Reply #7: The enviromental red tape increased the build time from about 3 years to about 12.

[Statistical]

Nuclear reactors are front loaded.

Unlike say a coal reactor which is "cheap" to build but uses expensive fuel a nuclear reactor is expensive to build and uses cheap fuel (fuel and fuel disposal accounts for less 15% of lifetime costs).

So say I want to build a reactor, so I get a loan right? Now from day 0 until the reactor starts producing power I have no cashflow so the interest capitalized (rolls back into the loan).

Hypothetical I can get a loan @ 8%.
The "overnight cost" (if I could build a reactor in 1 day, w/ no interest) is $3 million per MW.
The reactor is 1000MW so build cost is ~ $3B

If it takes me 3 years to go online from day 0 then my upfront cost is now $3.8B

So my reactor will need to produce $3.8B worth of power in its lifetime. Actually it will need to produce more to cover maintenance costs, interest costs, fuel costs, and decommissioning costs however the construction & TIME created $3.8B in upfront costs. Now that $3.8B will be paid down slowly (40 yr bond) once plant is generating cashflow. $3.8B ammortized over 40yrs @ 8% is about $10.2B

Now at 12 years....
$3B*1.08^12 = $7.55B upfront
$7.55 amortized over 40 yrs @ 8.0% = $26B.

So the same exact reactor but 3yrs vs 12 yrs from breaking ground until going online increases the build cost a staggering $15B. A reactor can produce in excess of $33B worth of power in a lifetime (80 years, 95% uptime, 1000MW * 24 * 365). $15B more in capitalized and interest costs can ruin the economic math.

We are building new reactors again due to changes in nuclear regulations. These certify the plant up front (clock isn't ticking), and then certify the site/land (small loan used not full $3B loan). Then assuming the plant is build EXACTLY to specs the time line should be substantially reduced. Reactors are standardized not custom built. For example every single AP1000 built around the world will be identical. Every bolt, every valve, every switch exactly the same.

Reducing the timeline from 12 years to 3yrs on the same reactor saves $15B and that is the difference between bankruptcy and comfortable profit margin.

BTW: The reactors are required to turn over all nuclear waste to the DOE and pay the US govt 1/2 cent per KWH (that works out to $3.3B per reactor per lifetime on average). So all nuclear waste in this country is owned by the US govt. The US govt has collected $48B in fees for disposal and hasn't disposed of the waste. It would be kinda like paying the garbage man but he doesn't pick up the trash.