The Economics of New Nuclear Power Plants in Liberalized Electricity Markets
AbstractThe nuclear debate is strong in many countries, with the discussion of its economics being a significant part of it. However, most of the estimates are based on a levelized-cost methodology, which presents several shortcomings, particularly when applied to liberalized electricity markets. Our paper provides results based on a different methodology, by which we determine the breakeven investment cost for nuclear to be competitive with other electricity generation technologies. Our results show that the cost competitiveness of nuclear is not clear, and that several uncertainties may prevent the revival expected by some.
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Bibliographic InfoPaper provided by Economics for Energy in its series Working Papers with number 04-2010.
Length: 21 pages
Date of creation: Nov 2010
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Web page: http://www.eforenergy.org
Nuclear power; economics; liberalized electricity markets;
Find related papers by JEL classification:
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
- Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
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- Geoffrey Rothwell, 2006. "A Real Options Approach to Evaluating New Nuclear Power Plants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 87-54.
- Nuttall, W.J. & Taylor, S, 2008. "Financing the Nuclear Renaissance," Cambridge Working Papers in Economics 0829, Faculty of Economics, University of Cambridge.
- Kennedy, David, 2007. "New nuclear power generation in the UK: Cost benefit analysis," Energy Policy, Elsevier, vol. 35(7), pages 3701-3716, July.
- Linares, P. & Santos, F.J. & Pérez-Arriaga, I.J., 2008. "Scenarios for the evolution of the Spanish electricity sector: Is it on the right path towards sustainability?," Energy Policy, Elsevier, vol. 36(11), pages 4057-4068, November.
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