ORNL/TM-10071/R2 Dist. Category UC-520 ORNL/TM—10071/R2 > Engineering Technology Division ^^^^ 010221 COST ESTIMATE GUIDELINES FOR ADVANCED NUCLEAR POWER TECHNOLOGIES J. G. Delene C. R. Hudson II Date Published: March 1990 This document contains information of a preliminary nature. It is subject to revision or correction and therefore does not represent a final report. Prepared by the OAK RIDGE NATIONAL LABORATORY Oak Ridge, Tennessee 37831 operated by MARTIN MARIETTA ENERGY SYSTEMS, INC. for the U.S. DEPARTMENT OF ENERGY under Contract No. DE-AC05-84OR21400 This docwmem is •ABLE MASTER : !^ Tyate:j2/2 (/^^Z___ DISTRIBUTION OF THIS DOCUMENT IS UNLIMITED DISCLAIMER This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency Thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. \ Hi CONTENTS Page ABSTRACT 1 1. INTRODUCTION 1 2. BASE CONSTRUCTION CAPITAL COST GROUND RULES 8 2.1 Cost Categories 8 2.2 General Ground Rules 9 2.3 Specific Cost-Estimating Assumptions 11 2.4 EEDB Cost Account Definitions 18 2.4.1 Direct cost accounts 18 2.4.2 Indirect cost accounts 19 2.5 Base Construction Capital Cost Documentation 23 2.5.1 Cost reports 24 2.5.2 Plant bulk, commodities data 24 2.5.3 Plant labor requirements data 27 2.6 Development and Prototype Cost Documentation 27 3. TOTAL CAPITAL COST 32 3.1 Contingency 32 3.2 Cash Flow 33 3.3 Escalation 33 3.4 Interest During Construction 34 3.5 Total Capital Cost 36 4. BUSBAR GENERATION COST 39 4.1 General Assumptions and Methodology 39 4.2 Capital Cost 42 4.3 O&M Costs 44 4.4 Fuel Costs 49 4.5 Decommissioning 52 4.6 Total Busbar Cost 54 5. ALTERNATIVE POWER PLANT COST ESTIMATES 55 5.1 Capital Cost 56 5.2 O&M Cost 58 5.3 Fuel Costs 58 5.4 Decommissioning 59 5.5 Total Busbar Cost 59 IV Page 5.6 Example Calculations 60 5.6.1 Cost Calculation for a 550-MWe pulverized coal (PC) plant 60 5.6.2 Cost Calculation for a three unit, 550 MWe/unit, 1650-MWe fluidized bed combustion (FBC) coal- fired plant 64 5.6.3 Cost Calculation for an 1100-MWe PWR (better experience) plant 67 REFERENCES 71 ABBREVIATIONS AND ACRONYMS 72 LIST OF SYMBOLS 74 APPENDIX A. EEDB CODE OF ACCOUNTS FOR LIQUID-METAL REACTOR (LMR) CONCEPT 77 APPENDIX B. EEDB CODE OF ACCOUNTS FOR HIGH-TEMPERATURE GAS-COOLED REACTOR (HTGR) CONCEPT 103 APPENDIX C. EEDB CODE OF ACCOUNTS FOR AN ADVANCED LIGHT WATER REACTOR (ALWR) CONCEPT Ill APPENDIX D. LISTING OF SAMPLE FOAK TASKS 135 APPENDIX E. SITE-RELATED ENGINEERING AND MANAGEMENT TASKS 137 APPENDIX F. EEDB PROGRAM DESCRIPTION OF A STANDARD HYPOTHETICAL MIDDLETOWN SITE FOR NUCLEAR POWER PLANTS 139 APPENDIX G. CONVERSION FROM NOMINAL TO CONSTANT DOLLARS 147 COST ESTIMATE GUIDELINES FOR ADVANCED NUCLEAR POWER TECHNOLOGIES ABSTRACT I To make comparative assessments of competing technolo gies, consistent ground rules must be applied when developing cost estimates. This document provides a uniform set of assumptions, ground rules, and requirements that can be used in developing cost estimates for advanced nuclear power tech nologies. 1. INTRODUCTION Several advanced power plant concepts are currently under develop ment. These include Advanced Liquid Metal Reactors (ALMR), Advanced Light Water Reactors (ALWR), and Modular High Temperature Gas Cooled Reactors (MHTGR). One measure of the attractiveness of a new concept is its cost. Invariably, the cost of a new type of power plant will be compared with other alternative forms of electrical generation. This report provides a common starting point, whereby the cost estimates for the various power plants to be considered are developed with common assumptions and ground rules. Comparisons can then be made on a con sistent basis. This report is designed to provide a framework for the preparation and reporting of costs. The cost estimates will consist of the over night construction cost, the total plant capital cost, and the produc tion or busbar generation cost. While providing a generic set of assumptions and ground rules, this document does not provide scenarios or assumptions specific to the individual concepts, nor does it provide reporting requirements. Thus, these guidelines may be used in a variety of studies when supplemented with concept specific data. Power plant capital costs in this report will be developed using the U.S. Department of Energy (DOE) Energy Economic Data Base^ (EEDB) Program Code of Accounts that has evolved from the NUS Corporation Code of Accounts through modification and expansion over nearly two decades. 2 The utilization of the EEDB Code of Accounts will allow for comparisons between the advanced concept cost estimate and costs of other plants reported in the EEDB format. The levelized busbar generation costs will be developed using the methodology presented in the U.S. DOE Nuclear Energy Cost Data Base (NECDB).' All costs will be developed using the methods and tax rates applicable in the Tax Reform Act of 1986. These ground rules will be updated as necessary to provide and maintain a common and consistent cost basis that is compatible with the EEDB Program. The DOE Office of Nuclear Energy (NE) is responsible for approving changes to this document. Requested changes should be made in writing to Department of Energy Assistant Secretary for Nuclear Energy, Office of Advanced Reactor Programs, Washington, D.C. 20545. The following definition of terms will provide the background necessary for understanding and interpreting the present guidelines. Base construction cost. The base construction cost is the plant capital cost for the direct and indirect costs only. This cost is lower than the total capital cost because cost elements such as contingency, interest, and escalation are NOT included. The specific cost items omitted are listed in Table 1.1. The direct costs are those costs directly associated on an item-by- item basis with the equipment and structures that comprise the complete power plant. The indirect costs are expenses for services applicable to Table 1.1. Preferential and discretionary items excluded from base construction costs Allowance for funds used during construction Escalation Contingency Owner's discretionary items Switchyard and transmission costs Generator step-up transformer Initial fuel supply 3 all portions of the physical plant, such as Architect Engineer (AE) home office engineering and design, AE field office engineering and services, construction management, and taxes. Reactor manufacturer (ElM) home office engineering and services are also included in a separate account (except as noted in Sect. 2.3, Item 16). Building block. A building block is a combination of one or more reactor modules and associated electrical generation equipment and structures that represent the smallest unit for commercial electrical generation. Building blocks may be duplicated for capacity expansion. Busbar costs. Total levelized power generation costs for elec tricity produced by a power plant. It includes costs associated with the capital investment, operation and maintenance of the power plant, fuel costs, and the cost of decommissioning the plant at the end of life. Common plant facilities. Common plant facilities are those sys tems, structures, and components that are required to support the opera tion of a first building block at a new plant site and include such facilities as administration building, provisions for refueling, general warehouse, water supply, general fire systems, etc. These common plant facilities may be sized sufficiently so as to be shared by other build ing blocks added subsequently. Constant dollars. Constant dollar cost is defined as the cost for an item measured in dollars that have a general purchasing power as of some reference date. As inflation is generally associated with the ero sion of the general purchasing power of the dollar, constant dollar analysis factors out inflation. Escalation rate. The rate of change of a cost. This rate can be greater or less than the general inflation rate as measured by the Gross National Product Implicit Price Deflator. Equipment. Generally, equipment includes all manufactured items ordered by flM or AE. Such items may be procured on a design and build contract from qualified vendors, wherein design responsibility belongs to the seller (vendor) or is maintained by the buyer (RM or AE) on a "build-to-print" basis. All piping 2-1/2-in. and larger nominal pipe 4 size is an equipment item with the exception of galvanized pipe; storm, roof, and floor drainage; and sanitary piping, which are site material. Equipment module. An equipment module is a skid-mounted, factory- assembled package which includes (but is not limited to) equipment, piping, instrumentation, controls, structural components, and electrical items. Module types include Box Modules, Equipment Modules, Structural Modules, Connection Modules, Electrical Modules, Control System Modules and Dressed Equipment Modules. These Modules are applicable to both the Nuclear Island and Balance of Plant. Factory (manufacturing facility) FOAK costs. These first of a kind (FOAK) costs include the development of manufacturing specifications, factory equipment, facilities, startup, tooling and setup of factories that are used for manufacturing specific equipment for the concept. These facilities will be used for all plants including Nth-of-a- kind (NOAK) plants, and these costs may be minimized if existing facilities are used for module production. These may not be either dedicated or even primary use application, if say a shipyard or other factory which builds modules for other industries is used. First commercial plant costs. The first commercial plant is the first plant of that type that is sold to an entity for the purpose of commercial production of electricity. The costs include all engineering, equipment, construction, testing, tooling, project management, and any other costs that are repetitive in nature. Any costs unique to the first commerical plant which will not be incurred for subsequent plants of the identical design will be identified and broken out separately. The learning for this first plant will reflect its first commercial plant status and not be the average over a larger number of plants. FOAK plant costs. First-of-a-kind costs necessary to put a first commercial plant in place which will not be reproduced for subsequent plants. Such costs include R&D, standard plant design, NRC certifica tion of standard design and any prototype and other such FOAK costs. Force account. Force account involves the direct hiring and super vision of craftsmen to perform a construction activity by a prime con tractor as opposed to the prime contractor hiring a subcontractor to perform these functions.