CONFIDENTIAL
CONFIDEN
Levelised Cost
(US¢/kWh)
Case 1
PWR 2x900 MW
Built in HK with HK conditions
Case 2
PWR 2x900 MW
Joint Venture with equity (60/40)
35% tax rate
Case 3
PWR 2x900 MW
Joint Venture with equity (60/40)
20% tax rate
Case 4
PWR 2x900 MW
PRC owned
no tax
Case '5
Coal 3x660 MW
Built in HK with HK conditions
Case 6
Coal 3x660 MW
Joint Venture with equity (60/40) 35% tax rate
12.10
13.10
12.01
11.47
21.15
22.12
Notes:
¦
1.
2.
3.
4.
:
Case 4 (PRC owned) having the lowest levelised cost of US$11.47/kWh,' among six cases studied.
•
The higher cost in Case 2 (JV at 35% tax rate) as compared with Case 1 (PWR built in HK) is mainly due to higher tax rate used in Case 2.
Case 3 shows that in order to be competitive to Case 1's US 12.10 (the HK conditions), JV's tax rate should be reduced to about 20%.
It has illustrated that nuclear cases, in terms of levelised cost, are significantly cheaper than coal (Cases 5 & 6) by about 45%.
dk:sl.
5th July, 1980
CONFIDENTIAL
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