Project Description

The Kingdom of Saudi Arabia embarked on a substantial nuclear program, overseen by KA-CARE. Forming a development team, they engaged Paris Infrastructure Advisory (via the International Atomic Energy Agency) to initiate capacity building on nuclear energy financing. The program encompasses:

● Power Purchase Agreements (PPAs), Financing, and Financial Models.
● Nuclear Power Development in Selected Countries: examining contractual and regulatory frameworks, financing structures, return on experience, risk assessments applied to nuclear power plants, and prevalent risk-sharing frameworks (drawing insights from France, Belgium, and the US).

Specific areas addressed include:

● The pivotal role of PPAs in project finance.
● PPA organization and best practices.
● A recommended process for ensuring effective PPAs.
● An overview of France’s new nuclear power organization and its implications for financing.
● Key takeaways for the Saudi Nuclear Program, focusing on lessons learned and potential adaptations.

This collaborative effort aims to equip stakeholders with essential insights for successfully financing and executing Saudi Arabia’s ambitious nuclear program.

Key Takeaways

Nuclear power financing shares similarities with other large low-carbon power infrastructures, featuring high CAPEX, strategic importance, and environmental considerations. Market-based financing and robust public support are crucial. However, complexities arise from the nuclear fuel cycle and heightened safety concerns, necessitating comprehensive risk management strategies and regulatory oversight.

Our Building Blocks