Locatelli, G, Mancini, M, Ruiz, F et al. (1 more author) (2012) Using real options to evaluate the flexibility in the deployment of SMR. In: Proceedings of the 2012 International Congress on Advances in Nuclear Power Plants. ICAPP '12, 24-28 Jun 2012, Chicago, IL, USA. Curran Associates Inc. , pp. 2773-2782. ISBN 9781622762101
Abstract
According to recent estimations the financial gap between Large Reactors (LR) and Small Medium Reactors (SMRs) seems not as huge as the economy of scale would suggest, so the SMRs are going to be important players of the worldwide nuclear renaissance. POLIMIs INCAS model has been developed to compare the investment in SMR with respect to LR. It provides the value of IRR (Internal Rate of Return), NPV (Net Present Value), LUEC (Levelized Unitary Electricity Cost), up-front investment, etc. The aim of this research is to integrate the actual INCAS model, based on discounted cash flows, with the real option theory to measure flexibility of the investor to expand, defer or abandon a nuclear project, under future uncertainties. The work compares the investment in a large nuclear power plant with a series of smaller, modular nuclear power plants on the same site. As a consequence it compares the benefits of the large power plant, coming from the economy of scale, to the benefit of the modular project (flexibility) concluding that managerial flexibility can be measured and used by an investor to face the investment risks.
Metadata
Item Type: | Proceedings Paper |
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Authors/Creators: |
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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: | 25 Aug 2016 13:42 |
Last Modified: | 04 Nov 2016 07:33 |
Status: | Published |
Publisher: | Curran Associates Inc. |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:97178 |