Nuclear power plants have a ‘front-loaded’ cost structure, i.e. they are relatively expensive to build but relatively inexpensive to operate. Thus existing well-run operating NPPs continue to be a generally competitive profitable source of electricity, but for new construction, the economic competitiveness of nuclear power depends on several factors. First it depends on the alternatives available. Some countries are rich in alternative energy resources, others less so. Second, it depends on the overall electricity demand in a country and how fast it is growing. Third, it depends on the market structure and investment environment. Other things being equal, nuclear power’s front-loaded cost structure is less attractive to a private investor in a liberalized market that values rapid returns, than to a government that can look longer-term, particularly in a regulated market that assures attractive returns.

Private investments in liberalized markets will also depend on the extent to which energy-related external costs and benefits (e.g. pollution, GHG emissions, waste and energy supply security) have been internalized. In contrast, government investors can incorporate such externalities directly into their decisions.

Also important are regulatory risks. Political support for nuclear power varies across countries, and, within a given country, it can change over time. An investor must weigh the risk of political shifts that might require cancellation of the project midstream or introduce delays and costs that would vitiate an originally attractive investment. Different countries also have different approval processes. Some are less predictable than others and create greater risks, from the investor’s perspective, of expensive interventions or delays.

The international exchange of NPP operating experiences and, in particular, the broad dissemination of ‘lessons learned’ are essential parts of maintaining and strengthening the safe operation of nuclear power plants. Collecting, sharing and analysing operating experience are all vital safety management elements, and there is clear empirical evidence that learning from NPP operating experience has led, and continues to lead, to improvements in plant safety. International mechanisms to facilitate exchange include the World Association of Nuclear Operators (WANO) and the IAEA.

Regular meetings of the IAEA/NEA Joint Incident Reporting System are an additional part of this global exchange process, where recent incidents can be discussed and analysed in detail.

Safety indicators, such as those published by the World Association of Nuclear Operators ... improved dramatically in the 1990s. However, in some areas improvement has stalled in recent years, as in the case of unplanned scrams ... Also the gap between the best and worst performers is still large, providing substantial room for continuing improvement. Since the 1986 accident at Chernobyl, enormous efforts have been made in upgrading reactor safety features, but facilities still exist at which nuclear safety assistance should be made a priority.