RC124 MayJun 2026 - Magazine - Page 12
NUCLEAR ENERGY
BUILDING NUCLEAR
Business models and risk management
for nuclear power plants
by Darcy Holderness
EVELOPING A NUCLEAR POWER PROGRAM and constructing a nuclear
power plant are among the most complex undertakings in
the energy sector. These initiatives involve not only technical challenges and regulatory scrutiny but also signi昀椀cant
昀椀nancial and operational challenges. Further, nuclear power
attracts signi昀椀cant public attention, which means both political issues and engineering considerations must be managed in the
public eye. Many jurisdictions around the world that do not currently use nuclear power are either considering or already developing
nuclear programs, given the long-term sustainability and economic
opportunities it o昀昀ers. These green昀椀eld jurisdictions present unique
risks and challenges to the nuclear industry.
With capital costs often exceeding tens of billions of dollars and
construction timelines spanning more than a decade, construction
planning and risk management become critical to nuclear program
success. The economics of energy produced by a nuclear power
plant are highly dependent on how e昀昀ectively the construction
process is executed. Outcomes can depend on selecting the right
business model and implementing coordinated engagement strategies throughout the plant’s life cycle that build trust within the
local community.
Once commercial operation is achieved, nuclear power plants
are typically low-risk, exceptionally reliable assets. This is attributable to highly skilled operators, operational management systems,
and regulatory oversight. While overall risk remains low, there is
a moderate risk of increased operational costs associated with regulatory shifts informed by global lessons learned or evolving best
practices throughout the plant’s life. Nuclear power plants have
high 昀椀xed operating costs and low variable costs, so their operational costs do not change signi昀椀cantly with reactor output. If they
are not operated at, or near, maximum capacity, the cost of energy
can become prohibitive.
Investment in research and development (R&D) programs speci昀椀c to the nuclear reactor technology being managed can have a
signi昀椀cant impact on operations. This means early consideration of
operational business planning is important as well.
D
Darcy Holderness
is a Director with HKA,
based in Calgary.
12—RENEW CANADA – MAY/JUNE 2026
In 2025 it was announced that OPG will begin
refurbishing the Pickering Generating Station’s
Units 5 to 8, securing 2,100 megawatts of
electricity for another 30-plus years.
RENEWCANADA.NET
