Understand and Share Risks for Competitive Nuclear Projects

The essential characteristics for structuring a nuclear project, is “a suitable sharing of risks and benefits”, a new report from the World Nuclear Association concludes. The Association stated the aim of the report titled – Nuclear Power Economics and Project Structuring, is to highlight that new nuclear build is justified in many countries on the strength of today’s economic criteria and identifies the key risks associated with a nuclear project and how these may be managed to support a business case for nuclear investment.

“The business case for nuclear ultimately depends on the structure of risk allocation between operators, investors, governments, suppliers and customers,” the report says. It concludes that there is “no single way to structure a nuclear project; a number of project models can succeed.” The essential characteristic for structuring a nuclear project, the report says, is “suitable for sharing risks and benefits”.

The report added that “structuring a nuclear new-build project for success requires the identification and understanding of the various risks associated with a project of such magnitude and complexity.” “Projects must be structured to reduce and share risks among key stakeholders in a way that is both equitable and that encourages each project participant to fulfill its responsibilities”, the Association says.

One of the key stakeholders mentioned in the report are the governmental bodies. For a nuclear power project to be successful it needs government support “in the form of policies that affirm its value and which establish a framework for its operations”, the report added. It also stated that government bodies from the start should “commit to nuclear power as part of national energy strategy”.

What are the other types of risks involved? How much control over the risks do each key stakeholders have to hold responsibility for?