The aims of this report are twofold. Firstly, to highlight that new nuclear build is fully justified on the strength of the current economic criteria, and secondly, to identify the key risks associated with a nuclear power project and how these may be managed to support a business case for nuclear investment. It is written to promote a better understanding of these complex topics by the educated layperson, which may encourage subsequent wider discussion.
From the national viewpoint, many countries recognize the substantial role which nuclear power has played in satisfying various policy objectives, including energy security of supply, reducing import dependence and reducing greenhouse gas or polluting emissions. Nevertheless, as such considerations are far from being fully accounted for in liberalized power markets, nuclear plants must demonstrate their viability on
normal commercial criteria as well as their life cycle advantages.
The research and development work that was undertaken in the early stages of nuclear power development was a challenging project for government research organizations as well as the industrial sector. Nuclear projects have unique characteristics. They are capital intensive, with very long project schedules, but - once operational - they have remarkably low fuel and other operating costs. Nuclear plants also exist in a rigorous regulatory environment and are subject to significant public scrutiny and concern. These characteristics affect the structuring of nuclear new-build projects.
Experience has shown that nuclear projects are structured for success when risks are allocated among key stakeholders in a way that is equitable and encourages each participant to fulfill its responsibilities. Government policy that recognizes the value of nuclear energy must be accompanied by government action to create the conditions for private investment in new nuclear power plants.
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Managed & Built by I2M Consulting, LLC | © 2010-
Managed & Built by I2M Consulting, LLC | © 2010-