Thomas, Steve (2014) What does it take to finance new nuclear power plants? Pay more for nuclear: Report 3. Documentation. Earthlife Africa, Johannesburg, South Africa.

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Abstract

Building a nuclear power plant has always been one of the most risky investment decisions because of the very poor record of nuclear power plants being built to time and cost and being operated efficiently and cheaply. The economic record of South Africa’s existing nuclear plants at Koeberg is mediocre. Both plants took significantly longer to build than expected and their reliability has been much worse than expected. In the past, this poor record has not been a concern for financiers because consumers effectively gave a cast-iron guarantee that whatever costs were incurred could be recovered from consumers. For most countries, this guarantee no longer exists, either because a competitive electricity market has been set up or an independent regulator has been set up, which only allows justifiable costs to be passed on to consumers. Obtaining finance is now therefore one of the key barriers to ordering nuclear plants. In principle, if banks are not willing to bear the risk, it could be held by consumers through guaranteed cost pass-through, taxpayers through loan guarantees, or nuclear vendors through offering fixed price terms.

Item Type:	Monograph (Documentation)
Uncontrolled Keywords:	nuclear power, finance, South Africa
Subjects:	H Social Sciences > HJ Public Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Centre for Work and Employment Research (CREW) > Public Services International Research Unit (PSIRU)
Related URLs:	Publisher
Last Modified:	14 Oct 2016 09:29
URI:	http://gala.gre.ac.uk/id/eprint/12277

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