IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v402y2025ipas0306261925016186.html

The total costs of energy transitions with and without nuclear energy

Author

Listed:
  • Moen, Kamilla Aarflot
  • Hjelmeland, Martin
  • Nøland, Jonas Kristiansen

Abstract

Within energy system analysis, there is discourse regarding the role and economic benefits of nuclear energy in terms of overall system costs. The reported findings range from considerable drawbacks to substantial benefits, depending on the chosen models, scenarios, and underlying assumptions. This article addresses existing gaps by demonstrating how subtle variations in model assumptions significantly impact analysis outcomes. Historically, uncertainties associated with nuclear energy costs have been well documented, whereas renewable energy costs have steadily declined and have been relatively predictable. However, as land availability increasingly constrains future renewable expansion, development is shifting from onshore to offshore locations, where cost uncertainties are greater and anticipated cost reductions are less reliable. This study emphasizes this fundamental shift, highlighting how uncertainties in future renewable energy costs could strengthen the economic case of nuclear energy within fully integrated sector-coupled energy systems, especially when the costs of all technologies and weather conditions are set in the moderate range. Focusing specifically on Denmark, this article presents a thorough sensitivity analysis of renewable energy costs and weather conditions within anticipated future ranges, providing a nuanced perspective on the role of nuclear energy. Ultimately, the findings underscore that, when examining total annual system costs, the differences between scenarios with low and high nuclear energy shares are minimal and are within ±5 % for the baseline assumptions, while updated adjustments reduce this variation to ±1 %.

Suggested Citation

  • Moen, Kamilla Aarflot & Hjelmeland, Martin & Nøland, Jonas Kristiansen, 2025. "The total costs of energy transitions with and without nuclear energy," Applied Energy, Elsevier, vol. 402(PA).
  • Handle: RePEc:eee:appene:v:402:y:2025:i:pa:s0306261925016186
    DOI: 10.1016/j.apenergy.2025.126888
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261925016186
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2025.126888?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Nian, Victor & Mignacca, Benito & Locatelli, Giorgio, 2022. "Policies toward net-zero: Benchmarking the economic competitiveness of nuclear against wind and solar energy," Applied Energy, Elsevier, vol. 320(C).
    2. Weng, Tingwei & Zhang, Guangxu & Wang, Haixin & Qi, Mingliang & Qvist, Staffan & Zhang, Yaoli, 2024. "The impact of coal to nuclear on regional energy system," Energy, Elsevier, vol. 302(C).
    3. Moon, Hee Seung & Song, Yong Hyun & Lee, Ji Woo & Hong, Sanghyun & Kim, Eunsung & Kim, Seung Wan, 2024. "Implementation cost of net zero electricity system: Analysis based on Korean national target," Energy Policy, Elsevier, vol. 188(C).
    4. Kartal, Mustafa Tevfik & Kılıç Depren, Serpil & Ayhan, Fatih & Ulussever, Talat, 2024. "Quantile-based heterogeneous effects of nuclear energy and political stability on the environment in highly nuclear energy-consuming and politically stable countries," Applied Energy, Elsevier, vol. 365(C).
    5. Golombek, Rolf & Lind, Arne & Ringkjøb, Hans-Kristian & Seljom, Pernille, 2022. "The role of transmission and energy storage in European decarbonization towards 2050," Energy, Elsevier, vol. 239(PC).
    6. repec:hal:journl:hal-04295932 is not listed on IDEAS
    7. Kan, Xiaoming & Hedenus, Fredrik & Reichenberg, Lina, 2020. "The cost of a future low-carbon electricity system without nuclear power – the case of Sweden," Energy, Elsevier, vol. 195(C).
    8. Campos, José & Csontos, Csaba & Munkácsy, Béla, 2023. "Electricity scenarios for Hungary: Possible role of wind and solar resources in the energy transition," Energy, Elsevier, vol. 278(PB).
    9. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    10. Seck, Gondia Sokhna & Krakowski, Vincent & Assoumou, Edi & Maïzi, Nadia & Mazauric, Vincent, 2020. "Embedding power system’s reliability within a long-term Energy System Optimization Model: Linking high renewable energy integration and future grid stability for France by 2050," Applied Energy, Elsevier, vol. 257(C).
    11. Pfenninger, Stefan & Staffell, Iain, 2016. "Long-term patterns of European PV output using 30 years of validated hourly reanalysis and satellite data," Energy, Elsevier, vol. 114(C), pages 1251-1265.
    12. Thellufsen, Jakob Zinck & Lund, Henrik & Mathiesen, Brian Vad & Østergaard, Poul Alberg & Sorknæs, Peter & Nielsen, Steffen & Madsen, Poul Thøis & Andresen, Gorm Bruun, 2024. "Cost and system effects of nuclear power in carbon-neutral energy systems," Applied Energy, Elsevier, vol. 371(C).
    13. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    14. Hjelmeland, Martin & Nøland, Jonas Kristiansen & Backe, Stian & Korpås, Magnus, 2025. "The role of nuclear energy and baseload demand in capacity expansion planning for low-carbon power systems," Applied Energy, Elsevier, vol. 377(PA).
    15. Xiong, Weiming & Wang, Yu & Mathiesen, Brian Vad & Lund, Henrik & Zhang, Xiliang, 2015. "Heat roadmap China: New heat strategy to reduce energy consumption towards 2030," Energy, Elsevier, vol. 81(C), pages 274-285.
    16. Johnson, Samuel C. & Papageorgiou, Dimitri J. & Mallapragada, Dharik S. & Deetjen, Thomas A. & Rhodes, Joshua D. & Webber, Michael E., 2019. "Evaluating rotational inertia as a component of grid reliability with high penetrations of variable renewable energy," Energy, Elsevier, vol. 180(C), pages 258-271.
    17. Sorknæs, Peter & Nielsen, Steffen & Lund, Henrik & Mathiesen, Brian Vad & Moreno, Diana & Thellufsen, Jakob Zinck, 2022. "The benefits of 4th generation district heating and energy efficient datacentres," Energy, Elsevier, vol. 260(C).
    18. Hansen, Kenneth & Mathiesen, Brian Vad & Skov, Iva Ridjan, 2019. "Full energy system transition towards 100% renewable energy in Germany in 2050," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 1-13.
    19. Cárdenas, Bruno & Ibanez, Roderaid & Rouse, James & Swinfen-Styles, Lawrie & Garvey, Seamus, 2023. "The effect of a nuclear baseload in a zero-carbon electricity system: An analysis for the UK," Renewable Energy, Elsevier, vol. 205(C), pages 256-272.
    20. Abdussami, Muhammad R. & Verma, Aditi, 2025. "Future energy landscapes: Analyzing the cost-effectiveness of nuclear-renewable integrated energy Systems in Retrofitting of coal power plants," Applied Energy, Elsevier, vol. 377(PA).
    21. Staffell, Iain & Pfenninger, Stefan, 2016. "Using bias-corrected reanalysis to simulate current and future wind power output," Energy, Elsevier, vol. 114(C), pages 1224-1239.
    22. Lei Duan & Robert Petroski & Lowell Wood & Ken Caldeira, 2022. "Stylized least-cost analysis of flexible nuclear power in deeply decarbonized electricity systems considering wind and solar resources worldwide," Nature Energy, Nature, vol. 7(3), pages 260-269, March.
    23. Haddeland, I. & Hole, J. & Holmqvist, E. & Koestler, V. & Sidelnikova, M. & Veie, C.A. & Wold, M., 2022. "Effects of climate on renewable energy sources and electricity supply in Norway," Renewable Energy, Elsevier, vol. 196(C), pages 625-637.
    24. Collet, L. & Gailhard, J. & Guénand, Y. & Monteil, C. & Oueslati, B. & Peton, P.-Y. & Martinet, C. & Bono, C., 2025. "Future nuclear power outages in a changing climate - A case study on two contrasted French power plants," Energy, Elsevier, vol. 320(C).
    25. Gondia Sokhna Seck & Vincent Krakowski & Edi Assoumou & Nadia Maïzi & Vincent Mazauric, 2020. "Embedding power system's reliability within a long-term Energy System Optimization Model: Linking high renewable energy integration and future grid stability for France by 2050," Post-Print hal-02418375, HAL.
    26. Lund, Henrik & Thellufsen, Jakob Zinck & Sorknæs, Peter & Mathiesen, Brian Vad & Chang, Miguel & Madsen, Poul Thøis & Kany, Mikkel Strunge & Skov, Iva Ridjan, 2022. "Smart energy Denmark. A consistent and detailed strategy for a fully decarbonized society," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    27. Xie, Wanni & Atherton, John & Bai, Jiaru & Farazi, Feroz & Mosbach, Sebastian & Akroyd, Jethro & Kraft, Markus, 2024. "A nuclear future? Small Modular Reactors in a carbon tax-driven transition to clean energy," Applied Energy, Elsevier, vol. 364(C).
    28. Batini, Nicoletta & Di Serio, Mario & Fragetta, Matteo & Melina, Giovanni & Waldron, Anthony, 2022. "Building back better: How big are green spending multipliers?," Ecological Economics, Elsevier, vol. 193(C).
    29. Deepak Selvakumar, R. & Mohammad, Abdulrahman H. & Dai, Siyuan & Ding, Yulong & Alkaabi, Ahmed K., 2025. "Economic feasibility analysis of LHTES integration with a nuclear power plant," Applied Energy, Elsevier, vol. 392(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thellufsen, Jakob Zinck & Lund, Henrik & Mathiesen, Brian Vad & Østergaard, Poul Alberg & Sorknæs, Peter & Nielsen, Steffen & Madsen, Poul Thøis & Andresen, Gorm Bruun, 2024. "Cost and system effects of nuclear power in carbon-neutral energy systems," Applied Energy, Elsevier, vol. 371(C).
    2. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    3. Lund, H. & Østergaard, P.A. & Yuan, M. & Sorknæs, P. & Thellufsen, J.Z., 2025. "Energy balancing and storage in climate-neutral smart energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 209(C).
    4. Groissböck, Markus & Gusmão, Alexandre, 2020. "Impact of renewable resource quality on security of supply with high shares of renewable energies," Applied Energy, Elsevier, vol. 277(C).
    5. Pastore, Lorenzo Mario & de Santoli, Livio, 2025. "Socio-economic implications of implementing a carbon-neutral energy system: A Green New Deal for Italy," Energy, Elsevier, vol. 322(C).
    6. Christensen, Toke Borg Kjær & Lund, Henrik & Sorknæs, Peter, 2024. "The role of thermal energy storages in future smart energy systems," Energy, Elsevier, vol. 313(C).
    7. Géremi Gilson Dranka & Paula Ferreira, 2020. "Electric Vehicles and Biofuels Synergies in the Brazilian Energy System," Energies, MDPI, vol. 13(17), pages 1-22, August.
    8. Gul, Eid & Baldinelli, Giorgio & Bartocci, Pietro & Shamim, Tariq & Domenighini, Piergiovanni & Cotana, Franco & Wang, Jinwen & Fantozzi, Francesco & Bianchi, Francesco, 2023. "Transition toward net zero emissions - Integration and optimization of renewable energy sources: Solar, hydro, and biomass with the local grid station in central Italy," Renewable Energy, Elsevier, vol. 207(C), pages 672-686.
    9. Yuan, Meng & Vad Mathiesen, Brian & Schneider, Noémi & Xia, Jianjun & Zheng, Wen & Sorknæs, Peter & Lund, Henrik & Zhang, Lipeng, 2024. "Renewable energy and waste heat recovery in district heating systems in China: A systematic review," Energy, Elsevier, vol. 294(C).
    10. Sorknæs, Peter & Thellufsen, Jakob Zinck & Knobloch, Kai & Engelbrecht, Kurt & Yuan, Meng, 2023. "Economic potentials of carnot batteries in 100% renewable energy systems," Energy, Elsevier, vol. 282(C).
    11. Behrang Shirizadeh & Philippe Quirion, 2023. "Long-term optimization of the hydrogen-electricity nexus in France," Post-Print hal-04347126, HAL.
    12. Yang, Yong & Østergaard, Poul Alberg & Wen, Wen & Zhou, Peng, 2024. "Heating transition in the hot summer and cold winter zone of China: District heating or individual heating?," Energy, Elsevier, vol. 290(C).
    13. Ringkjøb, Hans-Kristian & Haugan, Peter M. & Seljom, Pernille & Lind, Arne & Wagner, Fabian & Mesfun, Sennai, 2020. "Short-term solar and wind variability in long-term energy system models - A European case study," Energy, Elsevier, vol. 209(C).
    14. Simon Hilpert, 2020. "Effects of Decentral Heat Pump Operation on Electricity Storage Requirements in Germany," Energies, MDPI, vol. 13(11), pages 1-19, June.
    15. Christos Agathokleous & Jimmy Ehnberg, 2020. "A Quantitative Study on the Requirement for Additional Inertia in the European Power System until 2050 and the Potential Role of Wind Power," Energies, MDPI, vol. 13(9), pages 1-14, May.
    16. Pampa Sinha & Kaushik Paul & Sanchari Deb & Sulabh Sachan, 2023. "Comprehensive Review Based on the Impact of Integrating Electric Vehicle and Renewable Energy Sources to the Grid," Energies, MDPI, vol. 16(6), pages 1-39, March.
    17. Thimet, P.J. & Mavromatidis, G., 2022. "Review of model-based electricity system transition scenarios: An analysis for Switzerland, Germany, France, and Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    18. Arévalo, Paul & Cano, Antonio & Jurado, Francisco, 2024. "Large-scale integration of renewable energies by 2050 through demand prediction with ANFIS, Ecuador case study," Energy, Elsevier, vol. 286(C).
    19. Laha, Priyanka & Chakraborty, Basab, 2021. "Cost optimal combinations of storage technologies for maximizing renewable integration in Indian power system by 2040: Multi-region approach," Renewable Energy, Elsevier, vol. 179(C), pages 233-247.
    20. Nikita Belyak & Steven A. Gabriel & Nikolay Khabarov & Fabricio Oliveira, 2023. "Renewable Energy Expansion under Taxes and Subsidies: A Transmission Operator's Perspective," Papers 2302.10562, arXiv.org, revised Apr 2024.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:402:y:2025:i:pa:s0306261925016186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.