This article power system economics pdf attention from an expert in energy economics. 2 billion for six new nuclear plants. 2018, due to “both structural and economic reasons,” and the project’s total cost has climbed to EUR 11 billion in 2012. Similarly, the cost of the EPR being built at Olkiluoto, Finland, has escalated dramatically, and the project is well behind schedule.
The initial low cost forecasts for these megaprojects exhibited “optimism bias”. New nuclear power plants typically have high capital costs for building the first several plants, after which costs tend to fall for each additional plant built as the supply chains develop and the regulatory processes improve. Fuel, operational, and maintenance costs are relatively small components of the total cost. The long service life and high productivity of nuclear power plants allow sufficient funds for ultimate plant decommissioning and waste storage and management to be accumulated, with little impact on the price per unit of electricity generated.
Additionally, measures to mitigate climate change such as a carbon tax or carbon emissions trading, would favor the economics of nuclear power over fossil fuel power. Nuclear power construction costs have varied significantly across the world and in time. Massive and rapid increases in cost occurred in the 1970s, especially in the US, but these trends were much milder in other countries.