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A new study, Business Risks and Costs of New Nuclear Power (PDF, 336 KB), by a leading expert in power plant costs, Craig A. Severance, finds nuclear power too costly to pursue.

The report affirms that many U.S. utilities are diversifying through a combination of aggressive load reduction incentives to customers, better grid management, renewable energy sources and natural gas. However, some U.S. utilities have less aggressive load reduction programs and are now exploring new nuclear power. Severance points out that the reason U.S. utilities stopped ordering nuclear power plants was their conclusion that nuclear power’s business risks and costs were too high.

The report notes that utilities promoting new nuclear power claim it is their least costly option, but independent studies have concluded new nuclear power is not economically competitive. Because of a history of cost overruns, construction delays and the fact that new generation designs have never been constructed, there is a major business risk that nuclear power will be more costly than projected, the report says. Furthermore, recent construction cost estimates (not counting operation or fuel costs) run from 17 to 22 cents/kWh when the nuclear facilities come online, and generation cost estimates - including fuel and operation and maintenance, but not distribution - are likely to be from 25 to 30 cents/kWh, which is triple current U.S. electricity rates. According to the report, this high cost may destroy the very demand the plant was built to serve.

• Download the report: “Business Risks and Costs of New Nuclear Power,” (PDF, 336 KB)
• Read more: “The staggering cost of new nuclear power” (Climate Progress, 1/5/09)
• Related: “Report: Underappreciated Energy Efficiency Boom Slashed U.S. Energy Consumption 50% Since 1970,” (e-Newswire, 5/28/08)