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[-] frezik@midwest.social 3 points 1 week ago

There’s more money investors wanting invest in wind, solar, or hydroelectric projects, than there are projects to invest it. The limiting factor isn’t money.

Let's say you have money to invest in the energy sector. You take a look at nuclear and find that while the regulatory environment is very high, it isn't insurmountable. The Department of Energy has shown a willingness to sign off on new nuclear projects as long as you do your homework. It's a lot, but it can be done.

Next, you look at the history of building projects. The baseline for time to build is 5 years, but everyone knows this is a lie. That thing isn't getting done for at least 7 years, often more like 10. Its budget will expand by about the same proportion. You won't see a dime of profit until it's done. If it can't raise the money from either yourself or other investors to cover the shortfall, then it's useless and your entire investment will be wiped out.

The Westinghouse AP1000 design was hoped to get around some of the boutique engineering challenges of building nuclear in the past. It did not.

If you instead invest into solar or wind, you'll find some regulatory hurdles. Mainly from the local NIMBYs. The hookup agreements with the utility companies take some doing, but it's not outrageous. Looking at the construction side of things, these projects are pretty much turnkey. They don't require any specialized engineering (not the way nuclear does). They tend to get done on time and within budget.

This, too has been studied. The average cost overrun of a solar megaproject is 1%. For wind, 13%, and it's 20% for water. Want to know what it is for nuclear? It's right near the top of the list at 120%. The only megaprojects on the list that do worse are Olympic Games and nuclear storage.

With numbers like that, it's no wonder investors are dumping their money into solar and wind.

this post was submitted on 17 Nov 2024
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