The success of nuclear power renaissance hinges on addressing one critical challenge: cost. Historically, nuclear power has been plagued by a “cost escalation curse,” with overnight construction costs rising dramatically in countries like the United States and France from the 1970s to the 1990s. In contrast, China’s nuclear sector presents a striking counterexample, achieving declining costs alongside substantially capacity expansion.
In this Energy Policy Seminar, Shangwei Liu, Postdoctoral Research Fellow with the Belfer Center's Environment and Natural Resources Program and Science, Technology, and Public Policy Program, will share findings from a forthcoming paper to explain how China has been able to reduce its construction costs - and what other countries can learn.
Q&A to follow. Buffet-style lunch provided.
Registration: RSVP required. A Harvard University ID is required for in-person attendance; all are welcome to attend via Zoom.
Recording: The seminar will NOT be recorded.
Accessibility: To request accommodations or who have questions about access, please contact Liz Hanlon (ehanlon@hks.harvard.edu) in advance of the session.
Co-Sponsors: Mossavar-Rahmani Center for Business and Government, Harvard University Center for the Environment, Salata Institute for Climate and Sustainability
Abstract
The success of nuclear power renaissance hinges on addressing one critical challenge: cost. Historically, nuclear power has been plagued by a “cost escalation curse,” with overnight construction costs rising dramatically in countries like the United States and France from the 1970s to the 1990s. In contrast, China’s nuclear sector presents a striking counterexample, achieving declining costs alongside substantially capacity expansion. Using plant-level data, we reveal a sustained reduction in the overnight construction costs of Chinese nuclear projects, diverging sharply from the upward trends observed in western countries. Commonly cited cost-reduction mechanisms fall short of explaining this trend. Instead, we identify indigenization—the use of domestically produced equipment and labor—as a critical driver. Our findings highlight the importance of stable regulatory frameworks, strategic indigenization, and international technology collaboration for cost mitigation and scaling nuclear power to meet global climate goals.
