Locatelli, G orcid.org/0000-0001-9986-2249, Pecoraro, M, Meroni, G et al. (1 more author) (2017) Appraisal of small modular nuclear reactors with ‘real options’ valuation. Proceedings of the Institution of Civil Engineers - Energy, 170 (2). 1600004. pp. 51-66. ISSN 1751-4223
Abstract
Small modular nuclear reactors have the advantage of flexibility in deployment and shorter construction time compared with large reactors. Investment appraisals in the energy sector are traditionally based on discounted cash flow, but this tends to underestimate the value of management flexibility during the decision-making process. The ‘real options’ valuation method can better support an investment appraisal. This paper, leveraging the real options approach, gives an account of two key strategic aspects to support the decision-making process in building small modular reactors: the time to market with the relative stage-gate process and the effect of a new plant on the existing portfolio. This paper assesses small modular reactors against other base-load power plants and, once applied to the UK scenario, it shows the superior performance of small modular reactors.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | (c) ICE Publishing, all rights reserved. This paper is published in Proceedings of the Institution of Civil Engineers - Energy, published by ICE Publishing and available at: [https://doi.org/10.1680/jener.16.00004]. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Economics & Finance; Energy; Management |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Engineering & Physical Sciences (Leeds) > School of Civil Engineering (Leeds) > Institute for Resilient Infrastructure (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Jan 2017 16:34 |
Last Modified: | 15 Feb 2018 01:38 |
Published Version: | https://doi.org/10.1680/jener.16.00004 |
Status: | Published |
Publisher: | Thomas Telford (ICE Publishing) |
Identification Number: | 10.1680/jener.16.00004 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:110236 |