Overnight cost is the cost of a construction project if no interest was incurred during construction, as if the project was completed "overnight." An alternate definition is: the present value cost that would have to be paid as a lump sum up front to completely pay for a construction project.
The overnight cost is frequently used when describing power plants. The unit of measure typically used when citing the overnight cost of a power plant is $/kW. For example, the overnight cost of a nuclear plant might be $5,000/kW, so a 1000 MW plant would have an overnight cost $5 billion. (Interest on the $5 billion spent during construction would be extra.)
- Steven Stoft (2002). Power economics: designing markets for electricity. Chichester: Wiley-Academy. ISBN 0-471-15040-1.
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