8**S-GE-20140003
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 8**S-GE-20140003
Economic Assessment of
Nuclear Power Plant Production
using INPRO Methodology
IAEA INPRO 8th Dialogue Forum
August 26, 2014
Sumio FUJII Acting General Manager, Nuclear Systems Engineering Department, MHI
Ex-General Manager, corporate Nuclear Power Department, Hokkaido EPCO
(Note)
The presentation contains author’s personal views and estimations, which don’t
necessarily represent MHI’ official position.
8**S-GE-20140003
Contents
• User Requirements of INPRO and Model used in Assessment
• Model Case to Estimate the Production Cost
• Estimation of the Production Cost
• Sensitivities of Parameters Influencing the Production Cost
• Production Costs other than Model Case
• Conclusion
• Appendix 1. Items of construction cost
2. Progress of construction project
3. Variety of depreciation rules
4. Nuclear fuel cost in the market price
5. Prime rates and inflation rates
6. Load factor
7. Plant personnel needed
8. Administration and other operation expenditures
9. Annual earning, profit tax and balance sheet
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8**S-GE-20140003
User Requirements of INPRO
and Model used in Assessment
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INPRO User Requirements for SA of NES – Economics (1)
Economic basic principle BP: Energy and related products and
services from nuclear energy systems shall be affordable and available.
UR1 (Cost of energy): The cost of energy supplied by nuclear energy systems,
taking all relevant costs and credits into account, CN, should be competitive with
that of alternative energy sources, CA, that are available for a given application in
the same time frame and geographic region/jurisdiction.
• CR1.1 cost competitiveness
IN1.1: Cost of energy
AL1.1: CN < k * CA
(CN = cost of nuclear energy, and CA = cost of energy from alternative source;
factor k is usually > 1 and is based on strategic considerations.)
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INPRO User Requirements for SA of NES – Economics (2)
UR2(Ability to finance): The total investment required to design, construct, and
commission nuclear energy systems, including interest during construction,
should be such that the necessary investment funds can be raised.
• CR2.1 attractiveness of investment
IN2.1: Financial figures of merit.
AL2.1: Figures of merit for investing in a NES are comparable with or better than
those for competing energy technologies.
• CR2.2 investment limit
IN2.2: Total investment
AL2.2: The total investment required should be compatible with the ability to
raise capital in a given market climate.
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INPRO User Requirements for SA of NES – Economics (3)
UR3 (Investment risk): The risk of investment in nuclear energy systems should
be acceptable to investors.
• CR3.1 maturity of design
IN3.1: technical and regulatory status.
AL3.1: Technical development and status of licensing of a design to be installed
or developed are sufficiently mature
• CR3.2 construction schedule
IN3.2: Project construction and commissioning times used in economic
evaluation.
AL3.2: Times for construction and commissioning used in economic evaluation
are sufficiently accurate, i.e. realistic and not optimistic
• CR3.3 uncertainty of economic input parameters
IN3.3: A sensitivity analysis of important input parameters for calculating costs
and financial figures of merit has been performed.
AL3.3: Sensitivity to changes in selected parameters is acceptable to investor.
• CR3.4 political environment
IN3.4: Long term commitment to nuclear option.
AL3.4: Commitment sufficient to enable a return on investment.
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INPRO User Requirements for SA of NES – Economics (4)
UR4 (Flexibility): Innovative nuclear energy systems should be compatible with
meeting the requirements of different markets.
• CR4.1 flexibility
IN4.1: Are the innovative NES components adaptable to different markets?
AL4.1: Yes.
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Model used in Assessment
• The objective of economics area of the INPRO methodology is to evaluate the
production cost of sustainable nuclear energy system in comparison with other
energy systems for the future.
• However, it is difficult to estimate the production cost of future system, for there is
no opened estimation of precise construction cost due to two reasons; vendors
don’t calculate it or it’s confidential even if calculated.
• On the other hand, there are many electric utilities run as private business
entities. Thus their accounts are opened to stockholders and investors in the form
of financial statements, which enable us to estimate construction costs of existing
nuclear energy systems.
• In this report production costs of Mitsubishi’ Gen-III 2660 MWt PWR power plant
equipped with fully digitalized control & safety protection system were studied by
referring electric power company’s financial reports together with some
estimations.
• The Model Case in this study is applicable to private entities because the
settlement method of bank loan interests, profit taxes and stock dividends in the
account considerably influences the cash flow and production cost. Hence, state-
owned utilities and some others are discussed separately.
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8**S-GE-20140003
Model Case
to Estimate the Production Cost
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Basic principles of economical assessment
The power production business using nuclear
power plants has a risk. Therefore, the economical
assessment of new power plant construction shall
be conservatively made based on actual previous
results together with pessimistic assumptions.
8**S-GE-20140003
Basic assumptions
• Two units of Gen-III 2660 MWt PWR power plant will be built in a site.
They will enter the power production in the year 201X and 201X+2
respectively.
• The construction project starts in the year 201X-10.
Now we are 10 years before the start of operation.
• The construction work is done under turn-key construction contract.
• The earth works & civil works start in the year 201X-8.
• The first unit enters into the operation in the year 201X.
• The second unit enters into the operation in the year 201X+2.
• Both units are operated with plant efficiency by 35 %. This leads to the
gross electric output of 931 MWe.
• The design life time of PWR is 60 years, however the duration of
operation is assumed to be 30 years for assessment of economics.
• In the year 201X+29 the first unit is shutdown for decommissioning.
• In the year 201X+31 the second unit is shutdown for decommissioning.
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Assumptions concerning business entity (1)
A new whole sale company is established as a subsidiary of electric utility.
Construction phase
• The capital which is assumed around 20 percent of the maximum overnight cost is
shouldered by the mother electric utility (risk taker). Half of the capital is paid in for
the company establishment, and the rest half is paid at the moment of initial
concrete pouring for the first unit reactor building.
• The company borrows the amount of cash in shortage for the construction
payment with the prime interest rate from banks (risk avoiders). The bank loan
interest is added to the overnight cost. This leads to the swelling of constructed
plant assets.
Operation phase
• The company borrows the amount of cash in short after the start of nuclear power
plant operation, if necessary. It’s certain that the company will go into the
excessive debt in the balance sheet soon after the start of plant operation.
However, it’s assumed that no bankruptcy occurs and the company can borrow the
amount from the bank in any occasions.
• Null stock dividend is assumed for 30 years by taking into account that the
company is a subsidiary of electric utility, which can obtain profits through the retail
sale of electricity. © 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 10
8**S-GE-20140003
Assumptions concerning business entity (2)
After 30-years operation
• The amount of reserve for spent fuel disposal (back end) has to be sufficient for
the total of spent fuel assemblies stored and that is to be saved in cash in the
balance sheet by the year 201X+31.
• The reserve for decommissioning which is 600 million US$ per unit, is to be saved
in cash in the balance sheet by the year 201X+31.
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8**S-GE-20140003
Assumptions concerning construction (1)
Price of construction :
Costs specific to the site are not included such as;
Purchase of the land, charge for environmental condition survey service,
charge for feasibility study service, preparation/construction costs of
infrastructures outside the site land, and donations to local communities &
associations.
Population of stationed personnel working for the company :
30 to 300 increasing year by year during the construction of Unit 1.
They would be engaged in quality assurance program, commissioning
and preparation of operation.
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(million US$) Unit 1 Unit 2
Machinery and equipment including installation charges 2300 2200
Civil works 400 200
Building constructions 350 300
Operation/administration facilities 200
Spent fuel storage facility 180
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Assumptions concerning construction (2)
• Payment schedule : It was assumed that payments to vendors would be
made based on construction progress;
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Year 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+9 Start of civil works First concrete of Startup test ▼ ▼ of Unit 1 ▼ of Unit 2 ▼ of Unit 1 ▼ of Unit 2Machinery and equipment 0.10 0.00 0.00 0.30 0.20 0.20 0.20
Unit 1 Civil works 0.20 0.15 0.15 0.15 0.15 0.10 0.10Building constructions 0.00 0.00 0.00 0.20 0.40 0.30 0.10Machinery and equipment 0.00 0.00 0.00 0.00 0.30 0.20 0.20 0.20 0.10
Unit 2 Civil works 0.00 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.10Building constructions 0.00 0.00 0.00 0.10 0.20 0.30 0.20 0.10 0.10
Common Spent fuel storage construction 1.00Operation/administration facilities 0.00 0.00 0.25 0.25 0.25 0.25 0.00
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Assumptions concerning operation (1)
• Load factor : 90 % (55 % in the year for commissioning)
• In-house electric power consumption : 45 (MWe/unit)
• Population of plant personnel stationed: 700 persons for twin units
• Nuclear fuel cost : 70 (million US$/2660MWtEFPY) for front end.
3.5 (USD/MWh) for back end by assuming moratorium
for spent fuel disposal policy.
Procurements of refined uranium ore for every operation cycle were
supposed to be done in 3-years advance of loading.
No escalation was considered for the nuclear fuel cycle cost.
• Cost for preventive maintenance and repairs:
• Administration and other operation expenditures excluding labor cost:
21 (million US$) for single unit, 32 (million US$) for twin units
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Preventive maintenance and repair Ratio to the initial value of
fixed property (%/year)
Machinery and equipment 2.0
Civil works 1.0
Buildings 1.0
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8**S-GE-20140003
Assumptions concerning economic & accounting conditions
Common to construction phase and operation phase
• Prime rate of bank loan : 2.0 (%/year)
• Escalation rate : 1.0 (%/year)
Escalation is not applied to the construction price, nuclear fuel price,
reserve for spent fuel and reserve for decommissioning. Other
parameters including the electricity price is escalated by this rate.
• Discount rate for net present value (NPV) calculation : 2.5 (%/year)
Usually the discount rate for NPV should be assumed higher than the
bank loan rate by considering the risk of project and inflation.
• Labor cost : 120,000 (US$/person/year) for employees
During the operation
• Property tax for fixed assets : 1.5 (%/year) of the land and plant assets
• Depreciation of properties :
The total cost for machinery & equipment is depreciated by fixed value
(6.25%/year) in 16 years.
The total cost for civil works & buildings is depreciated by fixed value
(3.33%/year) in 30 year.
• Profit tax rate for annual profit : 30 (%)
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8**S-GE-20140003
Estimation
of the Production Cost
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8**S-GE-20140003
Account of the model case
Definition in this study :
• The production cost is defined as the whole sale price by which the cash in the
balance sheet becomes equal to the total of the reserves for spent fuel
disposal & decommissioning and the capital after 30 years operation.
Account of Model Case
Whole sale price and account of model case
• In case where the whole sale price is assumed 5.17 cent/kWh in the year
201X, at the moment of operation start of the second unit, that is the year
201X+2, the balance sheet of the production company is;
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Assets (Million US$) Liabilities (Million US$)
Cash 59 Bank loan 5200
Nuclear fuel in storages and reactors 462 Reserve for spent fuel 83
Machinery 4174 Reserve for decommissioning 80
Civil & buildings 1236 (Total) (163)
Land ? Capital (stock) 1,400
Retained Earnings - 832
Total 5,931 Total 5,931
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8**S-GE-20140003
Production cost of the model case
• The whole sale price of 5.17 cent/kWh in the year 201X and 7.08 cent/kWh in the
year 201X+31 (the average in the life is 6.097 cent/kWh) results in the balance
sheet of the year 201X+31;
• The cash 4356 million US$ will be used for spent fuel disposal, decommissioning,
disposal of nuclear fuel in the reactor and stock dividends.
• Thus the stock holders can receive the amount of face values of their investments
(1400 million US$) in cash, but its net present value (NPV) is only 606 million US$
by the discount rate of 2.5 %/year. This situation is acceptable to the mother
electric utility because she can earn profits through retail sales of electricity.
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Assets (Million US$) Liabilities (Million US$)
Cash 4,356 Bank loan 0
Nuclear fuel in rectors 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,723)
Land ? Capital (stock) 1,400
Retained Earnings 443
Total 4,566 Total 4,566
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Production cost in each year
Production cost in the life
Whole sale price in the life
Whole sale price in each year
Trend of production cost of the model case
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(cent/kWh)
5.66 cent/kWh
Year after the first unit start
Loss
Profit
End of depreciation of
machinery & equiment
6.097 cent/kWh
Shutdown of
the first unit
6.10 cent/kWh 5.17 cent/kWh
11.74 cent/kWh
7.08 cent/kWh
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Miscellaneous expendituresLabor CostNuclear fuel consumptionMaintenanceInterest of bank loanDepreciationReserve for decommissioningReserve for spent fuel disposal
Factors in production cost of the model case
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Year after the first unit start
(cent/kWh)
Trend of whole sale price
5%7%
26%
5%
15%
17%
15%
10%
Percentages
in the life
8**S-GE-20140003
-6000
-4000
-2000
0
2000
4000
6000
-10 -8 -6 -4 -2 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
Cash in the account
Cash in the Account of the model case
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(million US$)
Start of the first unit operation
Start of the second unit operation Capital increase
4356 Million US$
(Year after the first unit start)
Summary of cash (million US$)
Face value of capital invested : 1400
NPV of investment : 1360
Face value of dividends : 1400
NPV of dividends : 606
Internal rate of return (IRR) : 0.0 %/year
8**S-GE-20140003
Sensitivities of Parameters
Influencing the Production Cost
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8**S-GE-20140003
Sensitivity study concerning influencing parameters
• Sensitivities to 30-years-averaged whole sale price by parameters changed
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Model Case
(6.097 cent/kWh)
Change of
parameter
Result by change
(cent/kWh)
Machinery & equipment cost (million US$) 4500 +200 6.200
Civil & building construction cost (million US$) 1250 +200 6.201
Bank loan interest (%/y)
Escalation rate (%/y)
2.0
1.0
+1.0
+0.5 6.627
Nuclear fuel price (million US$/EFPY) 70 +10 6.280
Work force number 700 +100 6.214
Maintenance cost rate for machinery (%/y) 2.0 +0.5 6.292
Machinery & equipment price 0.052 (cent/kWh)/(100 million US$) = 0.0232 (cent/kWh)/%
Civil & building price 0.052 (cent/kWh)/(100 million US$) = 0.0065 (cent/kWh)/%
Bank loan interest & escalation 0.530 (cent/kWh)/(increase by 1% & 0.5 %) = 0.0106 (cent/kWh)/%
Nuclear fuel procurement price 0.183 (cent/kWh)/(10 million US$/EFPY) = 0.0146 (cent/kWh)/%
Workforce number 0.117 (cent/kWh)/(100 people) = 0.0082 (cent/kWh)/%
Maintenance cost rate 0.390 (cent/Kwh)/(increase by 1 percent) = 0.0078 (cent/kWh)/%
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8**S-GE-20140003
Production Costs
other than the Model Case 1. Production cost in case of governmental budget.
2. Production cost in case of zero bank loan interest
3. Production cost in case of fixed whole sale price
4. Returns in case of fully-invested budget
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8**S-GE-20140003
1. Production cost in case of governmental budget
Production cost in case of state-owned company
• There may be a case where nuclear power plants are built by governmental
budgets. Namely, construction expenditures don’t need to be paid back. The
electric utility borrows a little money for nuclear fuel and operation expenditures
and pays it back from sales incomes.
• In this case, the whole sale price of 3.21 cent/kWh in the year 201X and 4.40
cent/kWh at the year 201X+31 (the average in the life is 3.805 cent/kWh) results
in the balance sheet of the year 201X+31;
• The cash 2906 million US$ will be used for spent fuel disposal, decommissioning
and disposal of nuclear fuel in the reactor.
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Assets (Million US$) Liabilities (Million US$)
Cash 2,906 Bank loan 0
Nuclear fuel 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,834)
Land ? Capital (stock) 0
Retained Earnings 392
Total 3,116 Total 3,116
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Production cost in each year
Production cost in the life
Whole sale price in the life
Whole sale price in each year
1. Trend of production cost in case of governmental budget
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(cent/kWh)
3.63 cent/kWh
Year after the first unit start
3.805 cent/kWh
6.10 cent/kWh
3.21 cent/kWh
5.22 cent/kWh 4.40 cent/kWh
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Miscellaneous expenditures
Labor Cost
Nuclear fuel consumption
Maintenance
Interest of bank loan
Reserve for decommissioning
Reserve for spent fuel disposal
1. Factors of production cost in case of governmental budget
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(cent/kWh)
Trend of whole sale price
10%
8% 1%
23%
25%
24%
9%
Percentages
in the life
8**S-GE-20140003
2. Production cost in case of zero bank loan interest
Production cost in case of state-owned company
• In case where the holding company or government supplies the amount for the
construction cost, the bank loan interest probably becomes zero. In this case, the
capital of production company can be only a formality such as 100 Million US$.
• The whole sale price of 4.82 cent/kWh in the year 201X and 6.59 cent/kWh at the
year 201X+31 (the average in the life is 5.671 cent/kWh) results in the balance
sheet of the year 201X+31;
• The cash 3009 million US$ will be used for spent fuel disposal, decommissioning
and disposal of nuclear fuel in the reactor.
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Assets (Million US$) Liabilities (Million US$)
Cash 3,009 Bank loan 0
Nuclear fuel 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,723)
Land ? Capital (stock) 100
Retained Earnings 396
Total 3,219 Total 3,219
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Production cost in each year
Production cost in the life
Whole sale price in the life
Whole sale price in each year
2. Trend of production cost in case of zero bank loan interest
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 29
(cent/kWh)
5.31 cent/kWh
Year after the first unit start
Loss
Profit End of depreciation of
machinery
5.671 cent/kWh
Shutdown of
the first unit
6.10 cent/kWh
4.82 cent/kWh
10.41 cent/kWh
6.59 cent/kWh
8**S-GE-20140003
3. Production cost in case of fixed whole sale price
Production cost in case of fixed whole sale price
• In case where investors establish an independent power production company
(IPP company), the whole sale price will be fixed for a long term by contract.
• If the whole sale price is fixed at 5.941 cent/kWh eternally from 201X until
201X+31, the balance sheet of the year 201X+31 becomes similar to the base
case;
• Owing to the higher price in the early age in case of fixed price, the diminution of
bank loan balance became more rapid than the model case. This led to a lower
averaged production cost (5.941 cent/kWh) than the model case (6.097 cent/kWh).
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 30
Assets (Million US$) Liabilities (Million US$)
Cash 4,259 Bank loan 0
Nuclear fuel 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,723)
Land ? Capital (stock) 1,400
Retained Earnings 345
Total 4,469 Total 4,469
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Production cost in each year
Production cost in the life
Whole sale price in each year
3. Trend of production cost in case of fixed whole sale price
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(cent/kWh)
Year after the first unit start
Profit
Loss
5.61 cent/kWh
5.941 cent/kWh
6.10 cent/kWh
11.74 cent/kWh
8**S-GE-20140003
4. Returns in case of fully-invested budget
Business model assumed
• There may be a case where a whole sale production company is newly
established by investors in the private sector, who expect sufficient returns
through stock dividends.
Amount of investment assumed and its net present value (NPV)
• It was assumed that the amount of 6400 million US$ would be invested by
investors for the power plant construction as the capital of entity on the condition
that it would be deposited in accordance with the construction work progress and
it would be totally recovered through stock dividends during the power production.
• The NPV of 6400 million US$ invested during the construction is 5321 million
US$ at the year 201X-10.
• At least the total of investment shall be returned to the investors through
dividends and the entity shall not have excessive debts at the year 201X+31.
• After 30 years operation, the cash in the balance sheet shall be greater than the
total of reserves. At that moment, the balance sheet still has formally 6400 million
US$ as the capital, but in reality the capital has no value.
• The amount of retained earnings can be negative after the start of power
production, but its absolute value must be smaller than the capital, if negative.
The summation of the capital and retained earnings may be divided to the
investors when the entity is dissolved after decommissioning.
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8**S-GE-20140003
4. Returns in case of fully-invested budget
Case A) Internal rate of return (IRR) under the lowest sale price
• The lowest sale price is defined on the condition that the total of NPV of dividends
is same as the NPV of invested capital and that the summation of capital and
carryover profit at the year 201X+31 is close to zero.
• The total of NPV of a fixed dividend by 466 million US$/year from the year 201X+1
until 201X+31 corresponds to the NPV of investment (5321 million US$).
• This means that the dividend of 466 million US$/year, of which the face rate is
7.28 %/year, is equivalent to the IRR of 2.5 %/year to the investors,.
• In order to obtain the dividend by 466 million US$/year, the sale price shall be 6.80
cent/kWh in the year 201X and 9.32 cent/kWh at the year 201X+31 (the average
in the life is 8.026 cent/kWh), which results in the balance sheet of the year
201X+31;
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Assets (Million US$) Liabilities (Million US$)
Cash 2,781 Bank loan 0
Nuclear fuel 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,723)
Land ? Capital (stock) 6,400
Retained Earnings - 6,132
Total 2,991 Total 2,991
8**S-GE-20140003
4. Returns in case of fully-invested budget
Case B) Sale price to obtain the IRR of 4 %/year
• In the case A) the investors can receive only same NPV as their investment.
However, investors never invest their money in the nuclear power production if IRR
is similar to the discount rate. The IRR should be some percentages higher than the
discount rate. Hence, it was assumed that the target of IRR was 4 %/year.
• A fixed dividend by 624 million US$/year from the year 201X+1 until 201X+31
resulted in the NPV of 7124 million US$ and the IRR is 4.0 %/year. The face rate of
dividend of 624 million US$/year was 9.75 %/year.
• In order to obtain the dividend by 624 million US$/year, the sale price had to be 8.18
cent/kWh in the year 201X and 11.20 cent/kWh at the year 201X+31 (the average in
the life is 9.642 cent/kWh), which resulted in the balance sheet of the year
201X+31; (Same carryover profit as that of Case A.)
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 34
Assets (Million US$) Liabilities (Million US$)
Cash 2,781 Bank loan 0
Nuclear fuel 210 Reserve for spent fuel 1,523
Machinery 0 Reserve for decommissioning 1,200
Civil & buildings 0 (Total) (2,723)
Land ? Capital (stock) 6,400
Retained Earnings - 6,132
Total 2,991 Total 2,991
8**S-GE-20140003
4. Returns in case of fully-invested budget
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 35
-8000
-6000
-4000
-2000
0
2000
4000
6000
8000
10000
12000
14000
-10 -8 -6 -4 -2 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
Case A)
Case B)
Gross face value :
13980 million US$.
Net face value :
7580 million US$
NPV of gross:
5621 million US$
Gross face value :
18720 million US$
Net face value :
12320 million US$
NPV of gross :
7124 million US$
Averaged electric price : 8.026 cent/kWh.
Fixed dividend of 466 million US$/year which
is of the IRR of 2.5 %/year.
Averaged electric price : 9.642 cent/kWh.
Fixed dividend of 624 million US$/year which
is of the IRR of 4.0 %/year.
Cumulative figures of cash flows
NPV of investment :
5621 million US$
Gross face value
of dividends
Net face value
of dividends
8**S-GE-20140003
Conclusion
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 36
8**S-GE-20140003
Conclusion on Fulfillment of User Requirements (1)
UR 1: Cost of energy - Criterion 1.1: Cost competiveness
The production cost of NES was demonstrated
However the cost competiveness against alternative energy sources was not
assessed.
UR 2: Ability to finance - Criterion 2.1: Attractiveness of investment
The total investment for NES was suggested to be attractive to investors.
- Criterion 2.2: Investment limit
The total investment demonstrated was acceptable in investment markets.
UR 3: Investment risk - Criterion 3.1: Maturity of design
The NES demonstrated has same designs as existing one and is sufficiently
mature.
- Criterion 3.2: Construction schedule
The production cost demonstrated was assessed based on experiences of same
design NES and is very realistic.
- Criterion 3.3: Uncertainty of economic input parameters
Sensitivity analysis was demonstrated to be acceptable to investors.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 37
stands for “demonstrated and satisfies A.L.”
stands for “not demonstrated”.
8**S-GE-20140003
Conclusion on Fulfillment of User Requirements (2)
UR 3: Investment risk (continued)
- Criterion 3.4: Political environment
Not assessed (Out of assessment scope).
UR 4: Flexibility - Criterion 4.1: Flexibility
NESs having same designs for components with different reactor outputs already
have been constructed. Hence, the flexibility for different markets exists.
Concluding remarks • The total investment for NES and its production cost were demonstrated. The 30-
years averaged production cost was estimated 6.097 cent/kWh including reserves
for decommissioning and disposal of spent fuel. The assessment results satisfied
INPRO user requirements with the exception of Acceptance Limits 1.1 and 3.4
which were out of scope of this report.
• In case of low-inflation-rate countries the depreciation of properties and nuclear
fuel cycle cost dominate the production cost. Then the maintenance cost and
labor cost follow. Especially the labor cost will have a major percentage near the
end of plant life.
• If the nuclear power plant would be built with governmental budget, the
maintenance cost, nuclear fuel cost and labor cost would evenly account for one
quarter of production cost. © 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 38
Back
8**S-GE-20140003
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 8**S-GE-20140003
Thank you for kind attention!
8**S-GE-20140003
Appendix 1. Items of construction cost
2. Progress of construction project
3. Variety of depreciation rules
4. Nuclear fuel cost in the market price
5. Prime rates and inflation rates
6. Load factor
7. Plant personnel needed
8. Administration and other operation expenditures
9. Annual earning, profit tax, balance sheet and the
simulation sheet
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 40
8**S-GE-20140003
App-1. Items of Construction Cost (1)
How to estimate SSC construction costs
• Financial statements of electric power company are opened to investors.
• In balance sheets, the payments for construction are appropriated in the
item “construction in progress” as one of properties until the start of power
production. Then, at the moment of initial power operation, the amount of
“construction in progress” is transferred into specific property items such as
machinery, equipment and buildings, which are supposed to be
depreciated every year. Therefore, the construction cost can be calculated
by comparing balance sheets for two or more continuous years.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 41
(Fiscal year 1) (Fiscal year 2) (Fiscal year 3) (Fiscal year 4)
Construction-in-
progress of FY1
Construction-in-
progress of FY2
Item of property
of FY1
Item of property
of FY2Item of property
of FY3
Item of property
of FY4
Increment of construction-
in-progress during FY3
8**S-GE-20140003
App-1. Items of Construction Cost (2)
Estimation of construction costs
• The construction costs of Model Case were estimated by referring a typical Gen-III
3 loop PWR plant producing 2660 MWt designed and built before the Fukushima
Daiichi Accident. The plant referenced is the latest NPP in Japan.
• Thus, to begin with, the construction cost for the second unit was estimated by
referring it because the plant referenced was an additional unit to the existing
units. Then, the estimation for the first unit was developed by considering
additional costs necessary for the first unit in one site in addition to the second unit
construction cost estimated.
• The number of items of properties in the balance sheet of financial statements was
many, but in this study various items were put together into three categories;
“Machinery & equipment”, “Civil works” and “Building constructions”.
• As known well, the construction cost for civil works strongly depends on
geographical features of the site and designs for cooling water source. In this
study, it was assumed that the site would faced at sea coastline, that cooling water
would be available near the site and that heavy components could be transported
by ship. Besides, it was also assumed that much civil works common to both units
would be made in the scope of the first unit.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 42
8**S-GE-20140003
App-1. Items of Construction Cost (3)
• In addition to nuclear power plant units, there are many facilities to be constructed
in the site. The category of operation/administration facilities stands for facilities
necessary for supporting the units, which includes;
- Radioactive waste treatment facilities
- Pure water production facility
- Training facility for operators & maintenance technicians
- Technical support center
- Environment monitoring system
- Security system
- Fire station and engines
- Urgent medical treatment facility
- Administration office, canteen and so on.
• These operation/administration facilities were assumed to be built before the start
of first unit operation.
The policy on how to settle spent fuel assemblies influences the nuclear energy
production cost. In this study, however, a temporary storage facility for spent fuel
assemblies was assumed to be built in 10 years later due to the lack of fuel cycle
policy.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 43
8**S-GE-20140003
App-1. Items of Construction Cost (4)
Foreign exchange rate assumed
• The information on the construction costs was obtained in JPY. The foreign
exchange rate from Japanese Yen (JPY) to US Dollar (USD) was assumed to be
fixed at 1 USD = 100 JPY because the rate has been around 101 JPY/USD in
these years.
Finally, it was assumed that the followings will be paid to vendors.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 44
(million US$) Unit 1 Unit 2
Machinery and equipment including installation charges 2300 2200
Civil works 400 200
Building constructions 350 300
Operation/administration facilities 200
Spent fuel storage facility 180
Back
8**S-GE-20140003
App-2. Progress of Construction Project (1)
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 45
X-9 X-8 X-7 X-6 X-5 X-4 X-3 X-2 X-1 X1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
▼ ▼ ▼ ▼First Pouring of Concrete CO
▼ Permission ▼ ▼ ▼ ▼
▼CHT ▼
Hot Functional Tests
Erection of Reactor Building
Erection of Reactor Auxiliary Building
Erection of Turbine Building
Te
Preparative civil works for the site
・An environment investigation was carriedout by in the year (X-13) and (X-12).
・An environmental impact statement waspresented to the authority in the year (X-11).
Safety Review of Nuclear Installation
Review of EnvironmentalImpact Statement since 1998.
Preparative Stage
Installation of Integrated Digital Computer Control System
Erection of Containment Vessel
Initial Core Loading
Temporary suspension of erection in the winter time
Structure Erection in Containment Vessel Equipment Installation in
Containment Vessel
Initial Electric Power Supply to Auxiliary Transformer by 275 KV
Start of RCS Flushing
Installation of Main Transformer
Installation of Main Turbine
Installation of Main Generator
Installation of Turbine Condenser
Equipment Installation in Reactor Building and Auxiliary Building
Erection and Installation Stage
Initial Criticality of Reactor
Construction Plan Reviews
Tests andCommissioning Stage
Cold Functional Tests
• Schedule experienced in the plant construction referenced
Back
8**S-GE-20140003
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2
Civil works
Building constructions
Machinery and equipment
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2
Civil works
Building constructions
Machinery and equipment
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2
Civil works
Building constructions
Machinery and equipment
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2
Civil works
Building constructions
Machinery and equipment
App-2. Progress of Construction Projects (2)
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 46
(Unit 1) (Unit 2)
Annual progress Annual progress
Cumulative degree Cumulative degree
Startup test Startup test
• Experience of monetary-base work progress of past twin-units construction
Year 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+9 Start of civil works First concrete of Startup test ▼ ▼ of Unit 1 ▼ of Unit 2 ▼ of Unit 1 ▼ of Unit 2Machinery and equipment 0.10 0.00 0.00 0.30 0.20 0.20 0.20
Unit 1 Civil works 0.20 0.15 0.15 0.15 0.15 0.10 0.10Building constructions 0.00 0.00 0.00 0.20 0.40 0.30 0.10Machinery and equipment 0.00 0.00 0.00 0.00 0.30 0.20 0.20 0.20 0.10
Unit 2 Civil works 0.00 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.10Building constructions 0.00 0.00 0.00 0.10 0.20 0.30 0.20 0.10 0.10
Common Spent fuel storage construction 1.00Operation/administration facilities 0.00 0.00 0.25 0.25 0.25 0.25 0.00
Payment
plan
assumed
in Model
Case
Back
8**S-GE-20140003
App-3. Variety of Depreciation Rules
Machinery & Equipment Civil works & Buildings
Method Duration Method Duration
Model Case Straight-line 16 years for the
total amount
Straight-line 30 years
US America In principle,
straight-line
In 3 – 20 years,
depending on kinds
Straight-line In 27.5 or 39 years
Japan Choice of straight-
line or accelerated
(fixed rate)
In 3 – 22 years,
depending on kinds
Straight-line In 21 – 50 years,
depending on kinds
France In principle,
straight-line
In the period of in-
service
Straight-line In the period of in-
service
Korea Choice of straight-
line or accelerated
(fixed rate)
In 5 – 20 years,
depending on kinds
Straight-line In 40 years
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 47
Back
8**S-GE-20140003
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Uranium Ore
Conversion Service
Enrichment Service
Total
App-4. Nuclear Fuel Cost in the Market Price
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 48
• The figure shows the nuclear fuel procurement cost excluding fuel assembly
manufacturing for one effective-full-power-year (EFPY) operation of 2660 MWt.
• 70 (million US$)/EFPY corresponds to 0.858 cent/kWh in the Model Case.
(million US dollar)/(EFPY)
70 (million US$)/(EFPY) was
assumed for Base Case including
fuel assembly manufacturing cost.
Back
8**S-GE-20140003
App-5. Prime rates and inflation rates
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 49
Prime Rate at May 2014 (%/y) Inflation Rate during 2013 (%/y)
Model Case 2.00 1.00
US America 3.25 1.46
Japan 1.475 0.36
France 0.25 (Euro zone) 0.70
Korea 2.50 1.36
Indonesia (around 10%) 6.41
Vietnam (around 9%) 6.04
Turkey 9.5 7.49
Back
8**S-GE-20140003
App-6. Load Factor
Load factor was assumed by considering;
- The power plants are operated in full power for base load supply.
- The frequency of refueling & periodical inspection outage : every 4 years
The duration of refueling & periodical inspection outage : 4 weeks
- The frequency of refueling outage : 2 times in 4 years
The duration of refueling outage : 19 days
- The frequency of overhauling outage : every 12 years
The duration of overhauling outage : 8 weeks
• Consequently each unit has for 30 years; - 23 times of 465-days continuous power operation
- 16 times of 19-days refueling outage
- 5 times of 28-days refueling & periodical inspection outage
- 2 times of 56-days refueling & overhauling outage
The calculation mentioned-above results in the load factor of ca. 95 %.
But by conservatively taking into account unanticipated shutdowns, 90 %
was used for the Model Case. The 5 % diminution corresponds to 80
times of 7-days unplanned shutdowns in 30 years.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 50
Back
8**S-GE-20140003
App-7. Plant personnel needed (1)
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 51
Organization for twin-units PWR Population Stationed in the site
Engineers &
Specialists Technicians Outsourced
Plant Director 1
Deputy Plant Director for General Affairs/Commerce (non-technical area) 1
General Affairs Section 1
Secretariat, General Affairs, Logistics 14
Asset Management & Accounting Section 1
Accounting & Asset Management 3
Procurement & Purchase 4
Human Resource & Industrial Safety Section 1
Human Resources 3
Industrial Safety & Clinic 2 2
Deputy Plant Director for Engineering Management 1
Reactor Safety Staff 2
Training & Education Staff 2
Quality Assurance Staff 3
Engineering & Technical Support Section 1
General Technical Affairs & Technical Support 9
Configuration Control & Document Room 2
(Document room) 6
Nuclear Fuel & Reactor Core Section 1
Reactor Core Management & Fuel Handling 7
Radiation Control Section 1
Radiation Protection 17
(Radiation monitor maintenance) 2
(Radiation survey meter maintenance) 5
(Access control to radiation area and other supplemental works) 18
(Radioactive Waste Facilities' Operation & Handling) 18
(Laundry work) 20
(Housekeeping in the control area) 12
Environment Monitoring 7
(Environment research of sea area)
(Supplemental works of environment monitoring) 4
Water Chemistry Control Section 1
Water Chemistry Control 8
(Supplemental works of chemical analysis) 9
(Water Processing Facilities' Operation) 5
8**S-GE-20140003
App-7. Plant personnel needed (2)
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 52
Deputy Plant Director for Facility Management and Operation 1
Facility Management Section 1
Facility Modification Planning 6
Steam Generator Cleanup Taskforce 5
Maintenance Budget & Account 4
Work Planning for Refueling Outage 4
Plant Operation Section 1
Expenditure & Operation Section Management 4
Plant Operation Management 8
(Supplementary work for plant facility operation) 1
Isolation Planning for Refueling Outage 5
Operation Shift
Shift supervisor 6
Unit supervisor 12
Operator 24
Patroller 30
Deputy Plant Director for Plant Maintenance 1
(Daily maintenance work of plant facilities) 212
Electrical Maintenance Section 1
Instrumentation & Control System - Primary system 16
Instrumentation & Control System - Turbine island 13
(Control valve maintenance) 7
Electrical Equipment 13
(Maintenance tool room) 2
Mechanical Maintenance Section 1
Reactor System 13
Auxiliary of Primary Island 16
Turbine Island 11
(Spare-parts storage and machine shop) 2
Architectural Maintenance Section 1
Building 3
Civil Facility & Earthwork 3
Total in the power plant 296 293 40
Miscellaneous
Nuclear Training Center 1
Teachers on the machinery & equipment 4
Instructors on the plant operation 3
Public Relation Pavilion 1 10
Security Control Service ?
Canteen ? Back
8**S-GE-20140003
App-8. Administration and other operation expenditures
Followings have to be paid in addition to the front end fuel cost, maintenance cost
and labor cost.
1. Office expenditures, articles for consumption and others : 9 (million US$/year)
(Gases, chemicals, fuel for diesel generator, clothes for controlled area, etc)
2. Outsourcing costs except for the maintenance : 5 (million US$/year) per unit
(Operation of radioactive waste handling, access control to radioactive control
area, housekeeping, laundry workers, security guards, and so on)
3. Low level radioactive waste disposal cost : 2 (million US$/year) per unit
(This is paid to the cooperative disposal facility.)
4. Charge for the nuclear accident insurance : 4 (million US$/year) per unit
5. Expense of training facility operation: 1 (million US$/year)
6. Fixed asset property tax : 1.5 % of booked value /every year
7. Reserve for spent fuel disposal: 3.5 (US$/MWh)
8. Reserve for decommissioning : 20 (million US$/year) per unit until 600 (million US$)
• In total, the amount from item 1 to 5 becomes 21 (million US$/year) for single unit and
32 (million US$/year) for twin units.
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 53
Back
8**S-GE-20140003
App-9. Annual Earning, Profit Tax and Balance Sheet
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 54
Assets (Property) ・ Currency ・ Bank deposits ・ Bonds ・ Fuel
Coal
Oil
Nuclear fuel
・ Cars ・ Equipment ・ Real estates etc
Liabilities (Debt) ・ Bank loans ・ Corporate bonds ・ Reserve funds
Water shortage
Capital
Carry-over profit
Expense (Prime cost) ・ Labor cost ・ Fuel cost
Coal Oil Nuclear fuel
・ Maintenance cost ・ Depreciation etc (Non-operating expense)
・ Interest payment
Income (Revenue)
・ Sale of electricity
Annual profit
Balance Sheet Annual Earning Statement
Corporation Profit Tax
Stock Dividends Back
Retained Earnings
(= carryover profit)
Dividends
8**S-GE-20140003
App-9. Change in the Balance Sheet
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 55
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
Currency (cash deposit in bank)
Machinery & equipment
Civil works and buildings
Nuclear Fuel
Lands
Construction-in-process Account of Unit 1
Construction-in-process Account of Unit 2
Bank Loan
Reserve for spent fuel disposal
Reserve for decommissioning
Capital
Carryover Profit or Deficit
(million US$)
(Assets) (Liabilities, Capital and Carryover profit)
(201X-10) (201X-4) (201X-0) (201X+2-0) (201X+5) (201X+31)
Unit 1
Unit 1
Unit 2
Unit 2
Unit 2
Back
8**S-GE-20140003
App-9. Work Sheet simulating Model Case
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 56
Year 201X-10 201X-9 201X-8 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2 201X+3 201X+4 201X+5 201X+6 201X+7 201X+8 201X+9 201X+10 201X+11 201X+12 201X+13 201X+14 201X+15 201X+16 201X+17 201X+18 201X+19 201X+20 201X+21 201X+22 201X+23 201X+24 201X+25 201X+26 201X+27 201X+28 201X+29 201X+30 201X+31
Start of Earthworks & Civil works ▼ ▼ Start of Plant Construction ▼ Start of Unit 1 Operation ▼ Construction of Spent Fuel Storage
▼ Start of Unit 2 Operation
Generic Economical ParametersLabor Unit Price (Million US$/year) 0.12 0.120 0.121 0.122 0.124 0.125 0.126 0.127 0.129 0.130 0.131 0.133 0.134 0.135 0.137 0.138 0.139 0.141 0.142 0.144 0.145 0.146 0.148 0.149 0.151 0.152 0.154 0.155 0.157 0.159 0.160 0.162 0.163 0.167 0.170 0.174 0.177 0.181 0.184 0.188 0.192 0.196 0.200
Prime Rate of Bank Loan (%) 2.00 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000
Escalation Rate (%/y) 1.00 1.000 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.173 1.184 1.196 1.208 1.220 1.232 1.245 1.257 1.270 1.282 1.295 1.308 1.321 1.335 1.348 1.361 1.375 1.389 1.403 1.418 1.433 1.448 1.464 1.480 1.496 1.512
Discount Rate (%/y) 2.50 1.000 0.976 0.952 0.929 0.906 0.884 0.862 0.841 0.821 0.801 0.781 0.762 0.744 0.725 0.708 0.690 0.674 0.657 0.641 0.626 0.610 0.595 0.581 0.567 0.553 0.539 0.526 0.513 0.501 0.489 0.477 0.472 0.467 0.463 0.459 0.455 0.451 0.447 0.443 0.440 0.436 0.433
Electricity ProductionProduction Capacity (MWe) 931 931 931 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1000 931
Load Factor (%) 90 55 90 72.5 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90
In-house consumption rate (%) 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5
Unit Price of Whole Sale (US$/MWh) 46.8 4,356 51.7 52.2 52.7 53.3 53.8 54.3 54.9 55.4 56.0 56.5 57.1 57.7 58.3 58.8 59.4 60.0 60.6 61.2 61.8 62.5 63.1 63.7 64.4 65.0 65.7 66.4 67.1 67.8 68.5 69.2 70.0 70.8
Population of Employees 700 500 600 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700
Maintenance Cost Ratio to Initial Machinery Property (%) 2.00 2.00 2.02 2.04 2.06 2.08 2.10 2.12 2.14 2.17 2.19 2.21 2.23 2.25 2.28 2.30 2.32 2.35 2.37 2.39 2.42 2.44 2.46 2.49 2.52 2.54 2.57 2.59 2.62 2.65 2.68 2.71 2.74
Maintenance Cost Ratio to Initial Civil & Building Property (%) 1.00 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.20 1.21 1.22 1.23 1.24 1.26 1.27 1.28 1.30 1.31 1.33 1.34 1.35 1.37
Other Operation Expenditures (Million US$/year) 32 23.2 35.7 36.1 36.4 36.8 37.2 37.5 37.9 38.3 38.7 39.0 39.4 39.8 40.2 40.6 41.0 41.4 41.9 42.3 42.7 43.1 43.6 44.0 44.5 44.9 45.4 45.9 46.3 46.8 47.3 47.9 48.4
Depreciation rate of machinery & equipment (/year) 0.0625 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063
Depreciation rate of civil works & buildings (/year) 0.0333 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033
Property Tax Rate of Facility Property (%) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Construction in Process of Unit 1Population of Employees (persons) 30 30 30 30 30 30 60 150 200 300
Machinery & equipment (Million US$) 2,300 0.0 0.0 0.0 230.0 0.0 0.0 690.0 460.0 460.0 460.0
Civil works (Million US$) 400 0.0 0.0 0.0 80.0 60.0 60.0 60.0 60.0 40.0 40.0
Building construction (Milllion US$) 350 0.0 0.0 0.0 0.0 0.0 0.0 70.0 140.0 105.0 35.0
Interest of bank loans (Million US$) 62 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.8 22.4 37.9
(Total) (Million US$) 3,112 0.0 0.0 0.0 310.0 60.0 60.0 820.0 661.9 627.4 573.0
Construction in Process of Unit 2Population of Employees (persons) 0 0 0 0 0 0 0 0 0 0 60 60
Machinery & equipment (Million US$) 2,200 0.0 0.0 0.0 0.0 0.0 0.0 0.0 660.0 440.0 440.0 440.0 220.0
Civil works (Million US$) 200 0.0 0.0 0.0 0.0 30.0 30.0 30.0 30.0 20.0 20.0 20.0 20.0
Building construction (Milllion US$) 300 0.0 0.0 0.0 0.0 0.0 0.0 30.0 60.0 90.0 60.0 30.0 30.0
Interest of bank loans (Million US$) 108 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 9.6 20.1 31.3 46.9
(Total) (Million US$) 2,808 0.0 0.0 0.0 0.0 30.0 30.0 60.0 750.2 559.6 540.1 521.3 316.9
Construction of Other Facilities (Million US$)Spent Fuel Storage Facility - Building & Casks 180 180
Operation/administration facilities 200 20.0 60.0 40.0 40.0 40.0
(Total) 0.0 0.0 0.0 0.0 0.0 20.0 60.0 40.0 40.0 40.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 180.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Nuclear Fuel (Million US$/2660MWtEFPY)=(Million US$/931MWeEFPY) 70 0.0 0.0 0.0 0.0 0.0 0.0 0.0 70.0 70.0 140.0 133.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126 126 126 126 126 126 126 126 63 63 0
Cash Balance (Million US$)Face Value of Capital Increase 1400 700 0 0 0 700 0 0 0 0 0 0 0
Cash-inCapital by stocks 700 0 0 0 700 0 0 0 0 0 0 0
Bank Loans 0 0 0 0 0 0 100 1,500 1,300 1,300 700 300 0 -200 -200 -200 -300 -200 -300 -100 -300 -300 -400 -300 -400 -400 -400 -400 -300 -400 -100 0 0 0 0 0 0 0 0 0 0 0
Net Cash-in of Electricity Sale Business 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -23.8 97.9 170.0 324.0 338.3 352.6 367.0 383.3 397.8 414.3 424.2 440.8 457.5 476.1 493.0 511.7 530.6 549.6 566.5 579.3 593.8 603.4 610.5 617.7 625.2 632.9 640.9 649.1 657.5 666.3 293.7 260.7
Cash-outConstruction of Unit 1 0.0 0.0 0.0 310.0 60.0 60.0 820.0 660.0 605.0 535.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Construction of Unit 2 0.0 0.0 0.0 0.0 30.0 30.0 60.0 750.0 550.0 520.0 490.0 270.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Construction of Other Facilities 0.0 0.0 0.0 0.0 0.0 20.0 60.0 40.0 40.0 40.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 180.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Nuclear Fuel (No escalation) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 70.0 70.0 140.0 133.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 63.0 63.0 0.0
Interest payment of bank loan during construction 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 32.0 58.0 31.3 46.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Corporation Profit Tax (%) 30 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 36.2 91.4 95.2 99.6 102.5 104.6 106.8 109.0 111.3 113.7 116.2 118.7 121.3 25.6 26.7
Stock Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Cash-flow 700.0 0.0 0.0 -310.0 610.0 -110.0 -840.0 -22.0 3.0 7.0 21.8 -44.9 44.0 -2.0 12.3 26.6 -59.0 57.3 -28.2 8.3 -1.8 14.8 -68.5 50.1 -33.0 -14.3 4.6 -12.7 49.1 -41.9 268.2 375.0 379.9 385.0 390.2 395.6 401.2 406.9 412.8 481.9 205.1 234.0
Net electricity production (GWh) 4,284 7,010 11,293 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 7,529 7,010
Production cost at the transmission line (US$/MWh) 117.4 79.9 84.3 70.2 69.7 69.2 68.7 68.1 67.6 67.0 66.9 66.3 65.6 64.9 64.3 63.5 62.8 52.6 40.1 39.8 39.4 39.4 39.7 39.9 40.2 40.4 40.7 41.0 41.2 41.5 61.2 61.0
Lifetime average production cost (US$/MWh) 117.4 94.1 89.2 81.9 78.5 76.5 75.1 74.1 73.2 72.5 71.9 71.4 70.9 70.4 70.0 69.5 69.1 68.1 66.5 65.1 63.8 62.6 61.5 60.6 59.7 58.9 58.2 57.6 57.0 56.4 56.5 56.6
Lifetime average unit price after the start of operation (US$/MWh) 51.7 52.0 52.4 52.7 53.0 53.3 53.6 53.9 54.1 54.4 54.7 55.0 55.3 55.6 55.8 56.1 56.4 56.7 57.0 57.3 57.6 57.9 58.2 58.5 58.8 59.2 59.5 59.8 60.2 60.5 60.8 60.97
Present value of investments as capital 1,334 700 0 0 0 634 0 0 0 0 0 0 0
Present Value of Dividend Returns 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Annual Earning Statement (Million US$)Income
Sales 221.5 366.0 595.6 746.7 754.2 761.7 769.3 777.0 784.8 792.7 800.6 808.6 816.7 824.8 833.1 841.4 849.8 858.3 866.9 875.6 884.3 893.2 902.2 911.4 920.8 930.4 940.2 950.1 960.3 970.7 527.0 496.1
Interest of currency in bank 0.0 0.1 0.0 0.1 0.1 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.2 0.0 0.2 0.1 0.1 0.1 0.0 0.2 0.1 1.0 2.4 3.9 5.6 7.3 9.3 11.3 13.5 15.9 18.8 20.4
(Total) 221 366 596 747 754 762 769 777 785 793 801 809 817 825 833 842 850 858 867 876 884 894 905 915 926 938 949 961 974 987 546 517
Prime costLabor Cost 66.3 80.3 94.7 95.6 96.6 97.5 98.5 99.5 100.5 101.5 102.5 103.5 104.6 105.6 106.7 107.7 108.8 109.9 111.0 112.1 113.2 114.4 116.7 119.0 121.5 124.0 126.5 129.1 131.8 134.6 137.4 140.3
Maintenance 53.5 54.0 104.6 105.6 106.7 107.7 108.8 109.9 111.0 112.1 113.2 114.4 115.5 116.7 117.8 119.0 120.2 121.4 122.6 123.8 125.1 126.3 127.6 128.9 130.2 131.6 133.0 134.4 135.8 137.3 66.3 67.1
Nuclear Fuel Consumption 38.5 63.0 101.5 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0
Operation Expenditures 23.2 35.7 36.1 36.4 36.8 37.2 37.5 37.9 38.3 38.7 39.0 39.4 39.8 40.2 40.6 41.0 41.4 41.9 42.3 42.7 43.1 43.6 44.0 44.5 44.9 45.4 45.9 46.3 46.8 47.3 47.9 48.4
Depreciation of machinery & equipment 156.1 156.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 166.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Depreciation of civil works & buildings 27.1 27.1 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 34.8 0.0
Property Tax 49.7 46.9 86.3 81.2 76.0 70.8 65.7 60.5 55.4 50.2 47.8 42.6 37.5 32.3 27.2 22.0 16.9 11.7 8.5 7.9 7.2 6.5 5.9 5.2 4.5 3.9 3.2 2.5 1.9 1.2 0.5 0.0
Interest of bank loans for operation 52.7 51.1 104.0 104.0 100.0 96.0 92.0 86.0 82.0 76.0 74.0 68.0 62.0 54.0 48.0 40.0 32.0 24.0 16.0 10.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Reserve for spent fuel disposal (US$/MWh) 3.50 15.7 25.7 41.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 27.6 25.7
Reserve for decommissioning (million US$/year/unit) 20.0 20.0 20.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 20.0 20.0
(Total) 503 560 952 984 977 970 963 955 948 939 938 929 920 910 901 891 880 738 562 558 552 553 556 559 563 567 570 574 578 582 461 427
Net Annual Profit(Total) -281 -194 -356 -237 -223 -208 -194 -178 -163 -147 -137 -120 -103 -85 -68 -49 -30 121 305 317 332 342 349 356 363 371 379 387 396 404 85 89
Balance Sheet (Million US$)Assets
Currency 700 700 700 390 1,000 890 50 28 31 38 60 15 59 57 69 96 37 94 66 74 72 87 19 69 36 21 26 13 62 20 289 664 1,044 1,428 1,819 2,214 2,616 3,022 3,435 3,917 4,122 4,356
Nuclear Fuel 0 0 0 0 0 0 0 70 140 280 375 438 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 399 336 210
Machinery & equipment 0 0 0 0 0 0 0 0 0 2,498 2,342 4474 4,174 3,875 3,576 3,277 2,978 2,679 2,380 2,261 1,962 1,662 1,363 1,064 765 466 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Civil works and buildings 0 0 0 0 0 0 0 0 0 814 787 1280 1,236 1,191 1,147 1,102 1,058 1,013 969 924 880 835 791 746 702 658 613 569 524 480 435 391 346 302 257 213 168 124 79 35 0 0
Lands 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Construction-in-process Account of Unit 1 0 0 0 310 370 450 1,330 2,032 2,699 3,312 0
Construction-in-process Account of Unit 2 0 0 0 0 30 60 120 870 1,430 1,970 2,491 2,808 0
(Assets Total) 700 700 700 700 1,400 1,400 1,500 3,000 4,300 5,600 6,054 6,206 5,931 5,585 5,254 4,937 4,534 4,248 3,876 3,721 3,376 3,047 2,635 2,341 1,965 1,607 1,268 1,044 1,048 962 1,186 1,516 1,852 2,192 2,538 2,889 3,246 3,608 3,977 4,351 4,458 4,566
LiabilitiesBank Loan 0 0 0 0 0 0 100 1,600 2,900 4,200 4,900 5,200 5,200 5,000 4,800 4,600 4,300 4,100 3,800 3,700 3,400 3,100 2,700 2,400 2,000 1,600 1,200 800 500 100 0 0 0 0 0 0 0 0 0 0 0 0
Reserve for spent fuel disposal 0 0 0 0 0 0 0 0 0 0 16 41 83 134 186 237 288 340 391 442 494 545 597 648 699 751 802 853 905 956 1,008 1,059 1,110 1,162 1,213 1,265 1,316 1,367 1,419 1,470 1,498 1,523
Reserve for decommissioning 0 0 0 0 0 0 0 0 0 0 20 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880 920 960 1,000 1,040 1,080 1,120 1,160 1,180 1,200
(Total) 0 0 0 0 0 0 100 1,600 2,900 4,200 4,936 5,281 5,363 5,254 5,146 5,037 4,828 4,720 4,511 4,502 4,294 4,085 3,777 3,568 3,259 2,951 2,642 2,333 2,125 1,816 1,808 1,899 1,990 2,082 2,173 2,265 2,356 2,447 2,539 2,630 2,678 2,723
CapitalStocks 700 700 700 700 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400
Carry-over Profit 0 0 0 0 0 0 0 0 0 0 -281 -475 -832 -1,069 -1,291 -1,500 -1,694 -1,872 -2,035 -2,181 -2,318 -2,438 -2,542 -2,627 -2,695 -2,744 -2,774 -2,690 -2,476 -2,254 -2,022 -1,783 -1,539 -1,290 -1,035 -775 -510 -239 38 321 381 443
(Total of Liabilities, Capital & Profit) 700 700 700 700 1,400 1,400 1,500 3,000 4,300 5,600 6,054 6,206 5,931 5,585 5,254 4,937 4,534 4,248 3,876 3,721 3,376 3,047 2,635 2,341 1,965 1,607 1,268 1,044 1,048 962 1,186 1,516 1,852 2,192 2,538 2,889 3,246 3,608 3,977 4,351 4,458 4,566
8**S-GE-20140003
© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 8**S-GE-20140003
The End