WHEN DESIGNING NUCLEAR POWER PLANTS, developers have historically focused on two things: incorporating the optimal reactor technology and minimising overnight construction costs - the basic cost of construction excluding the cost of finance. The reasons for this approach are clear - reactor technology is crucial, and overnight costs are the biggest barrier to entry, often influencing the bankability of a project. However, this approach overlooks a key piece of the equation - operations and maintenance (OM). Financial modelling of a typical plant with a lifespan of 60 years demonstrates that the present value of the costs incurred during the operating life, of which OM costs are by far the largest portion, greatly exceeds the present value of the overnight costs. In other words, you spend far more operating a nuclear power plant than you do building your plant.Furthermore, as small modular reactors (SMRs) enter the market, the barrier to entry posed by overnight costs will decrease. Optimising for OM costs will become more important than ever. Nuclear power plant developers and stakeholders, therefore, should optimise their designs for OM costs to stand out in what is fast becoming a crowded field of SMR designs.
展开▼
