Costs Of Decommissioning Nuclear Power Plants

While refurbishments for the long-term operation of nuclear power plants and for the lifetime extension of such plants have been widely pursued in recent years, the number of plants to be decommissioned is nonetheless expected to increase in future, particularly in the United States and Europe. It is thus important to understand the costs of decommissioning so as to develop coherent and cost-effective strategies, realistic cost estimates based on decommissioning plans from the outset of operations and mechanisms to ensure that future decommissioning expenses can be adequately covered. This study presents the results of an NEA review of the costs of decommissioning nuclear power plants and of overall funding practices adopted across NEA member countries. The study is based on the results of this NEA questionnaire, on actual decommissioning costs or estimates, and on plans for the establishment and management of decommissioning funds. Case studies are included to provide insight into decommissioning practices in a number of countries.

This report, based upon data provided by 26 countries, examines the decommissioning of nuclear power plants of varying reactor types, sites and sizes. It assesses differences in decommissioning costs and the management of financial liabilities arising after nuclear power plants are shut down, and explores the effects of national policies and industrial strategies.

There is concern about the potential cost to decommission nuclear power plants and the implications of competition within the electricity industry. This report determines if (1) there is adequate assurance that the Nuclear Regulatory Commission's (NRC) licensees are accumulating sufficient funds for decommissioning, and (2) NRC is adequately addressing the effects of electricity deregulation on the funds that will eventually be needed for decommissioning. This report reviews the adequacy of electric utilities' efforts to accumulate funds to eventually decommission their nuclear power plants after the plants have been permanently shut down.

Cost estimation for the decommissioning of nuclear facilities can vary considerably in format, content and practice both within and across countries. These differences may have legitimate reasons but make the process of reviewing estimates complicated and the estimates themselves difficult to defend. Hence, the joint initiative of the OECD Nuclear Energy Agency (NEA), the International Atomic Energy Agency (IAEA) and the European Commission (EC) was undertaken to propose a standard itemisation of decommissioning costs either directly for the production of cost estimates or for mapping estimates onto a standard, common structure for purposes of comparison. This report updates the earlier itemisation published in 1999 and takes into account experience accumulated thus far. The revised cost itemisation structure has sought to ensure that all costs within the planned scope of a decommissioning project may be reflected. The report also provides general guidance on developing a decommissioning cost estimate, including detailed advice on using the structure.