Electricity generated by nuclear plants is among the cheapest available today, with production costs comparable to coal, oil or natural gas.
Although initial capital costs are high, nuclear plants typically have a long life, operating at high capacity, producing clean and economical energy with low fuel costs. Improved designs and standardization of reactor plans are expected to lower capital costs in the future.
Fuel costs make up a relatively small portion of the cost of nuclear energy and utilities have the ability to buy years’ worth of supply at a time, assuring secure supplies and reasonable costs through long-term contracts. Fuel is abundant, and there are many potential sources for uranium production and recycling yet to be tapped.
One other source of fuel is the HEU agreement between the United States and Russia. The agreement, which is in place until 2013, covers the dismantling of nuclear warheads to convert highly enriched uranium into fuel for nuclear power plants. More than 12,000 nuclear warheads have been eliminated through the Megatons to Megawatts program.
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