ECONOMICS

Cost's elements

To organize the discussion over nuclear power cost, below cost types are presented. Such description is necessary because large number of reports do not exactly define what costs are calculated.

Capital expenditure called shortly capital cost contains several things:

  • EPC cost (Engineering, Procurement, Construction) - cost of technology, its construction and overall preparation to start operating. This cost does not include financial costs, which depends on interest rate, loan period and building construction time
  • Owner's costs - cost that have to be borne to prepare environment for facility and to ensure proper operation, such as as land, cooling towers, infrastructure, transmission grid cost.
  • Financial cost such as interest during construction (IDC)
  • Financial cost such as credit payment and capital recovery factor
  • Financial cost connected with possible escalation and risk

    • Operating and maintenance cost include all costs indispensable for unit operation. It is both fixed and variable O&M cost.

    Fuel cost - cost of all direct fuel, its management and storage

    Decommissioning cost - cost of nuclear facility utilization to "green grass"

    Estimations are made in accordance to the above costs elements. Overnight cost it is only EPC cost with additional owner's costs. Part of financial costs such as interest during construction, are added in total cost. Only all included (All - in) cost contains all financial elements. The end result of calculation should be cost of producing electricity (busbar cost). It includes EPC, owner's, all financial, operating fuel, decommissioning and waste disposal costs.
    [117], [129]

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