Up to 25% cheaper electricity in Greece with nuclear energy

What are the conclusions of the Aristotle University of Thessaloniki study on the installation of small nuclear reactors?

Depending on the simulation scenarios, the reduction in electricity costs in Greece due to the use of small nuclear reactors (SMR) would be between 3.3% and 25%. Accordingly, the cost impact for consumers would be between €3 and €25 per megawatt hour.

This is proven by the first cost-benefit study of the Aristotle University of Thessaloniki, which Mr. Pandelis Biskas presented on Thursday at a conference of the Energy Institute of Southeast Europe.

The AUTH professor emphasised that SMRs have a significant impact on a market like Greece as they reduce gas consumption, carbon dioxide emissions, and the price for the final consumer.

However, he emphasised that the benefits only exist if the country is limited to installing 600 to 700 MW and not if the market is cannibalised because the projects will not be sustainable.

The presented cost-benefit study simulates the effects of using corresponding units in the Greek electricity market for 20 years, from 2032 to 2051.

The pros and cons of SMRs

SMRs are estimated to have a variable operating cost of 15 to 30 euros per megawatt hour, which is very low.

Biskas presented their advantages and disadvantages at the conference, opening (albeit timidly) a great debate about the necessity of nuclear power in Greece, in which both the Prime Minister and his advisor, Nikos Tsafos, have placed themselves.

As the professor mentioned, in addition to small variable operating costs, small nuclear reactors have small requirements for adding fuel as they enter the SMRs and have a duration of seven years, in contrast to large nuclear plants, where fuel renewal takes place from one to two years.

They also have greater security components and require less human intervention as there is a high degree of automation. As Biskas said, this creates a smaller risk so that something bad does not happen in terms of security.

In addition, they are smaller in size as they are prefabricated units, which are built where their construction site is and installed in the specific area of ​​the station.

According to Biskas, their disadvantages are the high capital costs, the risks of nuclear energy and the great problem of waste management, while there are also some regulatory challenges.

Based on the study, the capex is also very large, estimated to be between 1.9 and 3.9 billion, corresponding to 5.5 to 11.5 euros per kilowatt.

In addition, it is estimated that such a unit will have annual operation and maintenance costs of 126,000 euros per megawatt. If the investment is done wisely and there is not much competition, then the IRR can be set at 12.7% and decrease to 5% as the power grows.

Saving

The study states that nuclear plants significantly reduce dependence and costs on natural gas, which has positive implications for energy independence.

The figures show that the cost of importing natural gas falls from 21% to 62% depending on the scenario, with a cost reduction from 222 million euros per year to 657 million euros and additional cost savings in carbon dioxide emissions from 134 million to 344 million per year.

This means that the total savings in gas and pollution would be from 356 million euros to 1 billion euros annually.

Marianna Tzanne is a columnist for New Money. Translated by Paul Antonopoulos. 

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