Tag Archives: d.finon

EPRG 0826

Dominique Finon, Fabien Roques

Financing arrangements and industrial organisation for new nuclear build in electricity markets

EPRG 0826 Non-Technical SummaryPDF

Also published in:

  • D. Finon & F. Roques, (2008). “Financing Arrangements and Industrial Organisation for New Nuclear Build in Electricity Markets,” Competition and Regulation in Network Industries, Intersentia, vol. 9(3), pages 247-282, September

Abstract: The paper studies how risks specific to a nuclear power investment in liberalised markets – regulatory, construction, operation and market risks – can be mitigated or transferred away from the plant investor through different contractual and organisational arrangements. It argues that significant risk transfers onto governments, consumers, and, vendors are likely to be needed to make nuclear power attractive to investors in liberalised markets, at least for the first batch of new reactors. These different types of risk allocations will in turn induce different investment financing choices. Four case studies of recent new nuclear projects illustrate the consistent combinations of contractual, organisational, and financial arrangements for new nuclear build depending on the industrial organisation, market position of the company and the institutional environment prevailing in different countries. The most likely financing structure will likely be based on corporate financing or some form of hybrid arrangement backed by the balance sheet of one or a consortium of large vertically integrated companies.

Keywords: electricity market, nuclear, financing

EP 75

Jean-Michel Glachant, Dominique Finon A Competitive Fringe in the Shadow of a State Owned Incumbent: The Case of France EP 75  | Non-Technical Summary | PDF Abstract: We examine what kind of competitive fringe has been built in France around the State owned incumbent without destroying it or significantly weakening its dominant position; what impacts… Read more

EP 21

Dominique Finon Introducing Competition in the French Electricity Supply Industry: The Destablisation of a Public Hierarchy in an Open Institutional Environment EP 21  | Non-Technical Summary | PDF Abstract: The French electricity supply industry is characterized by a vertically integrated monopoly and public ownership and when the government introduced market rules, it was with the… Read more