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Will a Regulated Asset Base Model Work for a New Nuclear Power Plant?

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Will a Regulated Asset Base Model Work for a New Nuclear Power Plant?

Edward Kees provides the commentary from consultation on the Regulated Asset Base (RAB) model for new nuclear power plant investment in Great Britain.

The challenges of delivering new nuclear power plant (NPP) investment in the reformed electricity industry in Great Britain are significant and there is no simple or easy approach to resolve those challenges.
The RAB model may be a useful tool if properly developed and implemented, but:

-Is complex and may be difficult to implement;

-May not clearly reflect the objectives for the British nuclear power industry;

-May not be relevant without a broader review and/or re-opening of the overall approach to the electricity industry structure and electricity market approach in Great Britain; and

-May not deliver desired new NPP investment, or may only deliver new NPP investment with EdF and/or other State-Owned Enterprises (SOEs), such as CGN from China.

We provide a response to the Consultation questions, as context for later sections of this Commentary that describe some issues that must be addressed to attract new NPP investment.

 

Read the full article, #30 – UK RAB Model, on the Nuclear Economics website.