Economics of nuclear power plants

Nuclear power construction costs have varied significantly across the world and in time. Large and rapid increases in cost occurred during the 1970s, especially in the United States. Recent cost trends in countries such as Japan and Korea have been very different, including periods of stability and decline in costs. New nuclear power plants typically have high capital expenditure for building plants. Fuel, operational, and maintenance costs are relatively small components of the total cost. The long service life and high capacity factor of nuclear power plants allow sufficient funds for ultimate plant decommissioning and waste storage and management to be accumulated, with little impact on the price per unit of electricity generated. Additionally, measures to mitigate climate change such as a carbon tax or carbon emissions trading, favor the economics of nuclear power over fossil fuel power. Nuclear power is cost competitive with the renewable generation when the capital cost is in the region of 2000-3000 ($/KW). The economics of nuclear power are debated. Some opponents of nuclear power cite cost as the main challenge for the technology. Ian Lowe has also challenged the economics of nuclear power. Nuclear supporters point to the historical success of nuclear power across the world, and they call for new reactors in their own countries, including proposed new but largely uncommercialized designs, as a source of new power. The Intergovernmental Panel on Climate Change (IPCC) endorses nuclear technology as a low carbon, mature energy source which should be nearly quadrupled to help address soaring greenhouse gas emissions. Solar power has very low capacity factors compared to nuclear, and solar power can only achieve so much market penetration before (expensive) energy storage and transmission become necessary. This is because nuclear power "requires less maintenance and is designed to operate for longer stretches before refueling" while solar power is in a constant state of refueling and is limited by a lack of fuel that requires a backup power source that works on a larger scale.