Another significant bias in the LCOE concept is the assumption of a fixed electricity price. Nuclear plant may find it difficult to load-follow and its fuel makes a relatively small contribution to cost. Consequently, in seeking to maximise profit, the generator will maximise output, i. e. it will usually be in its interest to operate continuously and, therefore, at baseload. In this case the assumption of a fixed electricity price seems reasonable.

In contrast, let us imagine that, based on data like those shown in Fig. 5.1, a CCGT plant decides that it will aim to operate only when the electricity price is 50% above baseload price and that this results in the plant operating for four hours per day. This reduces the availability from 85% to 25% and increases the capital charges by a factor of 3.4 (85/25). Using the figures in Table 5.3 and assuming that other values remain constant, this increases the LCOE by about 33%. The difference between the 50% increase in the electricity price and the 33% increase in the LCOE represents increased profit.

By comparing LCOE values for nuclear and gas we are, in effect, viewing them as competitors. This calculation indicates that, on the contrary, they may in fact be complementary.