Fission for funds: The financing of nuclear power plants

The increasing decarbonisation pressure together with recent energy price shocks is fuelling a revived debate on new nuclear generation capacity in many European states. In this paper, we provide a synopsis of financing models currently being applied or under development for newly built nuclear power plants in Europe (with excursions to Türkiye and the United States), catering to the special risk profile of such projects. We find that nuclear power plant projects in Europe to a large extent only become bankable if a government is involved in de-risking the investment for private investors – eventually involving the exposure of taxpayers or ratepayers to the project risks.