GIF Economic Modelling Working Group

Cost Estimating Guidelines for Generation IV Nuclear Energy Systems and G4ECONS Model

The EMWG published Cost Estimating Guidelines for Generation IV Nuclear Energy Systems (GIF, 2007) and released the Excel-based software package, G4ECONS v2.0, providing the means to calculate the levelized cost of energy and the total investment cost so as to evaluate Gen IV systems against GIF economic goals. These resources were made available to the public through the GIF Technical Secretariat, resulting in subsequent publications that demonstrate the EMWG methodology for the economic assessments of Gen III and Gen IV systems, as well for co-generation applications, such as hydrogen production.

G4ECONS v2.0 was also benchmarked against economic models developed by the IAEA including the Nuclear Economics Support Tool and the Hydrogen Economic Evaluation Programme. The results were published in peer-reviewed publications. Lessons learnt from the benchmarking exercise and users’ feedback informed the refinement of the G4ECONS tool. The latest version, G4ECONS v3.0, was released in October 2018 with an improved user interface. In 2022, the EMWG launched a survey to collect user feedback on G4ECONS v3.0 and identify potential model improvements. The unique aspects of SMRs, non-electric applications, and embedded sensitivity analysis were identified as areas of greatest interest for future developments. In addition, many users expressed an interest in additional training sessions on the G4ECONS tool. The EMWG will also embark on a multi-year effort to update and refresh the 2007 Cost Estimating Guidelines report and G4ECONS v3.0 model.

In 2016, the EMWG started to investigate challenges and opportunities for the deployment of Gen IV systems in emerging energy markets with an increasing share of renewable energy resources. The EMWG worked collaboratively with the GIF SIAP to investigate challenges and opportunities for the deployment of Gen IV systems in electricity markets with a significant penetration of renewable energy resources and to produce a position paper for the GIF Policy Group. An abridged version of the EMWG position paper on the impact of increasing shares of renewables on the deployment prospects of Gen IV systems was presented at the 4th GIF Symposium (2018) and an executive summary was posted on the GIF website.

The update to the cost estimating guidelines and the development of G4ECONS v4.0 are underway to expand discussion on scale and modularity, aiming to better address SMRs and to further exploring how to best provide cost estimates for direct steam use and co-generation of both heat and electricity. 

Nuclear Energy: An ESG investable Asset Class:

In 2021, the EMWG worked with the finance industry to produce a report, Nuclear Energy: An ESG Investable Asset Class. The report considered the nuclear industry’s ability to report against a broad range of environmental, social and governance (ESG) data collection and accounting metrics. The report was required to help the finance industry to start to consider nuclear as an investable asset class. Each project can then be considered on its own merits. For a nuclear project to access finance (particularly climate finance), the project itself will need to be able to report well against a broad range of ESG considerations / criteria. Enabling nuclear to be considered as an ESG-investable asset class is the first step to enabling the flow of finance. The report will be maintained and updated regularly to enable it to be used by the finance industry as a reference guide.

The report can be viewed as a blueprint on how to set up a project and enable it to access finance. It received significant press coverage (e.g., from Standard & Poor’s, Reuters, World Nuclear News) and was successfully presented in a dedicated workshop at the 2021 World Nuclear Exhibition.

Advanced Nuclear Technology Cost Reduction Strategies and Systematic Economic Review:

Also in 2021, the Advanced Nuclear Technology Cost Reduction Strategies and Systematic Economic Review (ANTSER) process was developed to provide a framework for evaluating nuclear cost reduction strategies. This initial report provided an example strategy on “functional confinement”. In 2022 and in 2023 respectively, the second ANTSER for “modularity at scale, and the third strategy is for “technology-inclusive cost reduction” were developed.

This report provides a process to produce a methodological framework for evaluating nuclear cost reduction strategies. Key areas for nuclear cost reduction strategies and technologies are categorized under design, construction/production, and project management. Application of the framework is illustrated on reactor designs that are based on cost reduction through “functional confinement”, followed by a presentation of a more rigorous application of the methodology.

The report was written with three goals in mind: first, to create a methodology for creating useful cost reduction strategies that cut across a broad set of advanced nuclear reactor technologies; second, to generate an example cost reduction strategy using the methodology; and third, to provide a path to improve the methodology and produce additional cost reduction strategies. The EMWG can lead to future cost reduction strategy studies, but the range and impact of this body of work is greatly enhanced by direct contributions from the GIF methodology working groups, task forces, and system steering committees for the six Gen IV reactors, as well as SIAP.

Table - Assessment of Potential Modular Approaches
from 2022 GIF EMWG Report: Advanced nuclear technology cost reduction strategies and systematic economic review cost reduction strategy #2: design - modularity at scale

GIF EMWG FAQ

The GIF EMWG has gathered a set of frequently asked questions and proposed answers to these questions. You can find this FAQ by following the link below.