Competitiveness is a cornerstone of decision making in the liberalised power sector. The OECD has published six reports in the series on projected costs of generating electricity, the most recent ones in conjunction with the International Energy Agency (IEA), which have proven to be helpful to member countries. Since the last publication in 2005, world economic conditions have changed drastically. The increasing prices of raw materials and commodities have a significant impact on construction costs and fossil fuel prices have been rising significantly. In the nuclear sector, advanced reactors and fuel cycle facilities are being built and will change construction, O&M and fuel cycle costs. Last but not least, the evolution of generation technologies has economic impacts.
The NEA Secretariat will thus prepare in co-operation with the IEA a new edition of its well-know Projected Costs of Generating Electricity. It is assisted in this activity by the Ad hoc Expert Group on Electricity Generating Costs (EGC). The last version of this study dates from 2005. The new project is carried out under the auspices of the working party on Nuclear Energy economics (WPNE - see link below). The study will cover cost estimates for power plants under construction, planned or under consideration for which reliable unit costs can be obtained. As in previous studies, emphasis will be placed on base load electricity generation sources, i.e. nuclear, coal and gas power. However, renewable sources, in particular wind and biomass, and co-generation power plants will be included in so far as data will be made available to support generation cost estimates.
The traditional levelised cost methodology will be adopted to evaluate generation costs. In addition, the analysis will also consider the impact of uncertainties, financing schemes, CO2 values and corporate taxes on generation costs. If adequate input data are provided, it will include a detailed analysis of nuclear fuel cycle costs, aiming at updating previous NEA publications in this field. The Electricity Generating Costs study will also provide a summary of existing studies. The project will thus include a survey and critical review of published literature on the subject matter.
The study will be conducted in co-operation with the IEA which will provide expertise on non-nuclear technologies for electricity generation. The International Atomic Energy Agency (IAEA) will be invited to participate in the study and to provide input data for non-OECD member countries.
Last updated: 2 April 2009