London (Platts)--19Sep2007

High nuclear plant capital costs may discourage even developed countries from 
building new plants, the head of the China Atomic Energy Authority, Sun Qin, 
told an IAEA-organized meeting in Vienna September 18. 

Sun said that based on China's experience, a 1,000-MW "Generation II" nuclear
power unit -- of the type China has built at Daya Bay and Ling Ao -- has a
total capital cost of $1.5 billion to $2 billion, or $1,500 to $2,000 per
installed kilowatt. "The figures are even higher for Generation III" plants
that were the subject of a bid won by Westinghouse early this year, he said. 
He said CAEA believes that "the cost of a nuclear power plant should be about
$1,500/kW" and the cost of power should be 5 US cents per kWh. He said that
once a plant is operating, the power is competitive, but "we must resolve the
problem of initial investment." The Chinese government has used a variety of
tax breaks, preferential credits and other incentives to encourage nuclear
power plant construction, he told the IAEA's Scientific Forum in Vienna.