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Fission for Funds: The Financing of Nuclear Power Plants

Auteur	J.Weibezahn, B.Steigerwald
	6-01-0-10-98.pdf
Datum	2024
Classificatie	6.01.0.10/98 (KOSTEN)
Voorkant

Fission for Funds: The Financing of Nuclear Power Plants
Weibezahn, J., & Steigerwald, B. (2024). Copenhagen School of Energy Infrastructure.

1. INTRODUCTION
The increasing decarbonisation pressure together with recent energy price shocks
is fuelling a revived debate on new nuclear generation capacity in many European
states. In this report, we provide a synopsis of financing models currently being
applied or under development for newly built nuclear power plants in Europe,
catering to the special risk profile of such projects.
In February 2024, the European Commission released a recommendation for a 
reenhouse gas reduction target of 90% by 2040 (compared to 1990) for the European 
Union on the way to climate neutrality in 2050 (European Commission 2024). The 
power sector is expected to reach full decarbonisation by as early as 2040. 
So-called small modular reactors (SMRs) are expected to play a role in 
decarbonisation by the early 2030s. A new European Industry Alliance on Small 
Modular Reactors has been launched alongside the aforementioned communication 
to accelerate this development. 
Also, in the British Energy Security Plan (UK Government 2023b), nuclear power 
plays a major role with the stated ambition to deploy 24 gigawatts (GW) by 2050 
– including SMR projects, corresponding to around 25% of the projected electricity 
demand. On the global scale, at the COP28 in Dubai on December 2, 2023, 22 states 
– of which 15 are in Europe, and of those 12 are EU member states – have committed 
to working on tripling nuclear power capacity by 2050 compared to 2020 levels. 
The increasing decarbonisation pressure, together with recent energy price shocks 
in the wake of the COVID-19 pandemic and the war in Ukraine, is fuelling a revived 
debate on new nuclear generation capacity in many European states, partially driven
by nuclear industry lobby organisations – be it large- capacity conventional 
reactors or small-capacity SMRs