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Rod Adams says: December 15, 2023 at 10:13 AM
I believe that many (perhaps most) observers are confused about the economies of scale and believe that the term only applies to ever larger machines.
Scale is also related to the enterprise that develops the power plant and the supply chain that produces the parts for the machines. If the power plants are so large that all of their components are produced in limited quantities, their supply chain never has the chance to develop economic scale.
NuScale’s system includes many simplifications that might enable it to achieve competitive pricing, especially when the kWh that they sell get appropriately differentiated and valued as superior to similar units of electricity that do not include valuable characteristics like cleanliness, reliability, stability, inertia and power factor.
As I pointed out in my post, the $89/MWh price tag for NuScale output is competitive in a number of different markets. Their mistake was trying to sell to reluctant customers in a place where power is generally cheap and where the customers have no real reason to take risks and bet on FOAK technology.
My sources tell me that the fatal decision to focus on UAMPS as the initial customer was a result of strong pressure by INL to host US’s the pioneering SMR.
That might have worked if NuScale had planned to offer a single 50 MWe module. That power output that could be handled by INL, perhaps with the help of Idaho Power. But NuScale decided they needed to achieve scale more quickly and chose initially to build a 12 unit, 600 MWe power plant in the middle of a vast, nearly unpopulated desert. (The initial plan was rescaled to 6 units of 77 MWe each, but that is still a 462 MWe facility on an 860 square mile site with a total local consumption of roughly 80 MWe.
Consuming the power from their proposed plant required a much larger customer base, but the only utility available was a consortium of 40+ small town cooperatives.
Abandoning the UAMPS project before wasting any more money was a good decision. NuScale has a number of additional potential customers in its pipeline, though it still needs to overcome the FOAK challenge.
