A small Utah utility, UAMPS, has contracted to buy power from the Small Modular Reactor Plant now under construction by NuScale in Idaho. The venture is highly subsidized. How practical is this venture? The UAMPS agreement requires that the "levelized cost of energy" is not to exceed 6.5 cents /kWh.
The levelized cost of energy (LCOE) is a measure of a power source that allows comparison of different methods of electricity generation on a consistent basis. The LCOE can also be regarded as the average minimum price at which electricity must be sold in order to break-even over the lifetime of the project. The Energy Cost generally calculated from the Fuel of cost plus maintenance cost, Labors plus Taxes etc. This includes the initial capital investment, maintenance costs, the cost of fuel for the system (if any), any operational costs and the discount rate.
https://www.lazard.com/perspective/levelized-cost-of-energy-and-levelized-cost-of-storage-2018/
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