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PGE will finance it on-balance sheet, the way they would a coal plant. Most likely there will be US export finance for the elements coming from the US but most
by Mvandenbergh 3y ago
PGE will finance it on-balance sheet, the way they would a coal plant. Most likely there will be US export finance for the elements coming from the US but most spend on big nuclear plants is local.
>The recent nuclear plants constructed in the west requires something like $5-15B above the market price in subsidies, of course depending on size, EPR at 1600 MWe or AP1000 at 1000 MWe. Would be interesting to know how they intend to solve that.
I'm not really clear what this means? All power plants require financing for their construction cost which is pretty definitionally the market cost of construction. If you mean how this will will interface with the Polish electricity wholesale market, well that market is already pretty dominated by a few large vertically integrated players settling trades with themselves. Presumably PGE will buy the electricity and treat it the same as their other electricity, they may receive a subsidy per MWh as well or maybe just avoiding the ETS costs of their current coal emissions will be enough to make the economics stack-up.
- Gwypaas 3y ago> I'm not really clear what this means? All power plants require financing for their construction cost which is pretty definitionally the market cost of construction. It is hard to finance a plant when you will on average sell the power at a loss. The money has to come from somewhere.
- Mvandenbergh 3y agoThe Polish wholesale power price is above even what nuclear power costs to deliver in higher-cost UK and US markets on an LCOE basis (not that LCOE is a great way of comparing power costs but there it is).
- Gwypaas 3y agoYou have to differentiate between paid off nuclear plants nearing end of life and new built ones. Take for example Hinkley Point C, that costs €0.15 per kWh for the consumers. How does that compare? https://en.m.wikipedia.org/wiki/Hinkley_Point_C_nuclear_power_station https://en.m.wikipedia.org/wiki/Hinkley_Point_C_nuclear_powe...