The Financing of Nuclear Power Plants - A Major Challenge Facing the Industry

GlobalData, August 2012, Pages: 7

The Financing of Nuclear Power Plants - A Major Challenge Facing the Industry

Summary

The financing of nuclear power projects has been a major hurdle obstructing the development of the global nuclear power industry for a long time. Various factors have been observed to increase the difficulties of financing such projects, such as uncertain market conditions, questioning the return on investment and its payback period, huge initial capital costs which are constantly escalating, and a reduction in financing options for nuclear power projects. These have collectively contributed to the economic challenges faced by the nuclear power industry. In comparison to other sectors in the power generation industry, nuclear plants require one of the highest amounts of capital infusion, which discourages investors in the industry and encourages investment in other cheaper technologies, such as coal and natural gas. In addition, renewable energy technologies are benefiting from increasing government subsidies, leading to a further decline in the economic appeal of nuclear power.

Scope

- The report focuses on the financing hurdles faced by the nuclear industry
- Identifies the impact of rising safety concerns on financial requirements of nuclear plants
- Specifies the impact of anti nuclear policies on market conditions

Reasons to buy

- Understand the various factors dettering investment in nuclear plants
- Facilitate investment decision-making based on current challenges faced by the nuclear industry
- Understand how uncertain policies impact market conditions

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1

1.1 List of Tables
1.2 List of Figures
2 Summary
3 The Financing of Nuclear Power Plants - A Major Challenge Facing the Industry
3.1 Lack of Adequate Financing Hinders the Development of Nuclear Power
3.2 Huge Initial Capital Costs act as a Deterrent for Constructing Nuclear Power Plants
3.3 Uncertain Policies Impacting the Construction of New Nuclear Power Plants Turn Investors Bearish
4 Appendix
4.1 Sources
4.2 Abbreviations
4.3 Methodology
4.4 Contact Us
4.5 Disclaimer

1.1 List of Tables
Table 1: Decommissioning Cost of Nuclear Reactors by Reactor Type, $/kW
Table 2: Abbreviations

1.2 List of Figures
Figure 1: Comparative Cost Breakup of Nuclear, Coal and Natural Gas Power Generating Plants, IAEA, 2011

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