During a panel debate in late November 2004 in Brussels, Mr Luis Echavarri, Director General, OECD Nuclear Energy Agency (NEA) said that 'the competitiveness of nuclear energy continues to improve. If the decision to include nuclear in the energy mix is made on economic ground alone, then the case for nuclear energy could be compelling.' The comments were welcomed by world nuclear industry as a green signal to their endeavor for nuclear power in this energy scare environment. It is noted that RCA has been carrying out 'energy planning study in the competitive energy market and in the environmental path.

Mr Echavarri's comments came during the panel debate "Nuclear: A persuasive economic option", organized as part of the European Nuclear Assembly. The NEA Director General went on to cite how lower investment and fuel cycle costs had improved the projected profitability of new nuclear power plants. At the same time, gas prices were projected to rise and other technologies face the likely internalization of their external consists in the price, he said. The external costs of energy are costs that are imposed on society and the environment, but which are not included in the cost to producers and consumers. For conventional technologies these typically include waste disposal costs and environmental impact.

The NEA has extensively studied the economics of nuclear energy. These studies have covered its capital, investment, operation, maintenance and total costs as well as its competitiveness in liberalized energy markets. The NEAA will publish in March 2005 a major new joint study with the International Energy Agency (IEA) on the economics of electricity, including nuclear.

For further information, Karen Daifuku at daifuku@nea.fr