Comparative analysis of the investment attractiveness of nuclear power plant concepts based on small and medium sized reactor modules and a large nuclear reactor

Abstract

It seems to be of current interest to consider and analyse possible electrical and non-electrical applications of small and medium sized reactors for both the nearest and more distant future. The paper presents the results of a comparative analysis of the economic attractiveness of nuclear power plant (NPP) designs based on small and medium-sized reactor modules and a large-sized reactor in order to identify conditions for increasing the investment attractiveness of NPP modular design concept. The analysis is based on the evaluation of such economic performance metrics as net present value, present value, internal rate of return, discounted payback period, and levelized cost. It was shown that, in terms of the present value and levelized costs, the NPP modular design concept is less economically attractive in comparison with the NPP design based on a large-sized reactor. In terms of the net present value, internal rate of return and payback period, the NPP modular design concept can be considered economically attractive if only the predicted learning effect is observed when the modules are constructed and the scale factor is not less than 0.5. In this case, it will be economically feasible to construct an NPP based on a small number of medium sized reactor modules. If the scale factor is not less than 0.6, one may talk about the economic attractiveness of NPP designs based on reactor modules of lower power. The impact of various debt financing schemes was analysed and it was demonstrated that, in relative terms, changes in the economic performance indicators are comparable in the implementation of the NPP modular design and a large sized reactor.