Economics of nuclear power in decarbonized energy systems

Abstract

Many governments consider the construction of new nuclear power plants to support the decarbonization of the energy system. On the one hand, dispatchable nuclear plants can complement fluctuating generation from wind and solar, but on the other hand, escalating construction costs and times raise economic concerns. Using a detailed energy planning model, our analysis finds that even if-despite the historic trend-overnight construction costs of nuclear half to 4,000 US-$ 2018 per kW and construction times remain below 10 years, the cost efficient share of nuclear power in European electricity generation is only around 10%. This analysis still omits social costs of nuclear power, such as the risk of accidents or waste management. To recover their investment costs, nuclear plants must operate inflexibly and at utilization rates close to 90%. As a result, grid infrastructure, flexible demand, and storage are more efficient options to integrate fluctuating wind and PV generation.