Financing the Nuclear Renaissance
AbstractThis paper considers the key economic risks associated with nuclear power. The authors observe that the bulk of the risks of a nuclear power station project fall during the roughly five year period of plant construction. This window of risk follows a lengthy siting process and comes before power station operations lasting up to sixty years. As a consequence of the nature of the economic risks, operational nuclear power plants are more attractive targets for initial investment than new build projects. The authors suggest that the first glimmers of a US nuclear renaissance were visible in 2000 when dramatically higher prices were achieved for second-hand nuclear power plants following a period of depressed prices in the 1990s. The paper closes with a consideration of the prospects for nuclear new build in both Europe and the United States and the key financial and economic factors that could drive such developments differently in each case.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0829.
Date of creation: Jun 2008
Date of revision:
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm
Finance; Nuclear Power; Electricity Generation; Economic Risk; Energy Policy;
Find related papers by JEL classification:
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-05 (All new papers)
- NEP-ENE-2008-09-05 (Energy Economics)
- NEP-PPM-2008-09-05 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gupta, Nainish K. & Thompson, Herbert G., 1999. "The Market Value of Nuclear Power," The Electricity Journal, Elsevier, vol. 12(8), pages 38-45, October.
- Roques, F.A. & Nuttall, W.J. & Newbery, D.M. & de Neufville, R., 2005.
"Nuclear Power: a Hedge against Uncertain Gas and Carbon Prices?,"
Cambridge Working Papers in Economics
0555, Faculty of Economics, University of Cambridge.
- Fabien A. Roques & William J. Nuttall & David M. Newbery & Richard de Neufville & Stephen Connors, 2006. "Nuclear Power: A Hedge against Uncertain Gas and Carbon Prices?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-24.
- Jewell, Jessica, 2011. "A nuclear-powered North Africa: Just a desert mirage or is there something on the horizon?," Energy Policy, Elsevier, vol. 39(8), pages 4445-4457, August.
- Adela Conchado & Pedro Linares, 2010.
"The Economics of New Nuclear Power Plants in Liberalized Electricity Markets,"
04-2010, Economics for Energy.
- Linares, Pedro & Conchado, Adela, 2013. "The economics of new nuclear power plants in liberalized electricity markets," Energy Economics, Elsevier, vol. 40(S1), pages S119-S125.
- Finon, D. & Roques, F., 2008.
"Financing arrangements and industrial organisation for new nuclear build in electricity markets,"
Cambridge Working Papers in Economics
0850, Faculty of Economics, University of Cambridge.
- D. Finon & F. Roques, 2008. "Financing Arrangements and Industrial Organisation for New Nuclear Build in Electricity Markets," Competition and Regulation in Network Industries, Intersentia, vol. 9(3), pages 247-282, September.
- Kessides, Ioannis N., 2012. "The future of the Nuclear industry reconsidered : risks, uncertainties, and continued potential," Policy Research Working Paper Series 6112, The World Bank.
- Jewell, Jessica, 2011. "Ready for nuclear energy?: An assessment of capacities and motivations for launching new national nuclear power programs," Energy Policy, Elsevier, vol. 39(3), pages 1041-1055, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).
If references are entirely missing, you can add them using this form.