Small Modular Reactor PPA Price Floor

Build a quick price floor for a small modular reactor power purchase agreement. Enter installed cost per kW, capacity factor, fixed O&M, and weighted average cost of capital. Optionally set the project life to see annualized capital recovery, total per kW-year cost, and the resulting $/MWh required to cover fixed expenses.

Total overnight capital cost per kilowatt of capacity, including EPC and owner costs.
Expected average utilization after outages and derates.
Fixed operating and maintenance cost per kilowatt-year, including staffing and fuel handling.
Blended cost of debt and equity used to annualize capital charges.
Defaults to 40 years. Adjust if you model a shorter or longer operating license.

Outputs illustrate fixed-cost recovery only. Incorporate market price forecasts, escalation clauses, and tax structures before finalizing commercial terms.

Examples

  • $9,200/kW build, 90% capacity factor, $220/kW-year O&M, 8% WACC, 40-year life ⇒ Annualized capital is $771.51 per kW-year and total fixed cost is $991.51. Dividing by 7.88 MWh per kW-year produces a $125.76/MWh price floor.
  • $6,800/kW build, 85% capacity factor, $180/kW-year O&M, 6% WACC, 40-year life ⇒ Capital recovery is $451.94 per kW-year, total fixed cost $631.94, supporting an $84.87/MWh minimum price.

FAQ

How do federal credits affect the price floor?

Subtract annualized production or investment tax credits from the total fixed cost before dividing by MWh to reflect incentives that lower the required PPA price.

Can I model construction financing during build?

Include interest during construction in the installed cost per kW so the capital recovery factor annualizes the full spend.

What if my project life differs from the operating license?

Adjust the optional project life input to match the depreciation period or license term you are underwriting; the calculator defaults to 40 years when left blank.

Does this account for variable O&M or fuel?

No. Layer variable costs on top of the price floor when negotiating PPAs so energy payments cover both fixed and variable expenses.

Additional Information

  • Capital recovery factor converts WACC and project life into an annualized payment per dollar of capex.
  • Capacity factor scales annual MWh per installed kW; lower utilization raises the required PPA price.
  • Fixed O&M inputs should include nuclear regulatory fees, staffing, and long-term service agreements.
  • The calculator excludes decommissioning funds, fuel cycling, and tax credits; layer those into your broader financial model.

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