▲ | tomatocracy 2 days ago | |
Solar has this problem to a much greater extent though. If you have a market where solar is >100% of demand during the day then it will be dispatching at or below $0/MWh for almost all of its life. But of course the marginal market is not the whole story. In reality solar largely receives effectively fixed prices in most markets (via CfDs or PPAs). Nuclear does the same and can also take capacity payments and sell into flexibility markets where those exist. | ||
▲ | ViewTrick1002 2 days ago | parent [-] | |
Which is shifting as that is getting saturated. In those markets renewables are built with storage now to deliver the electricity when needed. Nuclear power also used to get built with PPAs. Look at Hinkley Point C for a completely insanely expensive contract, that EDF is now looking to make to make a loss on. For Sizewell C they don’t even dare touch a fixed price contract and instead want the ratepayers to pay the construction cost in advance hoping it works out. That is how far nuclear power has fallen. PPAs between commercial entities of course also adapt to the market. To guarantee the nuclear price at daytime comes with a corresponding discount, because the ones buying the PPA know they can get what they need either way. Nuclear power also generally does not participate in ancillary markets. Too slow and inflexible with weighting too much on CAPEX. They can get capacity payments but as soon as the true need is defined in terms of how much reliable energy is needed for how long renewables with carbon neutral gas turbine based backups win. The only market civilian nuclear power wins is the ”I want to have a workforce and industry capable of building nuclear weapons and naval reactors”. Essentially a military jobs program. That may be worthwhile, but let stop pretending nuclear power actually gives a modern grid anything it need at the current costs. |