ECONOMICS

Cost's estimation

Problem of many of economic analyses is to rely on obsolete data. Therefore they are a few years behind. Prices are different today due to technology cost increase and due to money value changes. For example 1eur-2005 is not equal 1eur-2010. Misunderstandings are caused also by different basis for the calculations. Exact assumptions have not been presented in each research. Including EPC (Engineering , Procurement , Construction) or overnight cost as technology cost, excluding cost of decommissioning and wastes management, taking into consideration finance cost or not, makes studies not able to been compared directly. Taking into account cost of capital can lead to increase of initial cost over 2 times. Estimations with decommissioning cost included are generally more expensive as well. Very troublesome is estimation of nuclear waste management. Therefore, in economic studies, the problem is being omitted. Especially among analysis of companies or institutions, lobbying for nuclear power. Another problem that should be included in detailed analysis is financing source. It influences the way of calculation. If normally commercial bank credit for investors is envisaged that capital cost recovery have to be calculated for maximum 20-30 years. After that, the price can decrease until the investor want to keep the price to ensure high profit. In case where financing can be divided in all operating time, the capital recovery can be calculated in accordance to lifetime. Financial instruments like loan guarantees etc. influence interest rate and as a consequences influence overall cost of nuclear power plant.

Although usable and reliable comparison related to assumptions, point by point, would not be possible, very important are end results. They give a range of cost and present how costs have been changing in last years.

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