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Risk Assessment in Construction Process in Nuclear Sector within the Central and Eastern Europe

Author

Listed:
  • Tomas Vlcek

    (Department of International Relations and European Studies, Energy Security Program, Faculty of Social Studies, Masaryk University, Jostova 10, 602 00, Brno, Czech Republic,)

  • Martin Jirusek

    (Department of International Relations and European Studies, Energy Security Program, Faculty of Social Studies, Masaryk University, Jostova 10, 602 00, Brno, Czech Republic,)

  • James Henderson

    (The Oxford Institute for Energy Studies, 57 Woodstock Road, Oxford OX2 6FA, United Kingdom.)

Abstract

This article assesses various risks arising within the process of building, running and decommissioning of nuclear units with the Central and Eastern Europe (CEE) where nuclear power is still perceived as a reliable and widely utilized energy source. The region is specific for its relations with Russia which is a dominant provider of technologies and fuel thanks to former ties between the region and the Soviet Union. The debate on building new nuclear producing units with Russian companies as potential contractors is thus echoing old concerns about the rise of Russian influence and one-sided dependency. The main conclusions are twofold. First, financing is the key issue to be addressed in order to conduct a successful project with current electricity prices undermining any new project not only in the region but also in Europe as a whole. Second, precise formulation of project documentation is crucial to avoid hidden costs, delays and potential disputes with contractors.

Suggested Citation

  • Tomas Vlcek & Martin Jirusek & James Henderson, 2015. "Risk Assessment in Construction Process in Nuclear Sector within the Central and Eastern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 482-493.
    • Handle: RePEc:eco:journ2:2015-02-12
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    More about this item

    Keywords

    Central and Eastern Europe; Nuclear Energy; Power Generation; Russian Federation;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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