Newcomer countries, welcome to the 'Nuclear Club' but before you join, plan ahead and take example from those before you; issues relating to construction contracts in countries developing new build nuclear power plants

摘要

With a global push to reduce dependence on burning fossil fuels (oil, gas and coal) which emit greenhouse gases, many countries continue to consider nuclear power as a clean, proven, reliable and alternative baseload supply of electricity. Nuclear generation is further expected to play an increasingly important role in improving energy supply security in addition to meeting national targets on climate change. Ian Wood (Partner) and Rob Broom (Associate) from the Energy and Natural Resources team at Squire Patton Boggs examine the issues faced by countries, which are considering or planning their first nuclear power plant (these countries are referred to in this article as 'Newcomer Countries'). The authors discuss: (i) the various construction contract models and key project risks that ought to be addressed prior to entering into the construction contract, where possible, drawing on case studies where such risks have materialized, (ii) classification of which risks are quantifiable and which are not, (iii) possible methods on how to address and mitigate such risks, and (iv) the key issues that need to be addressed in construction contracts. Furthermore, by reference to the current climate, the authors have provided a summary of the challenges and key considerations associated with Newcomer Countries developing a new build nuclear project.