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LCOE is good for marginal cost (eg: one more solar panel), but fails dramatically at evaluating systemic costs.

A nuclear reactor moves the entire market down, including the costs to the consumer when he buys solar energy.

Here is a UN document explaining it: https://unece.org/sites/default/files/2025-09/GECES-21_2025_...



The SCBOE score is a good idea. However, in the case of Germany, it is often overlooked that the power grid dating from the 1970s, which was built as a one-way system from large power plants (nuclear power plants) to consumers, would have needed to be rebuilt regardless. A large share of the grid costs would therefore have been passed on to consumers even without the transition to renewable energy. Additionally, Germany is located in the center of Europe and is thus a major transit country for electricity. Here too, corresponding capacities would have had to be expanded. The expansion of a European power grid also means that the disadvantages of renewable energy variability can be offset. As the SCBOE system also shows, the individual power plant still accounts for the largest share of costs. Many of the additional factors can actually go down in prices as renewables scale up (nuclear has still to prove that this could work there too). In that regard, LCOE remains relevant.


Even in the peak of nuclear electricity production in the year 2001, coal was dominant source electricity in German grid. (Data for 2001, Nuclear 171 TWh, Coal 293 TWh).

https://ourworldindata.org/grapher/electricity-prod-source-s...

Power grid is not and newer was a one-way system, all the AC power lines, transformers don't care for the direction of the current. It's only the amount of current passing through each power lines, transformers that's important.

The side effect of many electric customers installing PV panels and reducing their demand from grid is that the fuel costs of on-demand power plants decrease, but the fixed costs of on-demand power plants (installation, maintenance) stay the same. These fixed costs have to be recouped in the smaller amount of electricity sold by on-demand power plants, therefor per MWh prices from on-demand power plants will increase for electric grid customer.

For most electric customers it's not possible to disconnect from electric grid and rely just on PV panels and batteries.

Germany is not major transit country for electricity. According to data from 2019 electricity interconnection level for Germany was only 10% .

https://en.wikipedia.org/wiki/Continental_Europe_Synchronous...

Germany is projected to have import capacity equal to less than 15% of their domestic electricity generation by 2030.

https://ember-energy.org/latest-insights/money-on-the-line-s...

Building of large capacity and long power lines is expensive, therefor many big industrial electric consumers were build near power plants or power plants were build near major industrial customers.




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