H.-H. ROGNER, International Atomic Energy Agency

(IAEA), Austria

Abstract: The economics of nuclear power are reviewed from the perspectives of investments, finance and overall competitiveness versus alternatives on a life-cycle basis. Nuclear power plants, once built, are cheap to operate but their construction is expensive, and with current commercially available unit sizes they represent a sizable financial exposure and economic risks to investors. Long lead times for planning, licensing and construction as well as payback periods counted in decades further compound investor risks. Policies that reward environmental performance generally improve the competitiveness of nuclear power. The chapter touches upon direct economic costs as well as externalities and government policy in support of the technology.

Key words: nuclear power economics, finance, generating cost, externalities.

15.1 Introduction