So let's say Australia decided to declare it will spend government money to establish a nuclear power plant. We'll assume they use Jervis Bay,
the site historically intended for the purpose, because like Guam or Washington DC, Jervis Bay isn't part of a state and is instead a non-state terrritory. That means the Commonwealth can make laws for it and it's where they have the best chance of doing something constitutionally valid. We'll assume objections to the heated water destroying a reasonably pristine local marine ecosystem are ignored, and we'll assume the NSW government doesn't sue to try to protect the local tourism industry over the border. So we're just talking construction costs.
We'll use Hinkley Point as a guide. It's a 3.2 gigawatt plant, so we'll assume that's what they want to build (the Jervis Bay proposal was 500 MW, but anyway). That's
currently reported to cost about 20 billion pounds before you add the subsidies it'll get through a guaranteed sale price. The Pound is in the toilet now but historically it runs at about 2 AUD to 1 Pound (I think it's about $1.70 currently) and costs are probably higher in a country with no prior expertise anyway.
So for convenience we'll call it $40 billion Australian dollars to get 3.2 GW of shiny new fission generation capacity. That'll generate power nearly all the time, give or take faults, inadequate demand, and grid issues. The
record capacity factor for nuclear power is about 92%, so we'll assume a 90% capacity factor. If you get power from a 3.2 GW plant 90% of the time that's about 22,500 GWh per year of delicious emissions free power, every year, once it starts generating.
How long will
that take? As I said, nuclear plants can take ten years to get running. Hinkley Point was approved in 2010, a license granted in 2012, and is expected to be operational in 2025. That's 15 years total, but let's be generous and assume it takes ten years from today even though we'd be building a regulatory regime and expertise from scratch.So here's how that looks in annual GWh generation terms:
View attachment 500729
How much solar power does $40 billion get you? The cost per watt of getting a solar panel system installed on your roof
is about $1.50 per watt for a 3 kW system, cheaper for larger ones, more expensive for smaller ones. Manufacturing costs are now like 50 cents per watt so a lot of the costs are actual installation. However we're probably looking at more than just household rooftops so let's look at bigger commercial scale systems
where the average cost is about $1.20 per watt. However that excludes some extra site costs but includes the renewable energy certificate subsidy whose value depends on the market price of the certificates. But let's go with that $1.20 per watt figure.
For $40 billion, then, it's plausible to install 33 GW worth of solar panels. Australia installed 1.3 GW of solar power in 2017,
but with larger projects should install about 3.5GW in 2018. So let's assume a 2.5 GW per year installation rate from a sustained rollout of different scale systems.
How much energy does a gigawatt of solar get you? It all depends on where they're installed and whatnot, as astute people are fond of pointing out, the sun doesn't always shine. The capacity factor of solar is much lower than nuclear power. Average daily production from a 1kW system might be about 4kWh which is well below the 24 kWh you could get if it generated all day. It's about a 16.6% capacity factor I think - roughly 1/6th.
View attachment 500728
At that rate, 2.5GW will give us 10 GWh per day or about 2650 GWh per year. A lot less than a nuclear power plant!
But that much keeps being added every year. Every year for 13 years in this plan we're adding 2.5 GW of solar panels, until we've added 33 GW at that cost of $40 billion by early in year 14. That means we've basically got all the solar up and running by the time the nuclear plant starts running (fingers crossed the nuclear plant is on time tho). Nuclear power keeps going at a constant rate, while
the degradation rate of solar panels is about 0.5% of output per year for modern panels.
Putting the installation rate and degradation rates together, here's annual generation:
View attachment 500744
So spending $40 billion on solar gets a massive head start, but after many decades spending $40 billion nuclear might catch up if it doesn't get decommissioned. In that time though, we've obtained a massively higher volume of electricity from the panels, something which the nuclear power is never likely to catch up with. Here's
cumulative lifetime output:
View attachment 500743
I should note I'm being very very generous in assuming the cost of the solar panels doesn't drop further in the next decade, but then on the other hand I also haven't added the cost of batteries which are in the early stages of totally changing how grids will work. Currently, at a household install, batteries will roughly double the cost per kW, but that's coming down fairly quickly, and as more householders go self-sufficient the actual need for grid power diminishes.
At utility scales, matching installations with storage 1:1 is much less of a concern given the grid has lots of participants. The balance of load is therefore partly or wholy met by other flexible sources in a price based centralised dispatch process, so you're looking at a smaller ratio of storage to installed generation (since the coal plant was closed, with up to 50% wind generation, South Australia's market fills the gaps with imports, gas and is starting down the battery storage path).
Australia's annual electricity consumption in the national grid covering 5 of 6 states is a bit under 200 TWh per year, so our solar panels in 13 years would be meeting 1/5th of that demand at a near-zero marginal cost. That will of course lead to significant shifts in the rest of the market. You'd probably see gas and hydro expanding or maintaining their market shares, at the expense of coal which is too fixed and inflexible to exploit the sporadic peak price periods created by intermittent renewable generation. The market opportunities for utility scale batteries would start to become very attractive.
But if the question is what use of a big clump of government funding gives you the most electricity to play with out of nuclear power and solar panels, then the smart spend is on the panels.