 and 95% capacity factor over a year.
- hef19898 3y agoNow imagine you are working in controlling at a power plant operator, and your yearly generated output is 5% lower that whatever plan has before. What do you think would happen? - investors, management and board saying "no biggy, 5% is not relevant" - something else Companies are doing restructuring and mass lay-offs to save less than 5% on bottom line costs, they are incredibly happy when the top line grows by 5% and worried, if not in crisis mode, if the top line declines by 5%. And for the financing part of a new power plant, those 5% are the difference between the investment being a good or a bad one...
- cycomanic 3y agoHold on you are an economist and are telling me the difference between a capacity factor of 95 and 85% is not relevant? What do you think the ROIs and margins are for nuclear investments? Considering that nuclear is almost completely dominated by upfront investment, I'd be surprised if the that difference is not the difference between comfortably making a profit on your investment and loosing a large amount of money.