Profit analysis of nuclear power energy storage and photovoltaics

What is the economics of nuclear power?

The economics of nuclear power involves consideration of several aspects: Capital costs, which include the cost of site preparation, construction, manufacture, commissioning and financing a nuclear power plant.

Do investors underestimate the value of energy storage?

While energy storage is already being deployed to support grids across major power markets, new McKinsey analysis suggests investors often underestimate the value of energy storage in their business cases.

Why is nuclear power a good investment?

It takes into account the financing costs of the capital component (not just the 'overnight' cost). On a levelized (i.e. lifetime) basis, nuclear power is an economic source of electricity generation, combining the advantages of security, reliability and very low greenhouse gas emissions.

Is energy storage a profitable business model?

Although academic analysis finds that business models for energy storage are largely unprofitable, annual deployment of storage capacity is globally on the rise (IEA, 2020). One reason may be generous subsidy support and non-financial drivers like a first-mover advantage (Wood Mackenzie, 2019).

How much does a nuclear power plant cost?

The OECD Nuclear Energy Agency’s (NEA's) calculation of the overnight cost for a nuclear power plant built in the OECD rose from about $1900/kWe at the end of the 1990s to $3850/kWe in 2009.

How does capital cost affect a nuclear power project?

The cost of capital is typically a key component of the overall capital cost of nuclear power projects. Over a long construction period, during which there are no revenue streams from the project, the interest on funds borrowed can compound into very significant amounts.