Improving the Economics of Nuclear Power: Lessons Learned from the Korean Experience

A growing number of nuclear power plants throughout the United States face the prospect of premature shutdown and decommissioning, leading many to dismiss nuclear power as expensive and economically uncompetitive. However, many of the recent reactor shutdowns in the U.S. have been the result of market failures, and the rising costs of nuclear in the U.S. have largely been attributable to an uncertain regulatory environment, a failure to maximize on fixed costs, and other factors. Other countries’ experiences with nuclear power—such as that of South Korea, which reduced the costs of nuclear-generated electricity over a span of several decades—corroborate that nuclear is not inherently cost-prohibitive.