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Nuclear Power Plants in the U.S. and China: Procedure for Determining and Comparing Operating and Construction Costs

Abstract

The objective of this study is to create a procedure for determining and calculating the operating and construction costs (OCC) for nuclear power plants and to identify the factors that affect them. Our study revealed patterns of growth and decline in OCC for nuclear power plants (NPPs) when considering the duration of the plant’s operation and the cost of money invested in its implementation.

Our results were derived from estimates obtained using an equation that accounts for the electricity generated by a NPP, capital costs per MWh, operating costs per MWh, time that the plant operates according to standards, electricity tariffs, plant capacities, and the cost of money. The results indicate that the calculation of OCC for NPPs should con-sider not only the technical characteristics of the plant, but also the level of tariffs, the location of the plant, and the conditions of its connection to the grid. Another important indicator is the value of money; as it declines, the OCC for the NPP tends to increase.

This comparative study uses information on nuclear power plants in the United States and the People’s Republic of China. The results of this study are recommended to be used in the development of feasibility studies for the construction of NPPs around the world. For a satisfactory indicator, the calculation of the OCC for a NPP must include the regu-larity tariff parameters, technical data, and the cost of money for the specific plant. This article is useful to energy auditors, industrial manag-ers, heads of government regulatory agencies, and university students interested in the costs of nuclear power plants.

Introduction

Developing nuclear power plants is an important way for electric-ity suppliers to meet the demand for clean energy. Compared to other alternatives, nuclear power has advantages over contenders to replace traditional coal and oil sources. For example, nuclear energy technolo-gies offer reliable and resilient energy supplies. Nuclear energy is not dependent on weather conditions, as is the case of using some types of renewable energy resources. Unlike wind or solar energy, nuclear power can produce much larger amounts of energy in a limited land area due to its high energy efficiency and power density. Relying on a relatively ubiquitous mineral for a fuel source, the technology provides electrical generation at higher capacities than fossil fuel-fired processes.

Ways to assess the economic performance of nuclear plants are important due to the extent of nuclear development. Today’s nuclear power plants function as utility-scale generation facilities. They have fission reactors and use enriched uranium-235 as the fuel source. This technology offers seemingly infinite supplies of energy and perhaps more importantly, provides base-load electrical power generation at high operating capacities [1]. With a world-wide fleet of over 800 oper-ating reactors, nuclear energy accounts for almost 10% of the world’s electrical energy production.
Nuclear reactors that generate electricity in the U.S. fall into two main categories: boiling water reactors (BWRs) and pressurized water reactors (PWRs) [2]. Both systems use Rankine cycle processes to boil water to make steam (BWRs within the reactor and PWRs outside the reactor) [2]. The steam must be cooled after it is directed through a turbine to produce electricity which necessitates their signature cooling towers.

As nuclear technologies advance, the economics of nuclear power must be considered. Cost calculation procedures allow comparative assessments with other energy sources which indicate the economic efficiency of the final product. An important aspect is the formation of the final price of electricity for consumers. In the different regions of the world electricity costs are highly variable.

There are various methods for calculating the operating and construction costs for NPPs, but many do not include all the relevant factors: electricity tariffs, plant operating time during the year, and monetary values for different countries. Our research was devoted to the development of a simplified procedure for determining the OCC for NPPs that accounts for these relevant factors.

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This article was originally published in the International Journal of Strategic Energy and Environmental Planning (IJSEEP Vol. 7, Iss. 5, 2025) by Volodymyr (Vladimir) Mamalyga, Ph.D.,Stephen A. Roosa, Ph.D., Yu Qiang, Jiyong Yan and Olha Varava.

In The News

Nuclear Power Plants in the U.S. and China: Procedure for Determining and Comparing Operating and Construction Costs

Abstract

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