The term nuclear fuel costs often refers to nuclear fuel cycle costs which in many cases includes the costs for the front end and back end of the fuel cycle. The front-end or fuel input costs of the nuclear fuel cycle are deter­mined by the prices of uranium mining and milling, conversion to UF6, enrichment, if applicable, fuel assembly fabrication and interest on fuel in inventory. Back-end costs include those for reprocessing, if applicable, and disposal of high-level radioactive waste or spent fuel and for plant decom­missioning (after final closure of the plant) and site rehabilitation.

Historically, nuclear fuel costs have varied between 10% and 20% of total generating cost (see Fig. 15.8) depending on prevailing uranium resource and enrichment costs, interest rates and whether or not back-end costs are included in fuel costs or treated as part of the variable O&M costs. Although generating costs are location — and design-specific, Fig. 15.8 indicates the relative shares of the cost components of nuclear electricity generation.

Source: NEA

15.6 Nuclear power life-cycle generating costs (NEA, 2003). Fuel costs for nuclear comprise the costs of the full nuclear fuel cycle including spent fuel reprocessing or disposal.

Uranium metal and the price of enrichment services are the cost compo­nents most susceptible to fluctuation and supply and demand imbalances.