Content displaying: CAPEX Definition

Nuclear

CAPEX Definition

Capital expenditures (CAPEX) are expenditures required to achieve commercial operation in a given year.

Overnight capital costs are modified from AEO2019 (EIA, 2019a). The EIA projections were adjusted by removing the material price index. The material price index accounts for projected changes in the price index for metals and metals products, and it is independent of the learning-based cost reductions applied in the EIA projections.

Overnight Capital Cost ($/kW) Construction Financing Factor (ConFinFactor) CAPEX ($/kW)
Nuclear: Advanced nuclear power generation $6,200 1.087 $6,742

CAPEX can be determined for a plant in a specific geographic location as follows:

CAPEX = ConFinFactor × (OCC × CapRegMult + GCC)
See the Financial Definitions tab in the ATB data spreadsheet.

Regional cost variations and geographically specific grid connection costs are not included in the ATB (CapRegMult = 1; GCC = 0). In the ATB, the input value is overnight capital cost (OCC) and details to calculate interest during construction (ConFinFactor).

In the ATB, CAPEX represents each type of nuclear plant with a unique value. Regional cost effects associated with labor rates, material costs, and other regional effects as defined by (EIA, 2016) expand the range of CAPEX (Plant × Region). Unique land-based spur line costs based on distance and transmission line costs are not estimated. The following figure illustrates the ATB representative plant relative to the range of CAPEX including regional costs across the contiguous United States. The ATB representative plants are associated with a regional multiplier of 1.0.

/electricity/2019/images/nuclear/chart-nuclear-capex-definition-RD-2019.png
R&D Only Financial Assumptions (constant background rates, no tax changes)

References

References are specific to this page, see all references page for all references.

EIA. (2016b). Capital Cost Estimates for Utility Scale Electricity Generating Plants. Retrieved from U.S. Energy Information Administration website: https://www.eia.gov/analysis/studies/powerplants/capitalcost/pdf/capcost_assumption.pdf

EIA. (2019a). Annual Energy Outlook 2019 with Projections to 2050. Retrieved from U.S. Energy Information Administration website: https://www.eia.gov/outlooks/aeo/pdf/AEO2019.pdf