FAQ - Economic Modelling Working Group

This page provides a comprehensive overview of the economic evaluation methodologies and tools developed for Generation IV nuclear energy systems. It covers key topics such as capital investment costs, levelised unit energy cost (LUEC), and the flexibility of economic assessment tools like G4ECONS. The FAQ also addresses how these tools apply to different nuclear systems, the benefits of early economic analysis, and the unique economic considerations for Small Modular Reactors (SMRs).

Presentations
Economics
Updated on 02/12/2024

The economic objectives for Generation IV nuclear systems emphasize life cycle cost benefits and controllable financial risks. This page clarifies key concepts such as Total Capital Investment Cost (TCIC) and Levelised Unit Energy Cost (LUEC), explaining their calculation and how they can be obtained using tools like G4ECONS. The FAQ section delves into the development phases where economic evaluations are crucial, the suitability of these tools for different nuclear systems, and their comparison with methodologies developed by entities like the IAEA. It also addresses external factors influencing the economics of nuclear plants, the flexibility needed for grid integration, and tactics to improve economic competitiveness. Furthermore, the FAQ details co-generation, energy arbitrage, and the significance of conducting economic analyses early in the design stage.

The questions answered below are the following:

  1. What are the economic goals for Generation IV systems?
  2. What is the total capital investment cost?
  3. What is the levelised unit energy cost of electricity?
  4. What are the tools available for economic evaluation?
  5. Can these tools be used for any type of nuclear system?
  6. Where can I obtain G4ECONS or the Cost Estimating Guidelines?
  7. At what stage of development should the economic assessment be performed?
  8. Are Generation IV systems assessed using the GIF economic methodology?
  9. Are there other methodologies available for performing economic assessment of nuclear systems?
  10. How does GIF methodology differ from that developed by IAEA?
  11. What external factors affect the economic viability of nuclear plant?
  12. What is the difference between levelised cost and systems cost?
  13. What are the flexibility requirements for nuclear plant for integration in the grid with significant share of variable renewable resources?
  14. What considerations are required during the development of nuclear systems for flexible operation?
  15. What can Generation IV reactors offer to improve economic competitiveness?
  16. What are the options for economic viability of nuclear plants in the emerging low-carbon economy?
  17. How can co-generation applications be used to improve a reactor's economic competitiveness?
  18. What is energy arbitrage? How can energy storage be used to improve a reactor's economic competitiveness?
  19. What unique economic considerations are there for Small Modular Reactors?
  20. What are the benefits of performing an economic analysis early in the design process?
  21. Are there Generation IV Reactors that are SMRs?
  22. Where can I find more information?