Economic efficiency of the nuclear power industry and social aspects of its development

• Main Authors: Artem S Lukyanets, Canh Toan Nguyen, Evgeniya M Moiseeva
• Format: Article
• Language: English
• Published: Peoples’ Friendship University of Russia (RUDN University) 2018-12-01
• Series: RUDN Journal of Economics
• Subjects: nuclear power; development; environment; economic efficiency; life standards; geopolitical position
• Online Access: http://journals.rudn.ru/economics/article/viewFile/20753/16751

The article attempts to develop a system of parameters for an objective and comprehensive assessment of the efficiency of the nuclear power industry in terms of its contribution to the country’s economic and social development, as well as its environmental well-being and its geopolitical position. Currently, nuclear power industry makes up a significant part of the energy supplies in the developed countries throughout the world. However, in the developing economies, including those of East and Southeast Asia, it plays a less prominent role. Nevertheless, in recent years, China has been the leader in commissioning new atomic facilities, thanks to the consistent implementation of its state program for the development of the nuclear power industry. Forecasts indicate that in the near future, the share of atomic energy will remain stable and account for about 10 % of all global energy capacity, which is confirmed by the estimates made during the study. However, in the long term nuclear energy cannot be ignored as an economically efficient and environmentally friendly source of energy, as well as a factor in improving the quality of life of the population when developing a strategy for the sustainable development of a country. The article examines the already existing assessment criteria for the economic efficiency of nuclear power plants (NPPs), and proposes new standards for the assessment of its contribution to the development of the community and a country’s stance on the global political stage. The article also identifies the main obstacles to the further development of the industry in the modern world. The research showed that the main specific feature of an NPP operation from the economic point of view is extremely high initial construction and commissioning costs, with relatively low further operation costs, which determines long payback lines and liquidity shortages reducing the attractiveness of such projects for potential investors. These peculiarities determine the leading role of state authorities in the launch, operation and modernization of nuclear power facilities.