Cost of Electricity from the Jaitapur Nuclear Power Plant

19 Pages Posted: 10 Feb 2013

See all articles by Suvrat Raju

Suvrat Raju

Coalition for Nuclear Disarmament and Peace

M. V. Ramana

Coalition for Nuclear Disarmament and Peace

Date Written: February 3, 2013

Abstract

The Indian Government has announced that it plans to purchase six European Pressurized Reactors (EPRs) for Jaitapur from the French company, Areva. No EPR is in commercial operation anywhere else in the world. Estimates of costs from plants under construction in Finland and France suggest that each unit may cost as much as Rs. 60,000 crores; at this price, six units will cost Rs. 3.6 lakh crores. We show that the expected starting tariff from these reactors, without including transmission and distribution costs, is likely to be around Rs. 14 per unit (kWh) of electricity. We point out that existing revenue model used by the Government already involves a large loss for the taxpayer. The Government may seek to make the tariff from Jaitapur competitive by increasing the scope and nature of these handouts.

Keywords: Jaitapur, Economics of Nuclear Energy, Areva, EPR

JEL Classification: H54, L94

Suggested Citation

Raju, Suvrat and Ramana, M. V., Cost of Electricity from the Jaitapur Nuclear Power Plant (February 3, 2013). Available at SSRN: https://ssrn.com/abstract=2214293 or http://dx.doi.org/10.2139/ssrn.2214293

Suvrat Raju (Contact Author)

Coalition for Nuclear Disarmament and Peace ( email )

India

M. V. Ramana

Coalition for Nuclear Disarmament and Peace ( email )

India

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