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smopecakes's avatar

The market inefficiency faced by the next five AP-1000 builders is such a big issue. If the capex of the next one is $8500/kW and falls by 15% for each down to $5000 then the 'gifted' learnings recieved by reactors 2-10 total to $23B dollars

The only moving nuclear projects in North America are the BWRX-300 SMRs in Ontario and by the TVA. In both cases they have a special incentive to get in early and recieve supply chain benefits that they can realize from building components for future builds

Cost overrun insurance is task number one in my opinion. Even if an AP-1000 buildout got moving without it the simple fairness of creating a project insurance mechanism to compensate the first to Nth of a kind builders for their risk and arguably for their learnings costs is undeniable. The vast size of the market inefficiency justifies a departure from idealized concepts of private markets even for those who believe in them

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TMacro06's avatar

So well written and thoughtful, thank you.

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