I’m confused. Power generated, regardless of the source, goes out on the general grid everyone accesses. What is the significance of Walmart saying they’ll buy nuclear power off the grid? Since the grid is powered by lots of different technologies, natural gas, coal, oil, (cough)solar and possibly unicorn farts, how will they know they’re getting just nuclear?
The model for power generation forever has been to socialize the cost of constructing a new plant by raising everyone’s rates. Does this article indicate that the cost of new generation is now being underwritten by the users of that new capacity? If that’s the case, will the power grid also benefit when that capacity is otherwise sitting idle? If so, will that affect the billing rates?
Enquiring minds need to know. (And you’re really old if you understood that cultural reference.)
They will build their own small reactors beside their locations.......................
I’m sure the promises come with a reduced rate.
From my limited knowledge review of it, it seems that Walmart believes that electricity prices are going to skyrocket in the future. They have entered into an agreement with the power company that if they give them a big chunk of money right now to upgrade the generation capabilities, they will get a locked in, low rate in the future.
Guess who will be be paying the difference in 10-20 years from now?
Walmart - pays a big chunk now/receives a much bigger savings in the future - WIN
Power Company - gets their generation capacity increase for free because Walmart is paying for it. Will be able to charge significanlty more $ for significantly more output in 10-20 years - WIN
Us - will have to pay huge rates on power in the coming years to subsidize AI, data centers and warehouses.
It is a version of the Texas model.
Electric power companies are made up of three distinct groups. Generating companies… the companies that make the power. Transmission companies… the companies that transport the power long distances. And Distribution companies .. the companies that bring the power to your home or business and where you pay your bill.
Each day, the Distribution companies tell the world how much power they will need the next day. The Generation companies bid on delivering that power. Walmart has established a fixed price for the amount of power they foresee using with this generation company. They know what their costs will for power. The generation company knows they have a fixed price coming for a percentage of their capacity.
Yes, the power goes into the grid and distribution system. It does not matter in the least which electrons flow into Walmarts warehouse.