30 Apr (NucNet): There is strong evidence from projects outside Europe and the US that cost reductions of around 35% can be made to nuclear new build projects in the UK, a report published today says.
The report by the UK-based Energy Technology Institute says successful new build programmes have lowered costs by consciously maximising ways to reduce costs across areas of nuclear plant planning and construction such as supply chain, labour, governance and construction itself.
In all, the report identifies eight “key cost drivers” and 35 significant opportunities for cost reduction in new-build projects in the UK.
According to the report, costs could be reduced by at least 35%. However, this assumes all project stakeholders are pursuing cost reduction opportunities – not just the project developer and the engineering procurement contractor (EPC). “Collective action is required by all project stakeholders, including government, to bring about the integrated programme of activities necessary to realise this potential,” the report says.
An effective cost reduction programme could also reduce the duration and risk of nuclear projects, changing the perception of nuclear construction risk and reducing financial costs.
The report puts the total capital cost of the Flamanville-3 nuclear plant under construction in France at a little over $10,000 per kilowatt. The Olkiluoto-3 plant under construction in Finland is about $9,600/kW, the report says.
The report puts the total capital cost of construction in China in a range of about $1,700 to $5,000/kW. In Russia the cost is about $2,500 to around $3,600/kW.
Outside the UK and the US, national nuclear programmes with a consistent focus on cost reduction enable multiple “learner effects.” Continuity through ongoing construction allows companies to systematically realise learnings, keeps supply chains at a level of readiness, enables the same EPC consortium and labourers to work from project to project, and allows for economies of scale for components and materials (both nuclear and non-nuclear grade).
Long-term, politically-supported fleet programmes in Japan, South Korea, and China have demonstrated repeatable low costs. Some of these cost reductions were also experienced in the UK, US, France, and Sweden during the height of new build programmes in the 1960s through 1980s. Such low cost nuclear build programmes require long-term cooperation of all key stakeholders involved in plant deliver and relentless focus on driving efficiency and savings across all key cost drivers.
Independent project reviewer Dr Tim Stone said the report has shed a great deal of light on the factors which cause some new nuclear projects to be on time and on budget, and some not.
The report is online: https://bit.ly/2HCMRf7
