Nuclear energy as an economical commitment

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Nuclear has greatly suffered from the uncertainty of political stances. As explained by Real Engineering in The Economics of Nuclear Energy, the business around it works only if there is a long commitment due to the many years it takes for it to be profitable.

Unlike renewables, which are quick to build, nuclear power plants take at least 6 years to be build and use outside investments. The more time they need the higher interest rates are. Hinkley Point C is a good example of this with them amounting to more than 60% of the total cost.

SMRs obviate the problem by being built faster. This also means that you can pay for the next reactor with the money you got by selling the energy you are producing with the current one.

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Francesco Scomazzon

Freelance data journalist skilled in video editing and motion graphics