Structuring and financing nuclear projects

OECD; Nuclear Energy Agency

doi:https://doi.org/10.1787/9789264079229-6-en

The Financing of Nuclear Power Plants

Many countries have recognised that greater use of nuclear power could play a valuable role in reducing carbon dioxide emissions. However, given the high capital cost and complexity of nuclear power plants, financing their construction often remains a challenge. This is especially true where such financing is left to the private sector in the context of competitive electricity markets.

This study examines the financial risks involved in investing in a new nuclear power plant, how these can be mitigated, and how projects can be structured so that residual risks are taken by those best able to manage them. Given that expansion of nuclear power programmes will require strong and sustained government support, the study highlights the role of governments in facilitating and encouraging investment in new nuclear generating capacity.

English Also available in: French

https://doi.org/10.1787/9789264079229-en

Chapter

Structuring and financing nuclear projects

Nuclear Energy Agency

The methods and sources of financing potentially available for nuclear power projects are not in principle different from those available for any other large power sector or infrastructure project. The first step for those seeking to promote a nuclear project is to mitigate the financial risks involved in building and operating a nuclear plant in the country concerned to the extent possible. It is then the residual financial risks, and how the project is structured to allocate these risks among the various parties involved, which determines whether the project can be successfully financed.

English Also available in: French

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