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The economics of new nuclear power plants in liberalized electricity markets

P. Linares, A. Conchado

Even after Fukushima, the nuclear debate is strong in many countries, with the discussion of its economics being a significant part of it. However, most of the estimates are based on a levelized-cost methodology, which presents several shortcomings, particularly when applied to liberalized electricity markets. Our paper provides results based on a different methodology, by which we determine the break-even investment cost for nuclear power plants to be competitive with other electricity generation technologies. Our results show that the cost competitiveness of nuclear power plants is questionable, and that public support of some sort would be needed if new nuclear power plants are to be built in liberalized markets.


Keywords: Nuclear power; Economics; Liberalized electricity markets


Energy Economics. Volume: 40 Issue: 1 Pages: S119-S125

Journal Impact Factor: JCR impact factor 3.910 (2017)

DOI reference: DOI icon 10.1016/j.eneco.2013.09.007    

Published on paper: December 2013. Published on-line: September 2013.


    Topics research:
  • *Analysis of sustainable energy policies

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