The Economics of Nuclear Power

Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, & Industry

Date posted: 02/18/15

Nuclear power is cost competitive with other forms of electricity generation, except where there is direct access to low-cost fossil fuels. Fuel costs for nuclear plants are a minor proportion of total generating costs, though capital costs are greater than those for coal-fired plants and much greater than those for gas-fired plants. Providing incentives for long-term, high-capital investment in deregulated markets driven by short-term price signals presents a challenge in securing a diversified and reliable electricity supply system. In assessing the economics of nuclear power, decommissioning and waste disposal costs are fully taken into account. Assessing the relative costs of new generating plants utilizing different technologies is a complex matter and the results depend crucially on location. Coal is, and will probably remain, economically attractive in countries such as China, the USA and Australia with abundant and accessible domestic coal resources as long as carbon emissions are cost-free. Gas is also competitive for base-load power in many places, particularly using combined-cycle plants, though rising gas prices have removed much of the advantage. Nuclear power plants are expensive to build but relatively cheap to run. In many places, nuclear energy is competitive with fossil fuels as a means of electricity generation. Waste disposal and decommissioning costs are included in the operating costs. If the social, health and environmental costs of fossil fuels are also taken into account, the economics of nuclear power are outstanding.