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.
The most significant factor investors should consider about advanced SMRs is their build programmes are now down to 2 years - no different to an offshore wind farm. So the cost-of-capital burden that has drained investment from conventional npps is utterly negated. Comparing investments, it need not be considered a part of 'Significant Costs'.
The second significant cost is O&M. Research data is sparse, but a 2016 publication references a similar site: 800 MW Wind Farm D. The O&M cost is €75.2 million/yr. Pro rata that to 3,600 MW and factor in the 2016 € to £ exchange rate and UK inflation to 2020 and this significant cost is £17.50/MWh.
Page 6; Table 1; Wind Farm D. (2016)
The third significant cost is fuel and since it is stated frequently that this is 'free energy' the cost is £0.00/MWh.
The fourth and final significant cost is decommissioning. A research paper from DVL, a world authority on maritime affairs, settles at €400,000/MW. Factor in the 2015 € to £ exchange rate and UK inflation to 2020 and this significant cost is £2.70/MWh.
Page 9; Fig 9 (2015)
The significant cost total is £41.33/MWh. When applied to 426 million MWh is £17.61 billion.
For the Advanced NPP, the BWRX-300, the first significant cost of capital investment is £4.13/MWh.
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
The significant cost total is £29.23/MWh. When applied to 2,177 million MWh is £63.63 billion.
Pie Chart: Hinkley Point C nuclear power plant
Thinking in terms of a Wholesale Electricity Price of £50.00/MWh, by 2050, after its 25 years lifespan of economical operation, Dogger Bank will have generated an income of £21.30 billion, with significant costs of £17.61 billion. That's a potential for dividend payments from earnings of £3.69 billion.
Working out at £0.41 for every £1.00 of capital invested.
Meanwhile, it is reasonable to assume the Pension Fund Manager holding onto his £9.0 billion until 2030 would probably have partaken of 'opportunity earnings'. Then by 2030, the £9.0 billion invested in advanced npps starts earning on the Wholesale Market.
But they will carry on for another 40 years of economical operation to reach £45.21 billion
Working out at £5.02 for every £1.00 of capital invested (12X more).
ADVANCED NUCLEAR POWER PLANTS!