RC124 MayJun 2026 - Magazine - Page 13
The balance, in terms of involvement and risk sharing,
between governments representing taxpayers, energy
ratepayers, and private entities should be aligned within
the business model and re昀氀ected in appropriate commercial agreements. This article explores key project decisions, business model options, construction risk management, and operational risk considerations, including how
these risks a昀昀ect relationships among owners, operators,
and the public.
Business models for nuclear projects
The business model chosen for a nuclear power plant
determines how ownership, 昀椀nancing, and operational
responsibilities are structured and in昀氀uences how risks
are allocated among various stakeholders. The feasibility
of a new-build nuclear power plant depends on the type
OPG
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.
RENEWCANADA.NET
of energy market it is being considered for and on whether commercial terms can be developed to manage key
risks associated with construction and operations.
To ensure the cost of electricity is a昀昀ordable for customers while maintaining an appropriate rate of return
on investments, the capital for a nuclear power plant will
often be debt-昀椀nanced and paid down over an extended
period—20 to 30 years or more is common.
Nuclear regulators typically need to understand the
business model to ensure clarity about who will manage
the radiation hazards and nuclear liabilities associated
with design, construction, and operation, including ensuring the resources and authorities exist to maintain the
assets in a safe and secure manner. Regulators will often
also consider technical feasibility and 昀椀nancial guarantees for the decommissioning phase, including long-term
management and permanent disposal of used nuclear
fuel and other radioactive waste produced throughout
the life cycle. The business model must demonstrate that
nuclear safety and security will be paramount throughout
the nuclear power plant’s build, operation, and decommissioning. It must also show that funds are in place for
decommissioning and nuclear waste disposal at the end
of life.
MAY/JUNE 2026 – RENEW CANADA 13
