Project Description

PIA supported KACARE, DNEC, and other Saudi electricity sector stakeholders through an in-depth program on the economic and contractual integration of large nuclear power plants. The work aimed to equip decision-makers with practical insights into nuclear economics, risk management, and financing, framed against international best practices and Saudi Arabia’s energy transition context.

The sessions examined intrinsic risks unique to nuclear compared with conventional and renewable technologies, as well as options for structuring, contracting, and financing nuclear assets. Participants reviewed nuclear’s role in market organization and operations, including its implications for system stability and load-following capabilities. Key focus was given to negotiating nuclear PPAs, covering tariff formulas, revenue parameters, and risk allocation.

The program also assessed financing pathways, notably comparing the Regulated Asset Base (RAB) model with PPA-based approaches, and their respective impacts on investors, utilities, and government stakeholders. PIA’s contribution highlighted how carefully designed financial and contractual frameworks can de-risk nuclear investments, ensure competitive tariffs, and align with long-term national objectives.

Key Takeaways

Deploying nuclear power demands frameworks that differ from conventional generation. Risk allocation, tariff design, and financing models must be adapted to nuclear’s scale and long lifecycles. Comparative analysis shows that clear PPA structures and RAB mechanisms can enhance bankability, while aligning nuclear projects with system reliability and sectoral goals.

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