NEI questions EIA figures on the future scenario for nukes

23 February 2005

America’s Nuclear Energy Institute (NEI) has slammed the Energy Information Agency’s (EIA) assessment of the nuclear contribution to the nation’s energy mix over the coming 20 years.

Following the EIA Annual Energy Outlook 2005 report which forecasts a falling contribution from nukes with no new reactors being built before 2025, the NEI has said the EIA’s figures are “completely wrong.” The EIA estimates capital costs at more than $1,900/kW installed for the first new plants, but industry figures are considerably less at around $1,400/kW installed, dropping to $1,100 - $1,200 after an initial wave of construction.

The divergence arises notably in estimates for the lead time for reactor development and in the level of subsidies available for early reactor developments. Vendors currently estimate three or four years lead time for reactors, while EIA estimates six years or more, raising projected financing costs for the projects, by including the licensing process. Similarly, reactor developers tend to assume government support for first time engineering costs of say 50% while the EIA assumptions are less favourable.




Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.