Cost Estimating Guidelines for Generation Iv Nuclear Energy Systems

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Cost Estimating Guidelines for Generation Iv Nuclear Energy Systems GIF/EMWG/2007/004 COST ESTIMATING GUIDELINES FOR GENERATION IV NUCLEAR ENERGY SYSTEMS Revision 4.2 September 26, 2007 Prepared by The Economic Modeling Working Group Of the Generation IV International Forum Printed by the OECD Nuclear Energy Agency for the Generation IV International Forum EMWG GUIDELINES 1 DISCLAMER This report was prepared by the Economic Modeling Working Group of the Generation IV International Forum (GIF). Neither GIF nor any of its members, nor any GIF member‟s national government agency or employee thereof, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. References herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by GIF or its members, or any agency of a GIF member‟s national government. The views and opinions of the authors expressed therein do not necessarily state or reflect those of GIF or its members, or any agency of a GIF member‟s national government. EMWG GUIDELINES 2 ECONOMIC MODELING WORKING GROUP (EMWG) MEMBERS William Rasin, Chairman, Consultant, United States Kiyoshi Ono, co-Chairman, Japanese Atomic Energy Authority, Japan Evelyne Bertel, Technical Secretariat, Organisation for Economic Cooperation and Development, Nuclear Energy Agency Pierre Berbey, Electricite de France Romney Duffey, Atomic Energy of Canada, Ltd. Hussein Khalil, Argonne National Laboratory, United States Izumi Kinoshita, Central Research Institute of Electric Power Industry, Japan Sermet Kuran, Atomic Energy of Canada, Ltd. ManKi Lee, Korea Atomic Energy Research Institute, Republic of Korea Eugene Onopko, Consultant, United States Geoffrey Rothwell, Stanford University, United States Kent Williams, Oak Ridge National Laboratory, United States FORMER MEMBERS Kazunori Hirao, co-Chairman, Japanese Atomic Energy Authority, Japan François-Luc Linet, Commissariat à l‟Energie Atomique, France Keith Miller, British Nuclear Fuels, Ltd., United Kingdom Jean-Loup Rouyer, Electricite de France Risto Tarjanne, Lapeenranta University of Technology, Euratom EMWG GUIDELINES 3 EMWG GUIDELINES 4 TABLE OF CONTENTS Abstract ................................................................................................................................................... 9 Executive Summary .............................................................................................................................. 11 References ............................................................................................................................................. 14 1. Introduction ................................................................................................................................ 15 1.1 Purpose of Cost Estimating Guidelines ...................................................................................... 15 1.2 Differences from Previous Guidelines ......................................................................................... 17 1.3 Relationship between the Present Guidelines and the Overall EMWG Modeling Effort ........... 19 1.4 Definition of Cost Estimating Terms .......................................................................................... 19 1.5 The GIF Code Of Account (COA) ............................................................................................. 29 References ............................................................................................................................................. 34 2. Structure of an Integrated Nuclear Energy Economic Model ..................................................... 35 2.1 Flow Diagram for an Integrated Nuclear Energy Economic Model ........................................... 35 2.2 Top-down Versus Bottom-up Cost Estimating ........................................................................... 37 2.3 Integration of Cost Estimating into the Design Process ............................................................. 38 2.4 Figures of Merit of Interest in these Guidelines ......................................................................... 38 References ............................................................................................................................................. 40 3. Estimating Categories for RD&D Costs ..................................................................................... 41 3.1 Rationale for Selection of Categories for Estimation ................................................................. 41 3.2 Comprehensive COA for RD&D Activities ............................................................................... 41 4. General Ground Rules and Assumptions .................................................................................... 45 4.1 Project Execution ........................................................................................................................ 45 4.2 Commercialization Plan .............................................................................................................. 46 4.3 Estimate Components ................................................................................................................. 46 4.4 Project Code of Accounts (COA) ............................................................................................... 47 4.5 Project Scope Definition ............................................................................................................. 47 4.6 Inclusions/Exclusions/Qualifications.......................................................................................... 48 4.7 Project Estimate .......................................................................................................................... 48 4.8 Project Schedule ......................................................................................................................... 51 4.9 Region and Site Definition ......................................................................................................... 54 4.10 FOAK Plant ................................................................................................................................ 54 4.11 NOAK Plant ............................................................................................................................... 55 4.12 Estimate Reporting Format ......................................................................................................... 55 References ............................................................................................................................................. 56 5. Guidance for Cost Estimates Prepared by the Top-down Approach… .. ……………………… 57 5.1 Cost Modeling Needs for Innovative System Designers ............................................................ 57 5.2 Top-down Modeling Principles .................................................................................................. 57 5.3 Use of Top-down Modeling for Generation IV Systems ............................................................ 61 5.4 Top-down Approach for Indirect Capital and Non-Capital Life Cycle Costs. ........................... 63 5.5 Other life cycle cost elements. .................................................................................................... 64 References ............................................................................................................................................. 65 EMWG GUIDELINES 5 6. Guidance for Cost Estimates Prepared By the Bottom-up Approach… ... …………………….. 67 6.1 Cost Categories ........................................................................................................................... 67 6.2 Specific Cost-Estimating Assumptions ...................................................................................... 68 6.3 Construction Costs ...................................................................................................................... 69 6.4 Other Project Costs ..................................................................................................................... 71 6.5 Power Plant Detailed Bottom-up Estimating .............................................................................. 71 6.6 Discipline Notes for Scope/Quantity Development .................................................................... 72 6.7 Other Plants ................................................................................................................................ 74 References ............................................................................................................................................. 75 7. Total Capital at Risk .. …………………………………………………………………………. 77 7.1 Cash Flow ................................................................................................................................... 77 7.2 Interest During Construction (IDC) ............................................................................................ 77 7.3 Contingency ................................................................................................................................ 77 7.4 Total Capital Investment Cost ...................................................................................................
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