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Revisiting the cost escalation curse of nuclear power: New lessons from the French experience

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  • Lina Escobar Rangel

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • François Lévêque

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Since the first wave of nuclear reactors in 1970 to the construction of Generation III+ reactors in Finland and France in 2005 and 2007 respectively, nuclear power seems to be doomed to a cost escalation curse. In this paper we reexamine this issue for the French nuclear power fleet. Using the construction costs from the Cour des Comptes report, that was publicly available in 2012, we found that previous studies overestimated the cost escalation. Although, it is undeniable that the scale-up ended up in more costly reactors, we found evidence of a learning curve within the same size and type of reactors. This result confirms that standardization is a good direction to look, in order to overcome the cost escalation curse.

Suggested Citation

  • Lina Escobar Rangel & François Lévêque, 2012. "Revisiting the cost escalation curse of nuclear power: New lessons from the French experience," Working Papers hal-00780566, HAL.
    • Handle: RePEc:hal:wpaper:hal-00780566
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-00780566v1
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    File URL: https://minesparis-psl.hal.science/hal-00780566v1/document
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    References listed on IDEAS

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    1. No Solar Way Around It
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    1. Andreas Schröder & Friedrich Kunz & Jan Meiss & Roman Mendelevitch & Christian von Hirschhausen, 2013. "Current and Prospective Costs of Electricity Generation until 2050," Data Documentation 68, DIW Berlin, German Institute for Economic Research.
    2. Christian von Hirschhausen & Claudia Kemfert & Friedrich Kunz & Roman Mendelevitch, 2013. "Europäische Stromerzeugung nach 2020: Beitrag erneuerbarer Energien nicht unterschätzen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(29), pages 3-13.
    3. Elena Verdolini & Laura Díaz Anadón & Erin Baker & Valentina Bosetti & Lara Aleluia Reis, 2018. "Future Prospects for Energy Technologies: Insights from Expert Elicitations," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 133-153.
    4. Berthélemy, Michel & Escobar Rangel, Lina, 2015. "Nuclear reactors' construction costs: The role of lead-time, standardization and technological progress," Energy Policy, Elsevier, vol. 82(C), pages 118-130.
    5. Boccard, Nicolas, 2014. "The cost of nuclear electricity: France after Fukushima," Energy Policy, Elsevier, vol. 66(C), pages 450-461.
    6. Iyer, Gokul & Hultman, Nathan & Fetter, Steve & Kim, Son H., 2014. "Implications of small modular reactors for climate change mitigation," Energy Economics, Elsevier, vol. 45(C), pages 144-154.
    7. Konsta Värri & Sanna Syri, 2019. "The Possible Role of Modular Nuclear Reactors in District Heating: Case Helsinki Region," Energies, MDPI, vol. 12(11), pages 1-24, June.
    8. Linares, Pedro & Conchado, Adela, 2013. "The economics of new nuclear power plants in liberalized electricity markets," Energy Economics, Elsevier, vol. 40(S1), pages 119-125.
    9. Christian von Hirschhausen, 2017. "Nuclear Power in the Twenty-First Century: An Assessment (Part I)," Discussion Papers of DIW Berlin 1700, DIW Berlin, German Institute for Economic Research.

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    Keywords

    French nuclear power; construction cost; learning effects;
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