Seems UK and French govts might have secured enough private funding to build Sizewell C by prostrating British tax- and bill-payers, ready to take all the risk on another £40B+ project that will over-run by years.
But I don't understand how Sizewell C can ever make money
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But I don't understand how Sizewell C can ever make money
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Comments
Sizewell C is to be funded by a "Regulated Asset Base" (RAB)
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But with a cost of generation presumably around £100/MWh, when wholesale electricity is around £80/MWh, will Sizewell C
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Sizewell C will rarely be "in merit" i.e. competitive against wind/solar/storage; it will just churn out MWh and nuclear waste taking whatever price it gets. Potential investors will have taken that account, loading cost
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Chances are though once investors have their loans repaid (and profit trousered) EDF will be left with a £40B+ asset that loses money if operated.
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Presumably the RAB contract will say "you must generate x TWh once it's built", otherwise I can't see why Sizewell C will generate a MWh.
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The EPR is supposed to be cheaper to run than the old reactors but I bet it isn't
By setting their own auction prices (protected by CfD/RAB topups), or deciding not to run, they would be able to push the market up or down.
Will need strong regulation to avoid abuse