Economics of nuclear electricity and inter-fuel competition

The costs of generating base-load electricity are compared on a unified costing basis assuming the plants' size for the different fuel alternatives—nuclear, coal, gas, biomass and peat—to vary according to the infrastructure requirements. Fuel costs are assumed to reflect the market values in Europe to as realistic an extent as possible. Recognizing that there may be a substantial local or regional differences, it is concluded that nuclear electricity generally enjoys a narrow competitive edge, which can become more significant if fossil fuel prices escalate or if energy and carbon taxes are introduced.