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The Cost of Nuclear Electricity: France after Fukushima

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  • Nicolas Boccard

Abstract

The Fukushima disaster has lead the French government to release novel cost information relative to its nuclear electricity program allowing us to compute a levelized cost. We identify a modest escalation of capital cost and a larger than expected operational cost. Under the best scenario, the cost of French nuclear power over the last four decades is 59 d/MWh (at 2010 prices) while in the worst case it is 83 d/MWh. On the basis of these findings, we estimate the future cost of nuclear power in France to be at least 76 d/MWh and possibly 117 d/MWh. A comparison with the US confirms that French nuclear electricity nevertheless remains cheaper. Comparisons with coal, natural gas and wind power are carried out to the advantage of these.

Suggested Citation

  • Nicolas Boccard, 2013. "The Cost of Nuclear Electricity: France after Fukushima," CEPR Discussion Papers 687, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:dpaper:687
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    File URL: https://www.cbe.anu.edu.au/researchpapers/CEPR/DP687.pdf
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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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