Lecture 6: Nuclear Reactor Cost Around the World and the Potential for Cost Reduction

Nuclear power costs have trended upward globally, and traditional models predicting costs will fall as more plants are built are statistically unsupported. High capital investment and rising safety requirements create significant economic hurdles, meaning that downsizing to smaller reactor designs may inadvertently increase costs rather than reduce them.

• Learning failure — Doubling the number of reactors built results in minimal price drops, as safety regulations and complex design needs prevent true efficiency gains [1:07:04].

• Construction duration — Longer build times, often caused by safety changes during construction, increase the total price through accumulated interest payments [09:31].

• Licensing constraints — Design changes after construction begins require regulatory approval, which halts progress and adds financial burden [1:09:28].

• Reactor scale — Small modular designs face a cost disadvantage, as moving from large plants to smaller units effectively increases the cost per unit of power capacity [1:03:44].

• Quality control — Prioritizing speed over safety has historically led to widespread part failures and expensive maintenance, negating initial savings [26:15].

• Government financing — Projects funded by national budgets avoid high interest charges, allowing for slower, safer construction compared to debt-financed models [29:29].

• Operational reliability — Unplanned outages create hidden costs that make low-cost initial construction more expensive over the life of the plant [17:20].

• How does reactor size impact the cost of building power plants?

• What is the relationship between construction speed and long-term maintenance costs?