 Too costly to matter: Economics of nuclear power for Saudi ArabiaAli Ahmad and M.V. Ramana Energy, 2014, vol. 69, issue C, 682-694 Abstract: Saudi Arabia has ambitious plans for nuclear power. Given this context, this paper examines the economics of nuclear power and compares it to two other sources of electricity, natural gas and solar energy. It calculates the costs of electricity generation, water desalination and the opportunity cost associated with forgone oil and gas revenues. A sensitivity analysis is included to account for variations in important parameters within the comparative cost analysis. Our results suggest that for a large range of parameters, the economics of nuclear power are not favorable in comparison with natural gas, even if the currently low domestic natural gas prices in Saudi Arabia were to rise substantially. Further, electricity from solar plants has the potential to be cheaper than nuclear power within the next decade if the rapid decline in solar energy costs in the last decade continue, i.e., before the first planned nuclear power plant would be completed. However, unless the price of oil drops substantially below current values, it would be more economically optimal to export the oil than using it for generating electricity. Keywords: Nuclear power; Saudi Arabia; Natural gas; Economics; Solar power; Electricity demand (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:69:y:2014:i:c:p:682-694 DOI: 10.1016/j.energy.2014.03.064 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.