Catalyzing Commitments to Advanced Nuclear Energy Projects Author:

o Price-adjustment mechanisms to share the impact of unanticipated cost increases.3 o The most impactful private-sector action would be for offtakers to make capital commitments to provide a backstop for project completion cost (in exchange for a range of possible compensation, and with rights to review estimates and provisions to align incentives) and improve access to financing. [...] In serial development of multiple projects, developers have highlighted the potential value of preparation and specific practices to capture value from the lessons learned in the first projects.20 These practices include scheduling a gap between the first project in the sequence and later projects to provide time to 16 See, Department of Energy, “Pathways to Commercial Liftoff: Advanced Nuclear,”. [...] Potential Actions to Accelerate Commitments Although project sponsors are taking steps to address cost uncertainty and offset FOAK costs with the benefits of NOAK projects, the potential risk of cost overruns continues to pose a challenge to the next set of commitments to nuclear energy projects. [...] Offtakers may need to take on more project risk to achieve their growth objectives To the extent some potential offtakers recognize that accelerating the buildout of clean, firm energy is a fundamental need to enable their future growth, and that nuclear energy is an essential part of that energy supply, they may need to take on more risk to support future nuclear energy projects. [...] A range of actions by potential private sector offtakers, the Department of Energy, and legislators could help to further accelerate commitments to advanced nuclear energy projects and pave the way for advanced nuclear energy to play a key role in the energy transition.