Modern financial models of nuclear power plants

The last few years have seen some significant changes in the financing of large infrastructure projects, including nuclear power plants. Financial models must take into account factors such as high capital investment, long construction periods, long capital payback periods, problems associated with the fuel cycle, including security of supply, exchange and storage of fuel, non-proliferation. Traditionally, the only entities facing the difficulties and risks mentioned above were large, vertically integrated, state-owned or regulated, sovereign-backed utilities. Also, only they have been able and willing to undertake the financing of investments. The change consists in a greater interest in global capital markets in order to diversify sources of financing and to spread both the costs and the risks among numerous groups of investors. The evolution of the financial models of nuclear power plants in the world takes place based on the following trend: government financing, corporate financing, hybrid financing, project finance. This transformation is moving towards a greater involvement of private capital instead of a reduction of the share in public funds. The article is a detailed discussion of a few modern financial models: Government-to-Government Financing, Loan Guarantees, Host Government-Backed Power Purchase Agreement (PPA), Vendor Financing, and Investor Financing.