Publication Laka-library:
Economics of Nuclear Power from Heavy Water Reactors (2005)
| Author | Ramana, D’Sa, Reddy |
 |
6-01-0-10-69.pdf |
| Date | April 2005 |
| Classification | 6.01.0.10/69 (COSTS) |
| Front | 
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From the publication:
Economics of Nuclear Power
from Heavy Water Reactors
Using a discounted cash flow methodology, this paper performs a detailed analysis of the
current costs of electricity from two of the Department of Atomic Energy’s heavy water
reactors. It compares these costs to that from a recently constructed coal-based thermal
power plant. The cost so computed is a sensitive function of the discount rate (a measure of
the value of capital) used and the results show that for realistic values of the discount rate,
electricity from coal-based thermal power stations is cheaper than nuclear energy.
M V RAMANA, ANTONETTE D’SA, AMULYA K N REDDY
T
he Department of Atomic Energy (DAE) has been pro- had concluded that other options like coal and hydroelectric
moting nuclear power as the “obvious choice for India power were cheaper than nuclear power under realistic assump-
to solve its energy problems in the long-term” [Bhoje tions and “even if the projections and scenarios indicate large
2001]. Such promises that nuclear power would play an important demand-supply gaps in the future, the most expensive way of
role in satisfying India’s energy needs have been routinely offered bridging these gaps is through nuclear power plants” [Reddy
since the 1950s, but the actual growth of nuclear power in the et al 1990].
country has been extremely modest. As of January 2005, the total The present study was undertaken with the hope that over the
installed nuclear power generation capacity is 2,770 MW, less last decade more information on the expenditures actually in-
than 3 per cent of the total installed electricity generation capacity curred would have become publicly available, allowing a better
in the country.1 and more reliable estimate of the cos