Nuclear reactors in de-regulated markets: Integration between providers and customers?

Conference · Sat Jul 01 04:00:00 EDT 2006

OSTI ID:21016397

Girard, Philippe ^[1]

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1. Commissariat a l'Energie Atomique, 31-33 rue de la Federation 75015 Paris (France)

The deregulation of electricity markets has in most cases coincided with the end of state monopolies, where financial risks were borne by customers/citizens. Today, despite an economic advantage, nuclear power development faces two main problems: public acceptance and reticence of investors (banks, utilities shareholders). The development of electricity markets provides different financial instruments in order to hedge financial risks, but it is currently difficult to fix forward contracts for more than three to four years, and this period is insufficient for the financing of a nuclear reactor. A solution could be the evolution of nuclear providers into nuclear operators selling electricity (MWh) rather than selling nuclear capacity (MW), nuclear fuel and services. In this case, their customers would be utilities and big customers aiming to hedge a part of their supplies with long-term contracts or stakes in nuclear reactors without some nuclear constraints. (author)

• Research Organization: American Nuclear Society, 555 North Kensington Avenue, La Grange Park, IL 60526 (United States)
• OSTI ID: 21016397
• Country of Publication: United States
• Language: English

Related Subjects

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
CAPACITY
COMMERCIAL BUILDINGS
CONTRACTS
ELECTRICITY
FINANCING
HAZARDS
MARKET
MATHEMATICAL SOLUTIONS
NUCLEAR FUELS
NUCLEAR OPERATORS
NUCLEAR POWER
REACTORS