ECONOMICS

Financing sources

Another problem is how to finance the nuclear investment. General rule is that the government should take responsibility of investment, not private investors. However, under specific conditions, for example in Poland it is not possible. Polish national debt is approaching to the constitutional threshold. The government has to put a great efforts to solve own problems without very large additional cost of nuclear power plants. In Europe, help of the government such as loan guarantees are not allowed by the EU law. Money also can not come from the customers because the market competitiveness. Other sources of funding such as bank credit are possible, but only commercial ones, based on market principles. Moreover banks are not willing to borrow their money without stable and transparent situation in country legislation and the economy. Risk of long term investment with very large capital cost is high. [128] Reasons that additionally increase it, are: difficulties with cost management during construction, risk of external influence on plant operation, variable load factor and unconditional necessity of ensuring feasibility of several activities such as waste management and decommission. At competitive market, where nuclear power plant is acting, additional problems can come true. The highest investment cost have to be borne with no concerns about the plant is in operation or not. When the electricity price is low, nuclear power plant can experience real troubles like in case of British Energy between years 2000 and 2002. It is worth to mention that in years 1996 - 1999 nuclear plants were very profitable due to high prices. The conclusion is that although nuclear power plants have good financial condition for several years, they are not protected before market disturbance and they can generate financial losses. For investors it means that funds can be easily lost. [71]

Consequences of construction delay

Nuclear power plant Olkiluoto 3 in Finland has been estimated for 3,2 billion eur ( EPR reactor, 1600 MWe). Nevertheless due to 3 years construction delay, cost has increased to 4,5 billion eur, and nobody know what would be final cost. Similar problem has occurred in Flamanville, in France, where long construction has caused increase in cost by 70%. Although Russian companies has ensured relatively low pieces, Bulgaria has stopped their construction, due to high costs. [4]

In case of any construction delay, interest during construction is rapidly increasing. The cost grows, and the unit can not operate. Fulfilling the schedule of the construction is one of the success condition of nuclear power plant. However, due to maximum shortening of the construction time, what resulted from market and financial impacts, the risk of delays is rather high.

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