HOW TO REDUCE NUCLEAR COSTS

Nuclear power can play a key role in meeting the goals of reducing emissions and guaranteeing electricity supply by reducing the cost of new construction. In a THREAD, I explain how @OECD_NEA proposes to achieve it.
According to the @IEA Sustainable Development Scenario (SDS), new nuclear capacity will be needed in addition to ambitious lifetime extension programmes for existing nuclear power plants.
In 2019, nuclear power was not on path to reach the required output; in fact, the rate of annual capacity additions would need to at least double between 2020 and 2050 to meet the SDS target.
There are many reasons for this shortfall, but the most impactful are related to the high cost of new nuclear projects, particularly in countries that have not built nuclear plants in recent decades.
The perception that new nuclear plants carry high project risk dissuades investors and has further reduced the ability of countries to attract financing for future projects.
These issues are not present in countries that have been building plants continuously. In those countries, with their experienced project organisations and well-established supply chains, nuclear projects are being executed cost- and time-effectively.
The challenges experienced by many FOAK (First Of A Kind) projects are not inherent to the nuclear technology itself but rather depend on the conditions in which projects are being delivered and on the interactions among the various project participants involved.
The challenges experienced by many FOAK (First Of A Kind) projects are not inherent to the nuclear technology itself but rather depend on the conditions in which projects are being delivered and on the interactions among the various project participants involved.
The challenges experienced by many FOAK (First Of A Kind) projects are not inherent to the nuclear technology itself but rather depend on the conditions in which projects are being delivered and on the interactions among the various project participants involved.
Capital costs account for more than 70% of total new nuclear plant production costs. Furthermore, the cashflow structure of nuclear projects requires large amounts of capital to be mobilised upfront. Once a plant is built its operational costs are low and predictable.
Capital costs account for more than 70% of total new nuclear plant production costs. Furthermore, the cashflow structure of nuclear projects requires large amounts of capital to be mobilised upfront. Once a plant is built its operational costs are low and predictable.
Capital costs account for more than 70% of total new nuclear plant production costs. Furthermore, the cashflow structure of nuclear projects requires large amounts of capital to be mobilised upfront. Once a plant is built its operational costs are low and predictable.
RECOMMENDATIONS

1. Capitalise on lessons learnt from recent Gen-III construction projects. With the construction of several FOAK nuclear reactors completed, the nuclear industry and its supply chain have in large part redeveloped their capabilities in several OECD countries.
2. Prioritise design maturity and regulatory stability. Policy support mechanisms should include requirements for design maturity and construction readiness, and should ensure that the regulatory framework for nuclear safety remains stable and predictable throughout construction.
3. Consider committing to a standardised nuclear programme to capitalise on the series effect, multi-unit construction and continuous design and process optimisation is the most promising avenue to effectuate cost reductions.
4. Enable and sustain supply chain development and industrial performance. New-build ambitions needs to be adjusted to integrate supply chain constraints and ensure continuous activity to enable and sustain development.
4. Enable and sustain supply chain development and industrial performance. New-build ambitions needs to be adjusted to integrate supply chain constraints and ensure continuous activity to enable and sustain development.
4. Enable and sustain supply chain development and industrial performance. New-build ambitions needs to be adjusted to integrate supply chain constraints and ensure continuous activity to enable and sustain development.
5. Foster innovation, talent development and collaboration at all levels. Governments can support cost reduction opportunities arising from innovative nuclear technologies (like SMRs and Gen-IV reactors).
5. Foster innovation, talent development and collaboration at all levels. Governments can support cost reduction opportunities arising from innovative nuclear technologies (like SMRs and Gen-IV reactors).
5. Foster innovation, talent development and collaboration at all levels. Governments can support cost reduction opportunities arising from innovative nuclear technologies (like SMRs and Gen-IV reactors).
6. Support robust and predictable market and financing frameworks. Nuclear new-build projects require long-term government planning involving both specific commitments and market regulations.
6. Support robust and predictable market and financing frameworks. Nuclear new-build projects require long-term government planning involving both specific commitments and market regulations.
6. Support robust and predictable market and financing frameworks. Nuclear new-build projects require long-term government planning involving both specific commitments and market regulations.
7. Governments should create an environment that fosters a social contract with industry and society to reduce nuclear construction costs, such as the Nuclear Sector Deal in the United Kingdom.
8. Tailor government involvement to programme needs.
7. Governments should create an environment that fosters a social contract with industry and society to reduce nuclear construction costs, such as the Nuclear Sector Deal in the United Kingdom. 8. Tailor government involvement to programme needs.
7. Governments should create an environment that fosters a social contract with industry and society to reduce nuclear construction costs, such as the Nuclear Sector Deal in the United Kingdom. 8. Tailor government involvement to programme needs.
7. Governments should create an environment that fosters a social contract with industry and society to reduce nuclear construction costs, such as the Nuclear Sector Deal in the United Kingdom. 8. Tailor government involvement to programme needs.
REFERENCE

đź“– @OECD_NEA Unlocking Reductions in the Construction Costs of Nuclear: A Practical Guide for Stakeholders http://www.oecd-nea.org/ndd/pubs/2020/7530-reducing-cost-nuclear-construction.pdf
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