Argonne | Nuclear Engineering Division | IAEA Programs | Training Courses

Interregional Workshop on Financial Issues for a Decision in Countries Introducing or Expanding Nuclear Power

5 – 9 October 2015


Purpose of the course

The main objective of this workshop is to support decision makers and those responsible for developing and implementing a nuclear programme in Member States considering the introduction of nuclear power (including States in Phases 1, 2 and 3) to improve the knowledge and develop the skills and abilities needed for success in the introduction of nuclear power, with emphasis on issues relating to the national position and financing of nuclear power plants.

Workshop activities would revolve around three major inter-related objectives: (i) providing knowledge of key threshold issues a State has to consider when establishing a nuclear power programme, specifically financing options, and the actions necessary to ensure a knowledgeable decision; (ii) presentation of case studies of countries that have recently completed or are now in the process of making financial arrangements; and (iii) further strengthening the networking among emerging nuclear power countries and sharing international and field experiences.

The workshop will provide guidance and tools for the development of the necessary elements related to the establishment of a national position. The workshop will also provide tools to help Member States identify and assess the key threshold issues that affect decisions on the introduction of nuclear power.

The workshop will also cover financial issues, including alternative contracting and ownership approaches for nuclear power programmes. This will include all financial risk, contracting and ownership, economics of nuclear power, market regulations and the financing of nuclear power programmes.

Expected Outputs

The expected outputs of the workshop are:

  • Improved ability to address the challenges and issues relating to building a national position and financing nuclear power plants.
  • Better knowledge of NPP financing and funding options as well as procurement structures and better understand of contracting mechanisms including Engineering, Procurement and Construction (EPC) contracting.
  • Improved knowledge of financial risk, economics of nuclear power, and market regulations and better understanding of alternative financing mechanisms.
  • Enhanced networking opportunities among participants.

Scope and Nature

This workshop, planned for 5 working days, will be divided into the following 10 workshop modules:

Workshop Introduction and Nuclear Specificities
Module 01:     Energy-environment policies and strategies
Module 02:     Economics of nuclear power

Nuclear Policies and Building National Position
Module 03:     Building a national position
Module 04:     Estimating the impact of NPP projects on GDP & jobs

Economic and Financial Issues
Module 05:     Financing and risk allocation in nuclear power projects
Module 06:     Sources and structures of financing (debt vs equity)
Module 07:     Satisfying lenders & investors (due diligence, reputational risk etc.)
Module 08:     Risk allocation in Power Purchase Agreements (PPAs) and Engineering, Procurement and Construction (EPC) contracts

Background Information

Developing a nuclear power programme is a major undertaking that involves many complex and interrelated activities with a long duration usually about 10 to 15 years - leading up to start of operation of the first nuclear power plant. The increased interest in nuclear power in a significant number of countries has prompted the IAEA to organize since 2009, a workshop on leadership and management of nuclear power in Argonne. The five related workshops that were held in 2009, 2010, 2011, 2012 and 2013 were attended by representatives of more than 20 Member States from Africa, Asia, Europe and Latin America. These workshops, in addition to other workshop events, were very useful in supporting newcomer countries to develop skills and relationships in connection with the development of their nuclear power programmes.

Among other recommendations made during these workshop events, the IAEA was requested to give special emphasis on key threshold issues for the introduction of nuclear power, specifically approaches for financing the first nuclear power plant.

Materials

Pre-course Reading
7195-nn-build-2015 (NEA).pdf
IAEA Alternative Contracting and Ownership Structures.pdf
IAEA financing paper.pdf
The Financing of Nuclear Power Plants (NEA paper).pdf
WWLEnergy_Risk_amended.pdf

Documents from Nuclear Economics Consulting Group
#1 Nuclear Power Plants Long-Term Assets in a Short-Term World
#2 Nuclear Power & Short-Run Marginal Cost
#3 Nuclear Base Load
#4 Nuclear Lessons from Vermont Yankee Closure
#5 Revenue Certainty
#6 US state action on revenue certainty
#8 Death of nuclear power a foolish prediction
#9 Nuclear Surrender?
#10 US government & merchant nuclear

Documents from NuScale Power
NuScale-Desalination-ASME-SMR14.pdf
NuScale-Desalination-Desal-Journal.pdf
NuScale-Integration-with-Renewables_ICAPP15.pdf
NuScale-Non-Electrical-Apps-PBNC2014.pdf
NuScale-Oil-Refining-ICAPP14.pdf

Course Materials (Passcode required)
01 Megaprojects in the Energy Field-Locatelli.pdf
02 Stochastic Financial modelling-Locatelli.pdf
03 Economics and Financial Aspects of SMR (A and B)-Locatelli.pdf
04 Strategic and not monetary aspects of SMR-Locatelli.pdf
05 Load following with SMR-Locatelli.pdf

1 electricity industry-Kee.pdf
2 PPA-Kee.pdf
3 how nuclear projects fail-Kee.pdf

Contracting Structures-Murphy.pdf
Country Risk Factors-Murphy.pdf
Project Diligence by Financing Entities-Murphy.pdf
Reputational Risk-Murphy.pdf

NP Prospect for Base Load Generation-Hamilton.pdf
Energy System Analysis for NP Planning-Hamilton.pdf
Financial Analysis-1000MWvsSMR.xls
ScreeningCurves(with EIA 2013 data).xlsx

Basics-Warren.pdf
Debt Sources and Structures-Warren.pdf
EPC Contracting-Warren.pdf
Evolution of International Climate Policy-Warren.pdf
Funding and financing back-end liabilities-Warren.pdf
Overview of financing and relationship to risk management-Warren.pdf
Technical, Economic, Environmental Aspects Influencing the Competitiveness of Nuclear Power-Warren.pdf
Uranium supply-Warren.pdf

Vendor-Colbert.pdf

Nuclear Regulatory-Cunningham.pdf
Interactions-Cunningham.pdf

Insurance-McGarvey.pdf

GlobalRegionalTrends-Conzelmann.pdf

Nuclear Fission-Braun.pdf
Fuel Cycle-Braun.pdf

Debt Structures-Ameer.pdf

Nuclear Lifecycle Cost Analysis-George.pdf
Energy Policy Act of 2005-George.pdf

Risk in NPP Development-Aziz.pdf

Literature
Giorgio Locatelli Papers/A framework for the selection of the right nuclear power plant.pdf
Giorgio Locatelli Papers/Assessing the attractiveness of SMR An application of INCAS model to India.pdf
Giorgio Locatelli Papers/A_Megaproject_Research_Framework.pdf
Giorgio Locatelli Papers/Economic features of SMR.pdf
Giorgio Locatelli Papers/Financial Case Studies.pdf
Giorgio Locatelli Papers/Large and small baseload power plants Drivers to define the optimal portfolio 2.pdf
Giorgio Locatelli Papers/Learning_Across_Megaprojects (1).pdf
Giorgio Locatelli Papers/Load following with Small Modular Reactors A real options.pdf
Giorgio Locatelli Papers/Method to select the countries and scenarios more appropriate for the deployment of SMR.pdf
Giorgio Locatelli Papers/Small modular reactors A comprehensive overview.pdf
Giorgio Locatelli Papers/Small Modular Reactors Licensing constraints and the way forward.pdf
Giorgio Locatelli Papers/SMR coal and gas power plant a probabilistic analysis analysis of their financial performances and influence of CO2 cost.pdf
Giorgio Locatelli Papers/The role of the reactor size for an investment in the nuclear sector An evaluation of not financial parameters.pdf
IAEA public documents/Approaches for Assessing the Economic Competitiveness of Small and Medium Sized Reactors.pdf
IAEA public documents/IAEA_SMR_Booklet_2014.pdf
IAEA public documents/Pub1537_web.pdf
IAEA public documents/te_1555_web.pdf
IAEA public documents/trs279_web.pdf
Other public documents/emwg_guidelines.pdf
Other public documents/load-following-npp.pdf