Abstract
Although fusion power is being developed because of its large resource base, low environmental impact and high levels of intrinsic safety, it is important to investigate the economics of a future fusion power plant to check that the electricity produced can, in fact, have a market. The direct cost of electricity of a fusion power plant and its key dependencies on the physics and technology assumptions, are calculated, as are the materials requirements. The other important aspect of costs, the external costs which can arise from effects such as pollution, accidents and waste are also given. Fusion is found to offer the prospect of a new energy source with acceptable direct costs and very low external costs. This places fusion in a strong position in a future energy market, especially one in which environmental constraints become increasingly important.
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