Decommissioning funding

If a company has a number of projects at various stages of development, it has the option to pay for decommissioning with cash generated from younger fields. A company with only one project will not have this option and may choose to build up a 

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The cost of decommissioning may be considerable, and comes of course at the point when the project is no longer generating funds. Some source of funding will therefore be required, and this may be available from the profit of other projects, from a decommissioning fund set up during the field life or through tax relief rolled back over the late field production period. 

In the British decommissioning funding assurance scheme, the funds set aside are ascribed to a particular site, rather than being loosely maintained in the licensee s name. Therefore, if a reactor were to be sold, the decommissioning funds that had been earmarked for that reactor would be transferred as part of the sale. (Since the Magnox reactors continue to be owned by a public company. 

If the 450 million is discounted by 2% a year for the next 60 years for inflation, the value needed for decommissioning in 60 years will be approximately 1.5 billion. The annual contribution to a sinking fund to reach the 1.5 billion in 60 years at an interest rate of 6% will be 2.8 million per year, or only about 0.03 cent/kWh, the equivalent of two days worth of power sales from the plant. Thus, the sinking fund approach for a decommissioning fund has little impact on the cost of power from the plant. 

Despite ten years of works and implementation of related measures, the integral amount of necessary capital investment for elimination of environmental threats issuing from the Russian naval decommissioning objects, as of 2004, is estimated at 4 billion. With due regard for real capacities of funding by the Russian Federation (RF), appropriate solution of this challenge over 10-12 years will be only possible if international assistance is used - in particular that provided by the Northern Dimension Environmental Partnership (NDEP) initiative. 

Considering a large scale and complexity of the problems related to nuclear fleet complex decommissioning as well as time constraints to resolve these tasks, the identification of the most priority areas - where the available funding and industrial capacities should be focused on first of all - acquires the paramount importance. 

However with due regard for real budget funding of the entire program of complex decommissioning of NSs, MVs and environmental rehabilitation of former naval CMBs, optimal NS decommissioning paces determined by nuclear, radiation and environmental safety, are estimated today at 13-15 NSs per year at the most. 

What are the priorities in the field of practice These are again greater responsibility in each direction, appointment of scientific leaders and people responsible for every line of studies. This requires a funding increase, especially in the fields connected with decommissioning of nuclear submarines and facilities. Finally, there is accountability. 

The decommissioning project implementation will require huge funding and Kazakhstan is open to accept foreign contribution and technical assistance. 

Regulations should require, as a condition for granting an authorization for select facilities and/or sources, that adequate funds be made available for the timely decommissioning of facihties and the management of radioactive waste and/or spent radiation sources, including disposal. The arrangements for financial assurance proposed by an applicant should be incorporated as a condition of the authorization. 

AR429 1.159 Assuring the avaUabihty of funds for decommissioning nuclear reactors (Draft DG-1003... 

In the White Paper, HMG also announced the anangements by which private nuclear licensees should set up funding to meet their long-term decommissioning liabilities. 

The UK Government is continuing to fund the PFR decommissioning and the completion of PFR fuel reprocessing. 

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