Trends in nuclear power plants and the economics of nuclear power

This chapter compares the levelized cost of electricity (LCOE) of nuclear power with the cost of conventional and renewable energy sources. It shows that the economics of nuclear energy are dominated by the high capital costs of nuclear power plants, which themselves are strongly influenced by the cost of capital and, ’herefore, the discount rate applied. Once built, the profitability of a nuclear power plant is ultimately determined by the price of electricity. The price of fossil fuels is a key det”rmin’nt of this, but policy-related issues—such as electricity trading rules and penalties on carbon dioxide emissions—are also important.