NUCLEAR COSTSIN CONTEXT
November 2021

In 2020, the average total
generating cost for nuclear energy
was $29.37 per megawatt-hour(MWh). The 2020 total generating
costs were not only 4.6 percent
lower than in 2019 but also were
35 percent below 2012 costs,
surpassing the nuclear industry’s
Delivering the Nuclear Promise(DNP) initiative.¹ Total generating
costs include capital, fuel andoperating costs—costs necessary
to produce electricity but not to own
and operate a nuclear power plant.
Cost information for the U.S. nuclear
fleet is collected by the Electric
Utility Cost Group (EUCG) with prioryears converted to 2020 dollars for
accurate comparisons.

THE FULL COST OF OWNING &OPERATING A NUCLEAR PLANT
The intent of the cost data collected by EUCG
is to perform benchmarking comparisons on
operation and maintenance and capital costs
among nuclear power plant operators. The
total generating costs presented in this paper
do not represent the full costs of operations,
as it does not include market and operationalrisk management, property taxes, depreciationand interest costs, spent fuel storage costs
or returns on investment that would be key
factors in decision-making about continued
operation of a nuclear plant.
Risk is a significant cost component ofoperating a nuclear power plant. As baseload
power suppliers, nuclear power plants do notrespond to market signals in the same way
peaking power plants do and may incur losses
based on market price volatility that does notaffect other generating technologies. The
immense amount of power that nuclear plants
produce also amplifies the potential losses
due to these changes in electricity market
prices. This type of risk is known as market
risk, which is the risk borne by nuclear power
plant operators due to volatility in electricity
market prices.
Nuclear power plants also face operationalrisks. Because nuclear power plants are
fixed cost assets, meaning their costs do notvary proportionally to their electricity output,
any unforeseen loss in generation due toequipment failures or forced outages will
increase the plant’s cost per megawatt-hour,sometimes dramatically. Additionally, whena plant experiences an unplanned outage, it
must also procure additional power for thegrid due to contractual obligations, which,due to market dynamics, is typically higher for
nuclear plants than the payments they would
have received if operating.

of refueling outages in 2019 compared to the previous two years.
Due to the operating cycles of US nuclear reactors, fewer refuelingoutages occur every third year, which reduces the overall refuelingcost contribution and lowers the average costs for multi and single
reactor plants in that year. Additionally, the COVID-19 pandemic’s
impact on industry costs is yet unclear.

In order for owners to sustain the operationof a nuclear power plant, the cost of theassociated risk must be covered. It is vital forthe nuclear power industry to be recognized
for its positive externalities related to carbonfree electricity generation, but at a levelthat also accounts for inherent market andoperational risks.

© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

1 The 2019 total generating costs reflect a significantly lower number

2

TOTAL GENERATING COSTS
The 4.6 percent reduction in total generating costs year over year is due to a 7.6 percent decline in both
fuel and capital expenditures and a 2.7 percent decline in operations costs. The 35 percent reduction
in total generating costs since 2012 is due to a 29 percent decrease in fuel costs, 57 percent decreasein capital expenditures and 27 percent decrease in operations. Prior to the 2012 peak, nuclear total
generating costs had increased steadily over the previous decade. The 2020 total generating costs andoperations costs are the lowest since EUCG started collecting industry-wide detailed data in 2002.

U.S. Nuclear Plant Costs ($/MWh in 2020 dollars)
Year

Fuel

CapitalOperatingTotal Generating

2002

6.26

4.29

20.33

30.88

2004

5.77

6.18

20.27

32.22

2007

5.61

6.69

20.85

33.14

2010

7.38

10.22

22.74

40.33

2011

7.74

11.16

24.10

43.00

2012

8.11

12.42

24.86

45.39

2015

7.46

8.70

22.77

38.93

2016

7.25

7.27

22.03

36.55

2017

6.80

7.01

21.65

35.46

2018

6.55

6.40

20.37

33.32

2019

6.23

5.78

18.78

30.79

2020

5.76

5.34

18.27

29.37

2019 – 2020 Change

-7.6%

-7.6%

-2.7%

-4.6%

DNP (2012-2020)-29.0%-57.0%-26.5%-35.3%
Source: Electric Utility Cost Group

Approximately 80 percent of the electricity generated from nuclear power in the U.S. comes from plants
with multiple reactors. The economies of scale allow plant operators to spread costs over more generation,
resulting in a lower total generating cost. In 2020, the average total generating cost at multiple-unit plants
was $27.03 per MWh compared to $39.64 per MWh for single-unit plants.² The average total generating
cost at single-unit plants increased 2 percent compared to 2019, while multiple-unit plant costs declined bynearly 6 percent. While fuel costs decreased significantly year over year for both single-unit and multipleunit plants, capital and operating costs increased for single-unit plants and decreased for multiple-unit
plants from 2019 to 2020. The average total generating costs for an operator with only one plant was$31.78 per MWh compared to $28.68 per MWh for owners of multiple plants. There was no one primary
driver for the decline in costs for either one-plant operators or multiple-plant operators.
2The data provided are based on averages across the operating fleet. Individual plants may vary notably from the average due to factors such as
geographic location, local costs and the timing of refueling outages.

© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

3

2020 Cost Summary ($/MWh)Total Generating

Category

Plants / Sites

Fuel

CapitalOperations

All U.S. 3

56

$5.76

$5.34

$18.27$29.37Single-Unit

20

$5.76

$7.55

$26.33$39.64Multiple-Unit

36

$5.76

$4.84

$16.43$27.03

One Plant

12

$5.89

$5.80

$20.10$31.78Multiple Plants

44

$5.72

$5.21

$17.75$28.68(Fuel + Capital+ Operating)Plant Size

Operator

Source: Electric Utility Cost GroupIn 2020, the average total generating cost for plants in the wholesale market was $27.46 per MWhcompared to $31.02 per MWh for plants in the regulated markets. The average total generating cost forplants in wholesale markets increased just under 1 percent compared to 2019, while total generating costs
for plants in regulated markets declined by 9 percent. While fuel costs decreased significantly for plants
in both wholesale and regulated markets, capital and operating costs increased for wholesale plants anddecreased for regulated plants from 2019 to 2020. The average total generating costs for Boiling Water
Reactor (BWR) plants was $29.96 per MWh and Pressurized Water Reactor (PWR) plants was$29.07 per MWh. BWRs saw 10.4% and 4.4% reductions in capital and operating costs, respectively, and
PWRs saw 6.1% and 1.8% reduction in capital and operating costs, respectively.

2020 Cost Summary ($/MWh)Total Generating

Category

Number of Plants /
Sites

Fuel

CapitalOperating

All U.S.

56

$5.76

$5.34

$18.27$29.37Wholesale

26

$5.27

$3.63

$18.56$27.46

Regulated

30

$6.18

$6.81

$18.02$31.02

BWR

20

$5.67

$5.29

$19.00$29.96

PWR

37

$5.80

$5.37

$17.90$29.07(Fuel + Capital+ Operating)MarketType

Source: Electric Utility Cost Group

3Two power reactors were prematurely retired in 2020 (Indian Point 2 and Duane Arnold), and one power reactor prematurely retired in early 2021
(Indian Point 3); their costs are included here.

© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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CAPITAL COSTS
Industrywide, capital expenditures in 2020 decreased to $4.21 billion from $4.68 billion in 2019, comparedto the peak of $9.52 billion in 2012 (all in 2020 dollars).⁴ Capital investment saw a step-change increasearound 2003 followed by another step-change increase in 2009, before peaking in 2012. These trends are
the result of a few major investment categories: upgrades related to license extensions of plants, uprates,and safety-related investments post-September 11th and post-Fukushima. Since 2012, capital costs havedeclined 57% as these programs have been completed.
As companies prepared plants for operation after the initial 40-year license and additional 20-year license
renewals, a series of vessel head replacements, steam generator replacements and other upgrades havebeen completed. As a result of these investments, 94 reactors have received their initial license renewal
as of August 2021,⁵ and 6 reactors have received a second license renewal.⁶ However, nine reactors thatreceived initial license renewals have since ceased operations prematurely.
Power uprates have been a priority for the industry, with over 8,000 megawatts of electricity capacity
approved by the U.S. Nuclear Regulatory Commission. Of this, over 7,500 megawatts of electricity is at
89 of the operating reactors.⁷ Capital expenditures on uprates and items necessary for operation beyond
40 years have moderated as most plants are completing these efforts. Investments in uprates peaked at$2.73 billion in 2012 but declined to $66 million in 2020 (all numbers in 2020 dollars).
While some of this decrease has been offset in other areas where spending has increased, capital
expenditures decreased notably between 2018 and 2020. Capital expenditures to meet regulatory
requirements increased from $694 million in 2006 to over $2.05 billion in 2010 and peaked at $2.17 billion
in 2014, before dropping to $409 million in 2020. This increase began with significant investments after
September 11th to enhance security, followed by expenditures for post-Fukushima items, which peaked at$1.23 billion in 2015, before falling to $8.3 million in 2020. As the Fukushima-related safety upgrades havenearly been completed, regulatory capital expenditures have reduced below 2006 levels. The following
chart breaks down capital costs since 2010 in billions of 2020 dollars.

Nuclear Industry Capital Expenditures, 2010 to 2020 (in 2020 dollars)$ Billions (in 2020 dollars)

10
9
8
7
6
5
4
3
2
1
-

2010

2011

2012

Capital Spares
Information Technology

2013

2014

2015

2016

Regulatory
Enhancements

2017

2018

2019

2020

Infrastructure (Non-Power Block)
Sustaining
Source: Electric Utility Cost Group

4As capital costs are larger, often cyclic investments that are less dependent on the megawatt-hours of production,
capital costs are presented below in billions of dollars and adjusted to 2020 dollars.

5U.S. Nuclear Regulatory Commission: Status of Initial License Renewal Applications and Industry Initiatives. August 2021.
https://www.nrc.gov/reactors/operating/licensing/renewal/applications.html

6U.S. Nuclear Regulatory Commission: Status of Subsequent License Renewal Applications. August 2021.
https://www.nrc.gov/reactors/operating/licensing/renewal/subsequent-license-renewal.html

7Nuclear Energy Institute: U.S. Nuclear Plant Actual and Expected Uprates by Plant. May 2021.
https://www.nei.org/resources/statistics/us-nuclear-plant-actual-and-expected-uprates© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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OPERATIONS
Operations costs increased from $20.33 per MWh in 2002 to $24.86 per MWh in 2012, before falling to$18.27 per MWh in 2020. In 2020, operations costs showed a 2.7 percent reduction compared to 2019
and a 26.5 percent reduction compared to the peak in 2012. Operations costs include categories such as
licensing, security, maintenance and human resources and are presented in dollars per megawatt-hourbecause they are associated with the scale of electricity production.
The increase in operations costs between 2002 and 2012 was not driven by any single category.
Operations costs have remained relatively flat over the past decade, until the declines of the last three
years, which are concentrated in support services and work management. Across the different cost types,
industry labor costs totaled to roughly $11 billion in 2020, accounting for more than half of operations
costs—a share which has remained roughly the same since 2014. The chart below breaks down operations
spending since 2010 by cost type in 2020 dollars per megawatt-hour.

Nuclear Industry Operations Cost, 2010 – 2020 ($/MWh, 2020 dollars)$/MWh (in 2020 dollars)

25
20
15
10
5
-

2010

2011

2012

Engineering (ENG)
Fuel Management (NF)
Training (TR)

2013

2014

2015

2016

Loss Prevention (LP)Operations (OP)Work Management (WM)

2017

2018

2019

2020

Materials and Services (MS)Support Services (SS)
Source: Electric Utility Cost GroupThe nuclear industry adjusted its operations to safely operate and maintain its fleet throughout the
COVID-19 pandemic, while prioritizing the health and safety of its employees. These adjustments included
impacts on the day-to-day on-site operations, as well as refueling and maintenance outages. The longerterm impact of COVID-19 on nuclear industry costs is not clear at this stage, but there is an expectation ofsome minor adjustments due to maintenance deferrals during the peak of the pandemic.

© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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FUEL
Fuel costs represent approximately 20 percent of the total generating cost. Fuel costs experienced anincrease from 2009 to 2013, largely as a result of an escalation in uranium prices, which peaked in 2008.
Since uranium is purchased far in advance of refueling and resides in the reactor for four to six years, theeffect of this commodity price spike persisted for a long time after the price increase actually occurred.
The recent drop in uranium spot prices have caused utilities to move toward shorter fuel purchase cycles.
The chart below breaks down fuel expenditures since 2010.

$ Billions (in 2020 dollars)

Nuclear Industry Fuel Costs, 2010 to 2020 (in 2020 dollars)
7
6
5
4
3
2
1
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: Electric Utility Cost GroupQUARTILES
The following tables provide the costs by quartiles for each of the cost categories above. Within each cost
category, nuclear power plants are divided into four equal quartiles, with lowest cost plants in Quartile
1 (Q1) and highest in Quartile 4 (Q4). The values shown for each quartile are the costs for the plant at
the bottom of that quartile, also known as “end points.”⁸ For example, if Q1 included 15 plants, the value
displayed below under Q1 would be equivalent to the cost of the 15th plant in that category, and any plantwith a lower cost would be in the first quartile. The fourth quartile plants are those with costs above the Q3
endpoint. Plants may be in different quartiles for different cost categories depending on their performancewith respect to their peers in that specific cost category.

Fuel Costs by Quartile (in 2020 dollars)($ per MWh)

Q1

Q2

Q3

Fuel Costs

$5.28

$5.63

$6.48
Source: Electric Utility Cost Group

Capital Expenditures by Quartile (in 2020 dollars)($ per MWh)

Q1

Q2

Q3

Capital Expenditures

$2.49

$4.60

$7.11
Source: Electric Utility Cost Group

8If plants are unevenly divided by 4, the midpoint between the highest value of the previous and the lowest value of the next quartile is used.

© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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Operations Costs by Quartile (in 2020 dollars)($ per MWh)

Q1

Q2

Q3

Operations Costs$15.10$17.78$23.80Source: Electric Utility Cost Group

Total Generating Costs by Quartile (in 2020 dollars)($ per MWh)

Q1

Q2

Q3

Total Generating Costs$24.54$29.13$35.32
Source: Electric Utility Cost Group

Since 2014, the quartiles for the total generating costs for plants have steadily decreased. The percent
decrease for each total generating cost quartile was about 20 percent, meaning the cost declines were
not concentrated in either the lowest or the highest cost plants but rather were evenly distributed acrossall plants. The 2020 total generating costs of plants in Quartile 3 have dropped below the 2014 total
generating costs of plants in Quartile 2, and similarly the 2020 total generating costs of plants in
Quartile 2 have dropped below the 2014 total generating costs of plants in Quartile 1. This consistency
across the quartiles may be attributable to knowledge-sharing efforts emphasized through the industry’s
Delivering the Nuclear Promise initiative.

$50

Total Generating Costs by Quartile (in 2020 dollars)

$/MWh

$40

$30

$20

$10

$-

2014

2015

2016
Q1

2017
Q2

2018
Q3

2019

2020

Average
Source: Electric Utility Cost Group© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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THE COST VERSUS VALUE OF NUCLEAR ENERGY
In spite of the cost reductions experienced by the nuclear fleet, plants have been forced to close
prematurely. Twelve reactors in ten states have ceased operations prematurely, resulting in the loss of
78.1 million megawatt-hours of clean electricity annually. The majority of reactors prematurely shut downin the last decade did so at least in part due to market pressures, including the suppression of wholesale
power market prices by sustained low natural gas prices, as well as the increased penetration of renewableenergy and market designs that do not properly value the firm, carbon-free electricity that nuclear plants
provide to the grid.
Nuclear energy offers value on many fronts to the U.S. energy industry. In the face of the significant
challenge presented by climate change, the existing fleet generates more than half of the carbon-freeelectricity in the U.S., and has avoided over 16 billion metric tons of carbon emissions since 1995.⁹ The
industry-wide capacity factor is 93 percent, meaning nuclear plants provide carbon-free electricity that isreliable and complementary to wind, solar and grid storage.10 This ability to complement variable sourcesof generation will become increasingly valuable as the grid transitions to low carbon technologies including
wind and solar.
The nuclear industry as a whole provides significant economic benefits, adding $60 billion to the
U.S. gross domestic product and paying $2.2 billion in state and local taxes. Nuclear plants are thehighest-paying energy generation source by far, and the nuclear energy sector as a whole provides
nearly 100,000 high-quality, long-term jobs across the country at more than twice the national median
wage.11,12 Additionally, maintaining U.S. presence on the global stage is a national security imperative forinternational nuclear safety and nonproliferation.
In order to retain the resilient, emissions-free electricity, nuclear power plants must be properly valuedby the markets they operate within. Representatives at both the state and federal level are recognizing
the full value of nuclear energy to their constituents and to the nation as a whole. New York, Illinois, New
Jersey and Connecticut have enacted policies that will compensate nuclear plants for their environmental
attributes, preserving more than 10,000 direct jobs. And as of this writing, federal policymakers are
considering inclusion of a tax credit for existing nuclear reactors in climate-focused legislation, in
recognition of the importance of zero-carbon nuclear generation.

9NEI: Annual Greenhouse Gas Emissions Avoided by the U.S. Nuclear Power Plants. May 2021.
https://www.nei.org/resources/statistics/emissions-avoided-by-us-nuclear-industry

10NEI: U.S. Nuclear Generating Statistics. May 2021.

https://www.nei.org/resources/statistics/us-nuclear-generating-statistics

11The Brattle Group: The Nuclear Industry’s Contribution to the U.S. Economy. July 2015.

https://www.brattle.com/news-and-knowledge/news/report-by-brattle-economists-assesses-economic-and-carbon-value-of-nuclear-plants

12U.S. Energy & Employment Report. April 2021.

https://www.energy.gov/us-energy-employment-jobs-report-useer© 2021 Nuclear Energy Institute Inc. | November 2021

Nuclear Costs in Context

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Nuclear Costs in Context
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