So how much will it cost to build a nuke?

Journal Article · Fri Jan 15 04:00:00 EST 2010 · Electricity Journal

DOI:https://doi.org/10.1016/J.TEJ.2010.01.003· OSTI ID:21285682

Trying to get a better understanding of the different estimates of the cost of nuclear power, Prof. Francois Leveque of Mines ParisTech and Marcelo Saguan of Microeconomix examined seven studies published since 2000. They examined levelized cost, which captures the cost of electricity generation from nuclear reactors over the entire life cycle, including initial investment costs, operations and maintenance costs, cost of fuel, cost of capital, and decommissioning. The results, in 2007 euro/MWh, vary from 18 to 80. Making matters worse, more recent studies show an upward trend: the average value for studies published in 2003--05 is about 43 euro/MWh, while those published in 2007--09 average 63 euro2007/MWh. One reason for the different results is different assumptions about the main cost drivers and how they may vary over time. With the advent of third-generation nuclear reactors, numbers in the range of $1,000/kW (approx. 750 euro/kW) were being tossed around, suggesting a $1 billion investment for a 1,000 MW plant. A 2003 MIT study assumed an overnight cost of 1,750 euro/kW, with later studies raising the numbers to 3,000 euro/kW (approx. US$ 4,500). In 2008, Progress Energy Florida put the price tag for 2 new reactors it is planning to build on the Gulf Coast of Florida at $14 billion with another $3 billion for transmission and related expenses. Likewise, Florida Power & Light figures it would cost $20 billion for 2 new reactors at its Turkey Point site in Florida. These higher cost estimates and significant uncertainties about the true costs pose serious challenges to the competitiveness of nuclear power.

• OSTI ID: 21285682
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 1 Vol. 23; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
29 ENERGY PLANNING, POLICY, AND ECONOMY
COST ESTIMATION
FORECASTING
NUCLEAR POWER PLANTS
POWER REACTORS