Structuring investment for nuclear build

A nuclear discussion: Part 3

In the previous two papers in the Deloitte Nuclear Discussion Series it has been argued that the market will begin to consider building new nuclear power stations in earnest when the economics of nuclear power are favourable, and that the one factor likely to drive an improvement in the relative economics of nuclear power is long-term clarity regarding the regime for pricing carbon emitted by fossil fuel plants.

In this paper we discuss some of the issues that will need addressed in the event that potential investors conclude the economics of nuclear power are now favourable in the UK context, and begin to consider how to structure these investments. These issues include:

• a discussion of the current differences between investing in a new nuclear power plant and a fossil fuel plant
• the differences between investing in a single plant or a fleet of new plants
• risk allocation
• the relative roles of the Government and the private sector.

To read the full article, download the PDF attachment below.

Learn more about our nuclear discussion series:
Part 1: Reaction required - the role of carbon pricing
Part 2: Clearing the air - moving towards a long term carbon price
Part 4: The power to deliver - is current market design supportive of the nuclear power generation?