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Title: Investment issues in nuclear plant license renewal

Abstract

A method that determines the operating lives for existing nuclear power plants is discussed. These assumptions are the basis for projections of electricity supply through 2020 reported in the Energy Information Administration`s (EIA`s) Annual Energy Outlook 1999. To determine if plants will seek license renewal, one must first determine if they will be operating to the end of their current licenses. This determination is based on an economic test that assumes an investment of $150/kW will be required after 30 yr of operation for plants with older designs. This expenditure is intended to be equivalent to the cost that would be associated with any of several needs such as a one0time investment to replace aging equipment (steam generators), a series of investments to fix age-related degradation, increases in operating costs, or costs associated with decreased performance. This investment is compared with the cost of building and operating the lowest-cost new plant over the same 10-yr period. If a plant fails this test, it is assumed to be retired after 30 yr of service. All other plants are then considered candidates for license renewal. The method used to determine if it is economic to apply for license renewal and operate plantsmore » for an additional 20 yr is to assume that plants face an investment of $250 million after 40 yr of operation to refurbish aging components. This investment is compared with the lowest-cost new plant alternative evaluated over the same 20 yr that the nuclear plant would operate. If the nuclear plant is the lowest cost option, it is projected to continue to operate. EIA projects that it would be economic to extend the operating licenses for 3.7 GW of capacity (6 units).« less

Authors:
 [1]
  1. DOE, Washington, DC (United States)
Publication Date:
OSTI Identifier:
678183
Report Number(s):
CONF-990605-
Journal ID: TANSAO; ISSN 0003-018X; TRN: 99:009168
Resource Type:
Journal Article
Journal Name:
Transactions of the American Nuclear Society
Additional Journal Information:
Journal Volume: 80; Conference: 1999 annual meeting of the American Nuclear Society (ANS), Boston, MA (United States), 6-10 Jun 1999; Other Information: PBD: 1999
Country of Publication:
United States
Language:
English
Subject:
21 NUCLEAR POWER REACTORS AND ASSOCIATED PLANTS; NUCLEAR POWER PLANTS; REACTOR LICENSING; REACTOR OPERATION; SERVICE LIFE; ECONOMIC ANALYSIS

Citation Formats

Eynon, R.T. Investment issues in nuclear plant license renewal. United States: N. p., 1999. Web.
Eynon, R.T. Investment issues in nuclear plant license renewal. United States.
Eynon, R.T. Wed . "Investment issues in nuclear plant license renewal". United States.
@article{osti_678183,
title = {Investment issues in nuclear plant license renewal},
author = {Eynon, R.T.},
abstractNote = {A method that determines the operating lives for existing nuclear power plants is discussed. These assumptions are the basis for projections of electricity supply through 2020 reported in the Energy Information Administration`s (EIA`s) Annual Energy Outlook 1999. To determine if plants will seek license renewal, one must first determine if they will be operating to the end of their current licenses. This determination is based on an economic test that assumes an investment of $150/kW will be required after 30 yr of operation for plants with older designs. This expenditure is intended to be equivalent to the cost that would be associated with any of several needs such as a one0time investment to replace aging equipment (steam generators), a series of investments to fix age-related degradation, increases in operating costs, or costs associated with decreased performance. This investment is compared with the cost of building and operating the lowest-cost new plant over the same 10-yr period. If a plant fails this test, it is assumed to be retired after 30 yr of service. All other plants are then considered candidates for license renewal. The method used to determine if it is economic to apply for license renewal and operate plants for an additional 20 yr is to assume that plants face an investment of $250 million after 40 yr of operation to refurbish aging components. This investment is compared with the lowest-cost new plant alternative evaluated over the same 20 yr that the nuclear plant would operate. If the nuclear plant is the lowest cost option, it is projected to continue to operate. EIA projects that it would be economic to extend the operating licenses for 3.7 GW of capacity (6 units).},
doi = {},
journal = {Transactions of the American Nuclear Society},
number = ,
volume = 80,
place = {United States},
year = {1999},
month = {9}
}