Nuclear Power Financing Explorer
An interactive tool to understand the unique economic challenges of building and operating a nuclear power plant, including the critical impact of Interest During Construction (IDC).
Project Assumptions
Interest During Construction (IDC)
Overnight Cost
$10.0B
Interest During Construction
+$0.0B
Total Financed Cost
$0.0B
Over 8 years at 7% interest, the project accumulates $0.0B in interest charges (0% of overnight cost) before generating any revenue.
LCOE
$0.00 / MWh
Payback Period
Never
Total Lifetime Profit
$0.0 B
Annual Cash Flow Over Project Lifetime
Red bars show construction costs, blue bars show operating profits
Key Financing Models
Because of the high risk and long payback periods, special financing models are often required to attract investment for new nuclear projects.
Regulated Asset Base (RAB) Model
Allows developers to start earning a return on their investment during the long construction phase, paid for through a small levy on consumer energy bills. This significantly de-risks the project for investors.
Contracts for Difference (CfD)
Guarantees a fixed price (the "strike price") for the electricity the plant generates. If the market price is lower, the government pays the difference. If it's higher, the developer pays back the excess. This creates a stable and predictable revenue stream.
Government Loan Guarantees
The government agrees to cover the debt if the project developer defaults. This lowers the interest rate that private lenders charge, making the overall cost of capital cheaper for the project.