Uncertainty Quantification and Sensitivity Analysis of Nuclear Construction Cost Reduction Pathways

Abstract

High construction costs have plagued recent nuclear projects and they hamper the widespread deployment of nuclear technology. The Nuclear Cost Reduction Tool is a plant economic framework that quantifies the impact that various plant design and construction attributes have on construction costs and cost overruns and shows the positive effects of learning over a series of deployments. However, a downside of the current model is that all model outputs and capabilities are deterministic. To provide a more comprehensive view, this study evaluated the impact of model parameter uncertainty through a sensitivity analysis applied to 18 model parameters. This approach quantified the impact of model uncertainty on the output variables of Net Overnight Capital Cost (Net OCC), Construction Duration (CD), and Levelized Cost of Electricity (LCOE). Monte Carlo analysis revealed uncertainty distributions for these variables, showing that absolute uncertainty decreases over a series of deployments. A local sensitivity analysis showed that even small parameter perturbations (5%) can have a significant impact on project execution, highlighting areas that could reduce costs by billions across an order book of plants. The results of this study have improved the understanding of the model and identified the most impactful model parameters and construction attributes.