What needs to be considered in connection with prime costs?

The production costs for the Gösgen and Leibstadt nuclear power plants are reported using two values: the actual costs and the normalized costs. The annual fluctuation in the value of the decommissioning and waste disposal funds influences the annual and thus also the production costs per kilowatt hour. For this reason, normalized annual and production costs are calculated in addition to the actual costs in order to improve comparability and estimate the operating result of a nuclear power plant. It should be noted that the investments made by nuclear power plants can lead to minor fluctuations in production costs. Another special feature is the fuel costs. In the case of nuclear energy, the pure uranium costs only account for around five percent of the production costs.

Economic viability

Swiss nuclear power plants

Economically viable energy supply

Swiss nuclear power plants contribute to the country's security of supply as long as they can be operated safely and economically. The principle that the energy supply should be economically viable is enshrined in the Federal Constitution.

The Energy Act cites cost transparency and competitiveness as the basis for an economically viable energy supply. In addition to the state, the owners of the nuclear power plants, a good 80 per cent of which are publicly owned, also have this interest.

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Low overall, environmental and system costs

The economic viability of nuclear energy can only be objectively assessed by taking a holistic view of the entire system of electricity generation. This analysis takes into account not only the production costs but also the system costs (costs relating to grid infrastructure and stabilisation, as well as storage costs) and the environmental costs (emissions, resources, etc.).

Nuclear energy has low environmental costs: it requires little land, is virtually CO2-free in operation and consumes very few resources. The system costs are also very low, as nuclear power does not require any backup or storage systems. From this perspective, nuclear energy scores highly with very low overall costs.

Low production costs benefit the Swiss economy

In accordance with the "polluter pays" principle enshrined in law, the production costs include all costs associated with nuclear energy (capital and operating costs). For years, they have fluctuated between 4 and 7 centimes per kilowatt hour. Swiss nuclear power plants therefore produce electricity that is not only predictable, but also affordable and stable in price. This electricity is particularly valuable during the winter shortfall, when Switzerland is dependent on imports.

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Q&A

What is included in the production costs?

The production costs of electricity from a Swiss nuclear power plant include:

All expenses for the operation of the nuclear power plants,
All insurance,
All costs for the decommissioning of the facilities and the interim storage and final disposal of all waste (including the timely provision and operation of a deep geological repository until its final closure),
Around 90 per cent of the expenses of the National Cooperative for the Disposal of Radioactive Waste (Nagra) and the costs of the necessary preparatory work (e.g. research and geological investigations);
Around 95 per cent of the expenses of the Swiss Federal Nuclear Safety Inspectorate (ENSI),
The expenses incurred by the Swiss Federal Office of Energy (SFOE) for Swiss nuclear power plants,
The costs of distributing iodine tablets and of establishing and operating the monitoring networks that track emissions from nuclear power plants into the air and water,
Nuclear power plant operators bear all the costs of nuclear energy.

What should be kept in mind regarding production costs?

The production costs for the Gösgen and Leibstadt nuclear power plants are reported using two values: the actual costs and the normalised costs. The year-on-year fluctuation in the value of the decommissioning and waste disposal funds influences the annual costs and, consequently, the production costs per kilowatt hour. For this reason, normalised annual and production costs are also calculated in addition to the effective costs in order to improve comparability and estimate a nuclear power plant's operating result. It should be noted that the investments made by nuclear power plants can lead to minor fluctuations in production costs. The fuel costs are another particular factor. In the case of nuclear energy, the pure uranium costs only account for around five per cent of the total production costs.