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© 2016 Nuclear Energy Agency © 2016 Nuclear Energy Agency/OECD/Paris, France
Costs of Decommissioning
Nuclear Power Plants
“International Conference on
Financing of Decommissioning”
Stockholm, Sweden
20-21 September 2016
Geoffrey Rothwell, PhD, Principal Economist
Division of Nuclear Development,
Nuclear Energy Agency, OECD
Nuclear Energy Agency
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© 2016 Nuclear Energy Agency/OECD/Paris, France
NEA (2016). Costs of Decommissioning
Nuclear Power Plants. Paris: OECD.
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This NEA study’s aim is to review NPP
decommissioning costs and funding
practices adopted by NEA member
countries, based on the collection and
analysis of survey data gathered via a
dedicated questionnaire.
The work has been done with the NEA’s
Radioactive Waste Management
Committee (RWMC) and its standing
groups: the Working Party on
Decommissioning and Dismantling
(WPDD) and Decommissioning Cost
Estimation Group (DCEG). We also had
close co-operation with the IAEA and the
European Commission.
https://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdf
https://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdfhttps://www.oecd-nea.org/ndd/pubs/2016/7201-costs-decom-npp.pdf
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© 2016 Nuclear Energy Agency/OECD/Paris, France
What is “decommissioning”?
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Decontamination
Decontamination &
Demolition (D&D)
D&D plus all waste
management costs
(including or not
Spent Nuclear Fuel)
US NRC
EC (ISDC)
+ Site Restoration
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© 2016 Nuclear Energy Agency/OECD/Paris, France
History of NEA D&D Cost Reports
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NEA Report of 1986: 6 Countries
NEA Report of 1991: 9 Countries – 9 data points
NEA Report of 2003: 24 Countries – 53 data points
– updated 2013 USD (2001 USD x 1.44 – Producer Price Index) http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-
plants_9789264104334-en
PWRs: 300 to 700 USD/kWe – av. 460 USD/kWe (see p. 59)
VVERs: 300 to 700 USD/kWe – av. 475 USD/kWe (see p. 60)
BWRs: 450 to 800 USD/kWe – av. 600 USD/kWe (see p. 61)
NEA Report of 2015: 14 Countries – 11 data points
PWRs: 4 sets of estimated costs (3 of which are generic)
VVERs: 2 sets for VVERs
BWRs: 3 sets (one generic estimate)
GCRs/Magnox: “11 sets” (UK NDA Magnox fleet/GCR in Spain)
mailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-enmailto:http://www.oecd-ilibrary.org/nuclear-energy/decommissioning-nuclear-power-plants_9789264104334-en
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© 2016 Nuclear Energy Agency/OECD/Paris, France
International Structure for
Decommissioning Costing in ISDC
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ISDC COST ITEM (ISDC was produced by NEA with the EC and the IAEA)
http://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdf
01 PRE, Pre-decommissioning
02 SHUT, Facility shutdown
03 ENCLO, Additional activities for safe enclosure
04 DISM, Dismantling activities within the controlled area (aggregate into “D&D”)
05 WASTE, Waste processing, storage & disposal ( aggregate into “WASTE” )
06 INFRA, Site infrastructure and operation (aggregate into “MANAGE”)
07 DEMO, Conventional dismantling demolition and site restoration (aggregate into “D&D”)
08 PM, Project management, engineering & site support (aggregate into “MANAGE”)
09 R&D, Research and development
10 FUEL, Fuel and nuclear material
11 MISC, Miscellaneous expenditures
TOTAL
http://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdfhttp://www.oecd-nea.org/rwm/reports/2012/ISDC-nuclear-installations.pdf
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Outcome of the Survey
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Per PLANT SITE - ISDC Level 1 Categories:
(millions of 2013 USD)
NEA. Costs of Decommissioning Nuclear Power Plants (2016)
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
ES-P1 ES-P2 CH-P1 FR-P1 ES-B1 ES-B2 SE-B1 F1-V1 SK-V1
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Aggregated Outcomes
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Percentages of ISDC Level 1 Categories:
NEA. Costs of Decommissioning Nuclear Power Plants (2016)
22%
43%
12%
50%
29%
43%
62%
44%
29%
4%
5%
10%
19%
6%
8%
10%
8%
29%
46%
44%
33%
14%
55%
41%
23%
5%
29%
28%
7%
46%
17% 11%
7% 5%
42%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ES-P1 ES-P2 CH-P1 FR-P1 ES-B1 ES-B2 SE-B1 FI-V1 SK-V1
ISDC 04+07 ISDC 05 ISDC 08+06 Others
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Compare with US Cost Estimates
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With the lack of observations, we turned to the US data as presented in a Pacific Northwest National Laboratory (PNNL) report done for the US NRC, but never published!
Assessment of the Adequacy of the 10 CFR 50.75(c) Minimum Decommissioning Fund Formula
http://pbadupws.nrc.gov/docs/ML1306/ML13063A190.pdf
‐ Completed costs for 4 decommissioned NPPs
‐ Site-specific estimates for several NPPs - PWRs & BWRs (shut down or approaching retirement)
Compatibility and comparability with ISDC? ‐ Different structures for cost allocation:
Work Breakdown Structure (WBS)
‐ Therefore, we hired a consultant to work out the correspondence between WBS and ISDC
http://pbadupws.nrc.gov/docs/ML1306/ML13063A190.pdf
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Converting US D&D Data to ISDC
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The D&D cost estimation data presented in PNNL (2011)
are based on a WBS from two different D&D cost
estimation companies.
We applied the conversion method to a limited number of
cases, covering many possible combinations: for example,
PWR and BWR, and immediate and deferred dismantling.
Converted ISDC data were then used to calculate
percentage distributions of D&D costs for
• (1) cost estimates and
• (2) actual cost data for accomplished projects as presented
in the PNNL report for four cases:
Haddam Neck, Trojan, Main Yankee and Rancho Seco.
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© 2016 Nuclear Energy Agency/OECD/Paris, France
US Cost estimates vs Actual Costs
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Estimates for Immediate D&D
LS U1 La Salle Unit 1
LS U2 La Salle Unit 2
CP U1 Comanche Peak Unit 1
CP U2 Comanche Peak Unit 2
DA Duane Arnold
KW Kewaunee
“Completed” Projects
HNP Haddam Neck
HNP Haddam Neck (“revised”)
MY Main Yankee = $500M
TNP Trojan NPP
RS Rancho Seco NPP
ISDC 04+07 (D&D), ISDC 05 (Waste) and ISDC 06+08 (Management)
for converted data and reformatted data for “completed” projects
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
LS U1 LS U2 CP U1 CP U2 DA KW HNP HNP-R MY TNP RS
06+08
05
04+07
RPV to Hanford
DOC Bankrupt
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Conclusions Regarding Cost Drivers
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Pre-decommissioning costs:
To encourage early planning, these should be paid for out of
decommissioning funds.
Cost of managing Spent Nuclear Fuel (SNF):
The cost of managing SNF is not always included in the cost of
decommissioning. To make cost estimates more transparent
over time, these should not be included in decommissioning
cost estimates.
Immediate versus deferred D&D:
The selection of immediate versus deferred decommissioning,
is primary factor influencing the overall costs of D&D and
limits the validity of quantitative comparisons between cost
estimates.
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© 2016 Nuclear Energy Agency/OECD/Paris, France
Conclusions Regarding Funding
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Funding Policy and Strategy:
There are considerable variations between countries in the details
of formal funding requirements. To increase comparability,
countries should try to standardize funding requirements, e.g.,
Germany and Sweden, where utilities share ownership in many
nuclear power plants.
During operation:
Regular updating of decommissioning cost estimates is an
important prerequisite for establishing adequate funds for future
decommissioning.
Nonetheless, decommissioning funding arrangements may still be
vulnerable to the failure of a fund to reach a sufficient level of
financing to cover the full actual costs of decommissioning, e.g.,
due to earlier than expected closure.
Therefore, it is better to collect more funds early, and less funds
later, if they are not necessary.