3. Economic Analysis of Fast Spectrum Reactors

Economics always plays a pivotal role in the decision process associated with the construction of any project. Accordingly, we shall endeavor in this chapter to outline the key factors that influence the cost of building a nuclear power plant—with special emphasis regarding fast spectrum reactors. It is very difficult at the present time, however, to provide firm cost estimates for fast spectrum systems because very few reactors of this type have been built in recent years and none of these could be considered fully commercial. Hence, we shall focus our discussion on comparative evaluations, i.e. citing the differences between fast spectrum systems and the current generation of light water reactors (LWRs). Specific mathematical techniques for determining actual costs, once key input numbers are known, are contained in Appendix D. Specific techniques for defining such items as the time value of money, levelized costs, etc. are detailed in this Appendix.