Expanding financing opportunities to include nuclear and hybrid energy systems

As the world increasingly seeks to transition away from fossil fuels and to renewable energy sources, utilities and their partners often rely on financing to build new energy plants. Most energy projects require high startup costs, and renewables are no exception, so financing is a valuable tool for acquiring the needed funds to start construction on a wind farm or solar plant, for instance.

Cox et al. examined the role of financing for nuclear and hybrid energy systems, which are often excluded from traditional financing opportunities. They described principles common to many hybrid systems that could enable more opportunities for low-cost financing.

“Clean energy financing is being re-examined now as countries seek to decarbonize many sectors of their economies,” said author Jordan Cox. “Nuclear and hybrid energy are sometimes excluded from the discussion, and this paper demonstrates how clean energy finance could evolve to capture their benefits while reducing financing costs.”

The authors discussed the unique considerations around hybrid systems, such as their flexibility. Hybrid installations can incorporate multiple energy sources, offer additional services beyond energy generation, and have multiple output streams or end products. These features can make them more versatile and resistant to market fluctuations, which should affect financing costs.

Measuring these advantages for hybrid systems is less straightforward than for traditional projects, however. The authors suggest several alternative metrics to capture their unique impact, such as reduced infrastructure costs, energy efficiency savings, and environmental benefits. By standardizing these metrics and increasing awareness of the benefits of hybrid and nuclear energy systems, they hope to increase their adoption in the near future.

Source: “Principles to adapt financing mechanisms for fully integrated hybrid energy systems,” by Jordan Cox, Caitlin Murphy, and Andrew Foss, Journal of Renewable and Sustainable Energy (2022). The article can be accessed at https://doi.org/10.1063/5.0118251 .

This paper is part of the Hybrid Renewable Energy Systems Collection, learn more here .