What is the economic cost of nuclear power? That turns out to be a very difficult question to answer.
The United States and other countries have plentiful experience building and operating nuclear power plants. Currently 438 nuclear reactors with a combined capacity of 379,000 megawatts generate more than 10% of the total electricity used worldwide.
The US has the largest fleet, with 99 reactors generating almost 20% of US electricity. France has the second-largest, with 58 reactors producing 77% of its electricity. The Chinese fleet of 27 reactors generates under 3% of its electricity.
Nevertheless, there is great uncertainty about the cost of building new plants. The existing fleet in the US and most developed countries is very old, dating back to a period of intense growth in the 1960s and 1970s. In the US, the most recent construction permit for an operating reactor was issued in 1978, although completion work on a couple of stalled projects and “uprates” – capital refurbishment that increases capacity – have occurred at a number of units.
New construction fell off in other developed countries, too. The few additions made since 1990 were mostly in Japan, Korea, Eastern Europe, Russia and China.
Since 2000, however, there has been renewed interest in constructing new nuclear capacity, partially due to the dramatic increase in fossil fuel prices before the financial crisis and also growing concern about CO2 emissions from fossil fuels. Unfortunately, it’s been difficult to know how much it costs to build new plants because of this lack of recent experience.
The table below shows an estimate by the US Energy Information Administration (EIA) of the future cost of electricity from new nuclear plants compared with the cost from new natural gas-fired generators and utility-scale solar photovoltaic (PV) units.
EIA
Among the three options shown, nuclear power is right in the middle, with total costs in 2012 of about $96 per megawatt hour (MWh), most of which involves capital construction costs. On the high end is solar power at $130 per MWh, and gas at the low end at $64 per MWh.
The estimates for the capital cost of nuclear – for plants entering service in 2019 – assume that units can be built without the disastrous delays and overruns that plagued the US industry in the past, and which have plagued some recent projects, too. And the nuclear estimate also doesn’t take into account the benefit of certain subsidies currently available for some new construction.