Projecting the costs of generating electricity by nuclear power is a complex challenge. It is particularly difficult owing to the fact that the cost of nuclear power depends greatly on construction costs, which may in turn be dependent on many other local or regional factors, as well as the nuclear management of the organization responsible. In this study of nuclear power economics, the author will attempt to guide the reader through the complexities of the economics of nuclear power, so that one may better understand how to best handle the intricate financing, construction and operational issues of a nuclear power plant to achieve the lowest possible electrical costs. From the outset it must be realized that nuclear power is a high-fixed-cost, low-operating-cost power source. It is an accepted fact that the operating costs of a nuclear power plant are the lowest of any baseline generating power source. Therefore, this study will deal in detail with methods of reducing those high fixed costs.

There are already many available studies on nuclear fuel costs. The Massachusetts Institute of Technology (MIT) has turned out three studies in the last ten years, all dealing with the changing environment for nuclear power fuel cycle economics. As nuclear power is still a relatively new power source, this study will deal with the evolving economics of nuclear energy.