Levelized Costs for Nuclear, Gas and Coal for Electricity, under the Mexican Scenario

In the case of new nuclear power stations, it is necessary to pay special attention to the financial strategy that will be applied, time of construction, investment cost, and the discount and return rate. The levelized cost quantifies the unitary cost of the electricity (the kWh) generated during the lifetime of the nuclear power plant; and allows the immediate comparison with the cost of other alternative technologies. The present paper shows levelized cost for different nuclear technologies and it provides comparison among them as well as with gas and coal electricity plants. For the calculations we applied our own methodology to evaluate the levelized cost considering investment, fuel and operation and maintenance costs, making assumptions for the Mexican market, and taking into account the gas prices projections. The study also shows comparisons using different discount rates (5% and 10%), and some comparisons between our results and an OECD 1998 study. The results are i n good agreement and shows that nuclear option is cost competitive in Mexico on the basis of levelized costs