One of the first Advanced Nuclear Power Plants (NPPs), the BWRX-300 Small Modular Reactor (SMR) will commence operation in 2027 and should become available in the UK by 2030 requiring a capital investment of £587 million (2020).
The second significant cost is O&M. The National Renewable Energy Laboratory (NREL) in the USA predicts a 2020 cost of $10.5/kW/yr. At the 'Long Term' exchange rate of £1.00 = US$1.15 that equates to £9.13/kW/yr. For 350 MW of installed capacity, that's a total cost over 40 years of £127.82 million. The O & M cost content works out at £9.13/MWh.
NREL Operation and Maintenance (O & M) Costs
The third significant cost is fuel and since it is stated frequently that this is 'free energy' the fuel cost content is £0.00/MWh.
The fourth and final significant cost is decommissioning. An Oct 2017 RFF Report gives a cost for decommissioning a 300 MW US Solar PV Project at $45,976/MW. That's $16.09 million for 350 MW Cleve HIll. Using 2017 exchange rate and adding in UK inflation brings it to £13.0 million This Decommissioning cost content is £0.93/MWh.
RFF Report. P.36; Table 9.
The significant cost total is £40.35/MWh. Which, when applied to the 14 million MWh generated is £564.9 million.
It is then possible to ascertain all of the remaining costs: Fuel fabrication; O&M; waste fund; decommissioning fund - from an analysis of Hinkley Point C npp. All of these costs add up to €23.00/MWh in 2018. Factor in the 2018 € to £ exchange rate and UK inflation to 2020 and this significant cost is £25.10/MWh
Pie Chart: Hinkley Point C nuclear power plant
The significant cost total is £29.23/MWh - but that is for a capital investment of £587 million. So a capital investment of £424 million would fund 102.5 million MWh (72%) of the total 142.0 million MWh. When applied to 102.5 million MWh the cost is £3.00 billion.
Thinking in terms of a Wholesale Electricity Price of £50.00/MWh, by 2063, after a 40 years lifespan of economical operation, Cleve Hill will have generated an income of £700.0 million, with significant costs of £564.9 million. That's a potential for dividend payments from earnings of £135.1 million.
Working out at £0.29 for every £1.00 of capital invested.
Meanwhile, it is reasonable to assume the Pension Fund Manager holding onto his £424 million until 2030 would probably have partaken of 'opportunity earnings'. Then by 2030, the £424 million invested in advanced npps starts earning on the Wholesale Market.
But it will carry on for another 27 years of economical operation to reach £2.13 billion
Working out at £4.49 for every £1.00 of capital invested (15.5X more).