Ways of Financing the Construction of New Nuclear Power Plants and the Threats Associated with Them

Vol.18,No.4(2016)

Abstract
The paper deals with the financing of new nuclear power plants. After a period of stagnation and decline, nuclear energy is regaining approval in the EU, as some member states are constructing or preparing to construct new nuclear power plants. Yet the development of new facilities is facing enormous challenges. One of the most significant challenges is the very costly financing of nuclear projects. This paper analyses the methods of financing new nuclear projects and attempts to offer a classification of possible financing schemes; then, on the basis of such a classification, it tries to identify the threats attached to particular schemes that states face when deciding to develop nuclear projects. The threats were derived from an analysis of the investment process and from the identification of participants in nuclear investments and their relations. The analysis reveals a greater set of threats when foreign and private entities are involved in financing. The relevance of threats and the associated risks, however, must be assessed in the context of each particular nuclear project.

Keywords:
nuclear energy; nuclear new build; financing; risks; financing models; European Union
Author biographies

Tomáš Dráb

Interní doktorand, Katedra financí, Ekonomicko-správní fakulta, Masarykova univerzita, Lipová 41a, 602 00 Brno.

Tomáš Vlček

Odborný asistent, Katedra mezinárodních vztahů a evropských studií, Fakulta sociálních studií, Masarykova Univerzita, Joštova 10, 602 00 Brno.
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