The multiple-criteria decision analysis of the financial and business models for the construction of new nuclear unit in the Czech Republic

Abstract

When discussing their future energy mix, many countries are reconsidering the position of the nuclear energy. One of the main arguments against new nuclear plants is the extremely high investment cost. Nevertheless, some countries still perceive nuclear energy as a strategic sector and are willing to invest in it, using different financial strategies. The Czech Republic has initiated the decision-making process for building and financing a new nuclear unit. This article introduces readers to the general issues of nuclear financing in a liberalised European market and, using multiple-criteria decision analysis, identifies the most suitable model for financing the construction of the new unit in the Czech Republic. The three models under consideration are introduced using the examples of three European nuclear power plant projects: Hinkley Point C, Hanhikivi and Paks II. The article compares the three new nuclear power plant projects, each representing a various financial model, with the 2015 National Action Plan for the Development of the Nuclear Energy Sector in the Czech Republic and evaluates them to choose the best model for the new nuclear power plant in the Czech Republic. Thus, it provides a comprehensive overview of the link between theoretical models, their application, and the transferability of the models.