Engineering topics
Hansen, Jason K
Publications and source records attributed to Hansen, Jason K.
Quantifying Investment Risk: Analysis of the Purchase Decision of a Nuclear Power Plant (Presentation)
Cost overruns are an ill-fated part of the deployment history of nuclear power plants (NPPs) in the United States, and yet studies increasingly show the important role nuclear technologies must play in decarbonizing the U.S. economy. Paradoxically, then, a key piece of a coherent decarbonization strategy depends on attracting investor action to a purchase where historical cost overruns have been sizable. To address this challenge, this study aims to develop a financial model that quantifies the risk of cost overruns in the decision-making process for purchasing advanced reactor concepts. Using the concept of value at risk (VaR), the model is built to evaluate financial risk nuclear construction with the aim to identify risk mitigation strategies. The objective is to identify strategies to mitigate cost-risk challenges and assess the potential reduction in investor risk exposure. This paper presents the initial development and preliminary verification of the financial risk analysis model. The development of this model involved a comprehensive approach to estimating financial risk over the operating life of NPP that stems from construction uncertainties. By utilizing net present value (NPV) with discounted cash flows, the model captures the complex interconnections of project costs, construction timelines, revenue, and uncertainties. Verifying the model involved testing historical data from previous reactor construction projects against the construction project of Vogtle 3 and 4. This paper’s results present the comparison of the preconstruction cost overrun prediction with the current cost estimates from a nearly complete Vogtle 3 and 4.
Quantifying Investment Risk: Analysis of the Purchase Decision of a Nuclear Power Plant
Cost overruns are an ill-fated part of the deployment history of nuclear power plants (NPPs) in the United States, and yet studies increasingly show the important role nuclear technologies must play in decarbonizing the U.S. economy. Paradoxically, then, a key piece of a coherent decarbonization strategy depends on attracting investor action to a purchase where historical cost overruns have been sizeable. To address this challenge, this study aims to develop a financial model that quantifies risk of cost overruns in the decision-making process for purchasing advanced reactor concepts. Using the concept of Value at Risk (VaR), the model is built to evaluate financial risk nuclear construction with the aim to identify risk mitigation strategies. The objective is to identify strategies to mitigate cost-risk challenges and to assess the potential reduction in investor risk exposure. The paper presents the initial development and preliminary verification of the financial risk analysis model. The development of this model involved a comprehensive approach to estimating financial risk over the operating life of NPP that stems from construction uncertainties. By utilizing net present value (NPV) with discounted cash flows, the model captures the complex interconnections of project costs, construction timelines, revenue, and uncertainties. Verification of the model involved testing historical data from previous reactor construction projects against the construction project of Vogtle 3 and 4. The results of this paper present the comparison of the preconstruction cost overrun prediction with the current cost estimates from a nearly complete Vogtle 3 and 4.
FY23 ION Based Approaches to Address Labor and Knowledge Retention
This study will seek to outline the current problem facing the nuclear industry related to staffing, training, and retaining the necessary workforce for long-term sustainability. A review of published reports and knowledge gained by working in the nuclear energy sector will form the basis for this scoping study. This study will not seek to draw any conclusions regarding the underlying causes of these personnel issues but will attempt to ask questions and help outline future research. The Integrated Operations for Nuclear business model provides opportunities to partially mitigate some of the current issues facing staffing the nuclear fleet. Upgrading safety and control systems from analog to digital as advocated by the Integrated Operations for Nuclear process allows the nuclear facility to compete for the best and brightest candidates and offers them a broad and sustainable career path where their skills can be valued and utilized in the broader industrial sectors. This study will seek to identify the primary reasons that the nuclear industry is facing this labor crisis and seek to identify possible solutions that will be fully evaluated in future research.
Roadmap for IES Modeling and Simulation Activities
Since inception of the DOE-NE Integrated Energy Systems (IES) program, several program and modeling visions and roadmaps have been published. In 2017, the last modeling and simulation capability development plan was published. In 2020, a comprehensive roadmap for the DOE-NE Integrated Energy Systems program has been published. The current report is meant to update the 2017 modeling and simulation capability roadmap and complement the IES overall program roadmap published in 2020. The role of modeling and simulation within IES is to support the demonstration of new coupled integrated technologies along every step of the technology maturation from the strategic analysis of preferred system architecture to preliminary design, to laboratory testing, up to full commercial testing and integration. To achieve this role, modeling and simulation must be able to assess the technical performance and the economic viability of potential IES. Also, modeling and simulation must provide support for experimental evaluations, i.e., support component design and real time operations of experimental demonstration systems. Finally, modeling and simulation can help scale-up experimental systems to the final commercial systems. This report details the current state of the modeling and simulation efforts within IES for the above-mentioned areas, provides a gap analysis and proposes next steps for a time horizon over the next 4 to 5 years.