The NEI reported in 2019 that the average total generating cost for nuclear energy in 2018 was $31.88 per megawatt-hour (MWh). The 2018 total generating costs were 7.1 percent lower than in 2017 and nearly 25 percent below the 2012 costs. Total generating costs include capital, fuel, and operating costs – all the costs necessary to produce electricity from a nuclear power plant. Cost information for the U.S. nuclear fleet is collected by the Electric Utility Cost Group (EUCG) with prior years converted to 2018 dollars for accurate historical comparisons.
Approximately 80 percent of the electricity generated from nuclear power in the U.S. comes from plants with multiple reactors. The economies of scale allow plant operators to spread costs over more generation, resulting in a lower total generating cost. In 2018, the average total generating cost at multi-unit plants was $29.07 per MWh compared to $42.00 per MWh for single-unit plants.2 The average total generating cost at multi-unit plants declined over 8 percent, while the cost for a single-unit plant declined by nearly 4 percent, compared to 2017. This separation is driven by operations and capital costs as there is not a meaningful difference in fuel costs. The average total generating costs for an operator with only one plant were $33.52 per MWh compared to $31.41 per MWh for operators with multiple plants. The primary drivers for the decline in costs were lower operational and capital expenditures.
In 2018, the average total generating cost for plants in the wholesale markets was $29.34 per MWh compared to $34.24 per MWh for plants in the regulated markets. The average total generating cost for plants in wholesale markets declined by over 7 percent, while the cost for plants in regulated markets declined by nearly 7 percent, compared to 2017. The average total generating costs for Boiling Water Reactor (BWR)-based plants are $33.48 per MWh and for Pressurized Water Reactor (PWR)-based plants are $31.06 per MWh. The differences are due to a higher share of BWR plants undergoing refueling outages compared to PWR plants.
The 7.1 percent reduction in total generating costs year-over-year is due to a 9.3 percent reduction in fuel, a 8.7 percent reduction in capital expenditures and a 5.9 percent reduction in operations costs. The 25 percent reduction in total generating costs since 2012 is due to a 46 percent reduction in capital expenditures, a 25 percent reduction in fuel and a 14 percent reduction in operations costs. Prior to the 2012 peak, nuclear total generating costs had increased steadily over the previous decade, for various reasons.
The 2018 total generating costs of $31.88 per MWh have been reduced to near 2006 levels ($31.63 per MWh). The operations costs of $19.69 per MWh have been reduced to 2004 levels ($19.66 per MWh).
Also see the following discussions on capital costs, operations. fuel, economic pressures, and economic impact of nuclear plant closures.
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