Managing the Financial Risk Associated with the Financing of New Nuclear Power Plant Projects

INTERNATIONAL ATOMIC ENERGY AGENCY

IAEA Nuclear Energy Series No. NG-T-4.6

English STI/PUB/1765 ¦ 978-92-0-100317-1

93 pages ¦ 33 figures ¦ € 32.00 ¦ Date published: 2017

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Description

Mitigation of the financial risks attendant on a nuclear power plant new build project is a key to ensuring project viability. This publication emphasizes how various risks — including those typically considered to be ‘engineering risks’ — will give rise to such financial risks. It then introduces the linkage between efficient financial risk allocation/mitigation and the cost of capital, and sets out a range of mechanisms which can be used to manage and allocate risks efficiently, thereby minimizing the cost of capital and enhancing project economics. At a practical level the publication provides an insight into the concerns, modes of thinking, and language which a nuclear new-build proponent may expect to encounter within the financing community as they seek to develop their project.

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Keywords

IAEA Nuclear Energy, Nuclear Power Planning and Economics, Nuclear Power Plants, NPP, Design and Construction, Finance, Nuclear Reactors, Financial Risk Management, Life Cycle, Project Financing, Risk Allocation, Costs, Risk Mitigation, Project Structure, Tools, Good Practice, WACC, Weighted Average Cost of Capital, Debt, Equity, Stakeholder, Engineering Risks, Project Economics, Assessment, Investment