Risk Assessment in Construction Process in Nuclear Sector within the Central and Eastern Europe

Tomas Vlcek, Martin Jirusek, James Henderson

Abstract


This article assesses various risks arising within the process of building, running and decommissioning of nuclear units with the Central and Eastern Europe (CEE) where nuclear power is still perceived as a reliable and widely utilized energy source. The region is specific for its relations with Russia which is a dominant provider of technologies and fuel thanks to former ties between the region and the Soviet Union. The debate on building new nuclear producing units with Russian companies as potential contractors is thus echoing old concerns about the rise of Russian influence and one-sided dependency. The main conclusions are twofold. First, financing is the key issue to be addressed in order to conduct a successful project with current electricity prices undermining any new project not only in the region but also in Europe as a whole. Second, precise formulation of project documentation is crucial to avoid hidden costs, delays and potential disputes with contractors.

Keywords:  Power Generation; Nuclear Energy; Central and Eastern Europe; Russian Federation

JEL Classifications: H76; Q38; Q40; Q41; Q49


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