Risk and Cost Analysis of Utilizing FLEX Equipment for O&M Cost Reduction in Nuclear Power Plants
Several Nuclear Power Plant (NPP) operators in USA have announced to close their plants despite there are remaining years on their operating licenses. The cause of these closures is because the plant operators suffer financial losses. Approximately 80% of USA NPPs would have undergone financial losses if they were situated in a deregulated electricity market. In a deregulated market, electricity generators are independent entities separate from the transmission companies and Independent System Operator (ISO) which manages the market. NPPs in this market are termed merchant NPPs, and their profitability is determined solely from electricity generation revenues. Meanwhile, regulated and public power nuclear units’ profitability is determined by the regulatory process in place for each unit. Due to the complexity of differentiating each regulated and public power NPP’s regulations 36 NPPs are at an immediate risk of retiring early to stop losses, while 27 units will likely to follow in the long run. Today, cost is well-recognized and important factor in NPP decision-making that cannot be ignored. Therefore, it is essential to consider risk and cost together in decision-making to strengthen the position of the nuclear industry in an economically challenging energy market. With operational and maintenance (O&M) cost at 70% of the total operating expenditure of an NPP and some plants closing prematurely despite excellent safety record, there is an urgent need to address the high O&M cost. One of the novel entities that provide additional safety resulting in reduced risk of nuclear power plants is Flex equipment. Flex strategies were postulated by the US NRC in the wake of Fukushima Dai-chi accident to address beyond design-basis accidents and improve plant flexibility. Flex strategy comprise both onsite and off-site component storage for the provision of additional materials and equipment. This work explored innovative ways of utilizing the onsite Flex equipment during regular plant operation, for purposes in addition to the intended use of beyond design basis accidents. This report describes the risk and cost analysis of using Flex equipment during regular or unplanned maintenance.