‘Forgetting by doing’?
Real escalation in reactor investment costs
Drawing on largely unknown public records, the paper reveals for the first time both absolute as well as yearly and specific reactor costs and their evolution over time. Its most significant finding is that even this most successful nuclear scale-up was characterized by a substantial escalation of real-term construction costs.
Fig. 13. Average and min/max reactor construction costs per year of completion date for US and France versus cumulative capacity completed
We’ve known for a while that the cost of new nuclear power plants in this county have been soaring (see Nuclear power: The price is not right and Exclusive analysis: The staggering cost of new nuclear power).
Before 2007, price estimates of $4000/kw for new U.S. nukes were common, but by October 2007 Moody’s Investors Service report, “New Nuclear Generation in the United States,” concluded, “Moody’s believes the all-in cost of a nuclear generating facility could come in at between $5,000 – $6,000/kw.” That same month, Florida Power and Light, “a leader in nuclear power generation,” presented its detailed cost estimate for new nukes to the Florida Public Service Commission. It concluded that two units totaling 2,200 megawatts would cost from $5,500 to $8,100 per kilowatt — $12 billion to $18 billion total! In 2008, Progress Energy informed state regulators that the twin 1,100-megawatt plants it intended to build in Florida would cost $14 billion, which “triples estimates the utility offered little more than a year ago.” That would be more than $6,400 a kilowatt. (And that didn’t even count the 200-mile $3 billion transmission system utility needs, which would bring the price up to a staggering $7,700 a kilowatt).