Nuclear Energy - High Costs
VOLUME 15, NUMBER 2
January 2008
AN IEER PUBLICATION
Published on the Web as Énergie et Sécurité and
No. 40
Nuclear Power Costs: High and Higher
A
BY
ARJUN
MAKHIJANI,
Ph.D.
1
fter the spectacular crash of the 1950s propaganda of nuclear power that would be “too cheap to meter,” evidenced in dozens of cancelled nuclear power plants because they were too costly to build or complete, there is a new push for nuclear power in the United States. Some advocates of a nuclear power “renaissance” are basing their appeals on the notion that nuclear power will be an inexpensive way to get new baseload capacity and to combat global warming. Others believe that it may become economical if there is a high enough price on carbon dioxide emissions.
Cost estimates of nuclear power
The principal cost associated with commercial nuclear power is the capital cost of the plant. Operating costs consist of fuel, which is generally low enriched uranium; other operating and maintenance costs constitute a relatively small fraction of the total cost of nuclear power. The costs of spent fuel management and disposal as well as decommissioning costs would be in addition to these two items. Capital costs of nuclear power consist mainly of two components: • The “overnight cost” of the power plant – this is the cost that would be incurred if the plant could be built at once. • Additional costs incurred during construction, notably interest costs. The overnight cost of nuclear power is a matter of some debate. A 2003 MIT report, which advocates building nuclear power plants, estimated it at $2,000 per
kilowatt (kW), while a 2004 University of Chicago study estimated it at $1,500 per kW.1 Current U.S. estimates and actual experience in Western Europe with the European Pressurized Water Reactor are much higher. For instance, the CEO of Duke Energy, which wants to build nuclear power plants, gave his estimate of the capital cost of $2,500 to $2,600 per kW.2 Using
January 2008
AN IEER PUBLICATION
Published on the Web as Énergie et Sécurité and
No. 40
Nuclear Power Costs: High and Higher
A
BY
ARJUN
MAKHIJANI,
Ph.D.
1
fter the spectacular crash of the 1950s propaganda of nuclear power that would be “too cheap to meter,” evidenced in dozens of cancelled nuclear power plants because they were too costly to build or complete, there is a new push for nuclear power in the United States. Some advocates of a nuclear power “renaissance” are basing their appeals on the notion that nuclear power will be an inexpensive way to get new baseload capacity and to combat global warming. Others believe that it may become economical if there is a high enough price on carbon dioxide emissions.
Cost estimates of nuclear power
The principal cost associated with commercial nuclear power is the capital cost of the plant. Operating costs consist of fuel, which is generally low enriched uranium; other operating and maintenance costs constitute a relatively small fraction of the total cost of nuclear power. The costs of spent fuel management and disposal as well as decommissioning costs would be in addition to these two items. Capital costs of nuclear power consist mainly of two components: • The “overnight cost” of the power plant – this is the cost that would be incurred if the plant could be built at once. • Additional costs incurred during construction, notably interest costs. The overnight cost of nuclear power is a matter of some debate. A 2003 MIT report, which advocates building nuclear power plants, estimated it at $2,000 per
kilowatt (kW), while a 2004 University of Chicago study estimated it at $1,500 per kW.1 Current U.S. estimates and actual experience in Western Europe with the European Pressurized Water Reactor are much higher. For instance, the CEO of Duke Energy, which wants to build nuclear power plants, gave his estimate of the capital cost of $2,500 to $2,600 per kW.2 Using
References: 1 he nuclear industry has been quick to proclaim that a “nuclear renaissance” is occurring, or is at least in the offing, though not a single new reactor has been ordered at the time of this writing (midNovember 2007)