Modelling the Economics of a New Nuclear Power Plant in Switzerland

Financing a new nuclear power plant is challenging right from the beginning and the problem of very high capital costs during the construction phase is not the only one. Long planning periods with high risk capital as well as many political influences during a long decision and planning process are the factors that are complicating the economic modelling. Nevertheless, the Net Present Value (NPV) and the Internal Rate of Return (IRR) which are calculated by discounting forecasted future cash flows are important numbers for decision makers. But these numbers strongly depend on the scenarios and input data used during the calculations. This study offers an overview of present Swiss electricity situation and the economics of the existing Swiss Nuclear Power Plants. Furthermore, a modelling tool will be introduced which allows comparing different scenarios for the whole life cycle of a nuclear power plant (planning, licensing, construction, commercial operation, decommissioning). In the third part, this study will show on a calculation example both the range of results and the different influences of escalation rates or higher costs by means of a calculation example. (authors)