Re:The five-year engineering feat Germany pulled off in months
by crote on Sunday December 11, 2022 @01:32PM
(#33945900)
"Market forces" by definition do not guarantee usage, as they would use the cheapest form of electricity.
As it turns out, the industry is willing to build new nuclear if and only if 1) the government guarantees 100% usage of the offered capacity 2) the government is willing to pay for the difference between the market price of electricity and a (higher) fixed fee.
The fixed pricing of nuclear is often way higher than the market price - even with 100% capacity usage. It is simply not able to compete with dirt-cheap solar and wind energy. The free market is aware of this, so they are unwilling to take the risk without guaranteed government subsidies.
As it turns out, the industry is willing to build new nuclear if and only if 1) the government guarantees 100% usage of the offered capacity 2) the government is willing to pay for the difference between the market price of electricity and a (higher) fixed fee.
The fixed pricing of nuclear is often way higher than the market price - even with 100% capacity usage. It is simply not able to compete with dirt-cheap solar and wind energy. The free market is aware of this, so they are unwilling to take the risk without guaranteed government subsidies.