In order to increase the capacity of harnessing power and efficiently distributing it to households and different structures, man has always seek for ways in order to improve the methods that he is currently using. Electricity is tantamount to better living today. Electrical services from electricians are sought out because this industry requires a specific set of specialized skills.
Today, nuclear power projects are a hot topic when it comes to harnessing energy efficiently. For years now, nuclear projects have not really been accepted into society as the most viable option when it comes to power generation. Nuclear power plants are said to be very complex, has exhaustively long construction periods and requires several equipments and technologies from different suppliers.
With the risks presented above, which is the most common in such endeavor? In a research conducted by Barclays, the delay in constructing nuclear power plant projects is the most common risk to these projects. An example to this is the one year delay for GII projects located in China. This one year delay though is much better when compared to the 5 to 8 years delay encountered in most European nations.
According to Barclays, a delay in construction for just a year increases capex by 10 percent. On a more dangerous note, there is always the risk of accidents in nuclear power plants. Although security in NPPs is tightened with technology sophistication, experts still say that accidents cannot be taken out of the picture.
Another thing to consider is the decommissioning cost when the life of the power plant has fully expired.
In a report published by World Nuclear Industry Status (2014), there are 49 out of the 66 nuclear reactors that are under construction which are way behind their schedules. The report also showed that all of China’s 27 reactors that are under construction are all in delay.
Barclays believe that for China, the project delay risks for the Gen III reactors such as Sanmen and Haiyang are higher. Gen III reactors that are in construction has a capacity up to 10.7GW. Experts estimate that the Gen III projects in China will be delayed by 30 months.