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Report No.
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Study on levelizing electricity generation cost for nuclear power generation between generations

Fukaya, Yuji

Evaluation of electricity generation cost is important to make energy policy. Levelizing technique for cost and benefit, i.e. discounting technique, plays an important role in the evaluation especially for Nuclear Power Generation (NPG) because the activity related to power generation have been performed beyond generations. There are many arguments for the discounting technique for a long term, e.g. the cost of climate change. However, those are few for the electricity generation cost for NPG. Therefore, I discuss the discounting technique by referring the history of cost evaluation for NPG and the recent discussion of backend problem. Moreover, gamma discounting, which attracts a particular interest because of the gradual decrees of effective discounting rate, and two-good model are attempted and discussed.

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