Cost Estimates for NPP Decommissioning Projects and Insights from Cost Analysis - 18118
The technical ability to decommission NPPs shut down after normal operation has been well demonstrated. However, concerns remain about the ability to accurately calculate and demonstrate the validity of decommissioning cost estimates, and to control costs during decommissioning. This paper describes recent international guidance on quality cost estimates for nuclear decommissioning projects and explores the potential added value that could be attained through more systematic analysis and reporting of decommissioning project costs. The OECD Nuclear Energy Agency (NEA) and the International Atomic Energy Agency (IAEA) have long been concerned about the need to promote greater transparency in decommissioning costing and have collaborated in a number of initiatives in pursuit of this objective. Together with the European Commission, they published 'The International Structure for Decommissioning Costing (ISDC)' in 2012. The ISDC provides a useful common reporting format for decommissioning costing. The NEA has also published guidance on the international peer reviews of decommissioning cost studies (2014) and on the practice of decommissioning cost estimation (2015). In September 2017, the NEA and IAEA published detailed guidance on addressing uncertainties in decommissioning cost estimates (the 'Addressing Uncertainties' report). This joint report sets out an approach to treating uncertainties reflecting current good practices in cost estimating. Specifically, it describes how uncertainties in decommissioning cost estimation can be addressed using standardized methods of estimating uncertainty and risk analysis. Its recommendations aim at enabling a consistent and comprehensive treatment of risk and uncertainty in the preparation of decommissioning cost estimates. Together these publications establish a good basis for producing comprehensive and high-quality cost estimates for nuclear decommissioning projects and for enhancing confidence in the estimates through improving transparency concerning the underpinning data and calculations, and more explicit representation of the uncertainties that may impact on project costs. There is increasing attention on understanding variations between cost estimates and apparent escalation of decommissioning costs. This arises both from the need to assure the adequacy of financing arrangements for future decommissioning projects and the ambition to improve the performance and ensure value-for-money in the delivery of decommissioning projects and services. A systematic analysis of actual decommissioning project costs in relation to the cost estimates would be expected to yield valuable insights about key cost drivers in actual decommissioning projects, and the extent to which current cost estimates accurately capture and reflect these. Aligning the reporting of decommissioning project costs with the underpinning cost estimates for the projects would also facilitate the identification of causes of major deviations between projected and actual costs. (authors)