Costing Methods and Funding Schemes for Radioactive Waste Disposal Programmes

By IAEA

Reliable methods for estimating the cost of a radioactive waste disposal programme are crucial to ensure that the necessary funding for completing the disposal programme is available. Estimating the cost for disposal is, however, a challenging and complex task. Disposal programmes themselves are complex and long term undertakings, and conditions can be expected to change significantly over the time span during which a disposal programme is developed and implemented. This publication provides Member States with information on developing cost estimates for a disposal programme and establishing funding mechanisms. It will help readers in becoming informed clients by familiarizing themselves with the approaches and complexities in cost estimates and funding mechanisms for disposal. The publication is applicable to all waste categories and both near surface and geological disposal. It contains relevant examples and case studies from national programmes. The cost figures are intended to give an indication of the possible cost of certain parts or aspects of the disposal programme rather than to compare different disposal programmes’ costs.

• Language: English
• Publisher: International Atomic Energy Agency
• Release date: Nov 11, 2020
• ISBN: 9789201118202

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COSTING METHODS AND

FUNDING SCHEMES FOR

RADIOACTIVE WASTE DISPOSAL

PROGRAMMES

IAEA NUCLEAR ENERGY SERIES No. NW-T-1.25

COSTING METHODS AND

FUNDING SCHEMES FOR

RADIOACTIVE WASTE DISPOSAL

PROGRAMMES

INTERNATIONAL ATOMIC ENERGY AGENCY

VIENNA, 2020

COPYRIGHT NOTICE

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© IAEA, 2020

Printed by the IAEA in Austria

November 2020

STI/PUB/1900

IAEA Library Cataloguing in Publication Data

Names: International Atomic Energy Agency.

Title: Costing methods and funding schemes for radioactive waste disposal programmes / International Atomic Energy Agency.

Description: Vienna : International Atomic Energy Agency, 2020. | Series: IAEA nuclear energy series, ISSN 1995–7807 ; no. NW-T-1.25 | Includes bibliographical references.

Identifiers: IAEAL 20-01342 | ISBN 978–92–0–108819–2 ) | (paperback : alk. paper)ISBN 978–92–0–111720–5 (pdf) | ISBN 978–92–0–111820–2 (epub) | ISBN 978–92–0–111920–9

Subjects: Radioactive waste disposal. | Cost accounting. | Cost estimates | Risk management

Classification: UDC | STI/PUB/1900

FOREWORD

The IAEAʼs statutory role is to seek to accelerate and enlarge the contribution of atomic energy to peace, health and prosperity throughout the world. Among other functions, the Agency is authorized to foster the exchange of scientific and technical information on peaceful uses of atomic energy. One way this is achieved is through a range of technical publications including the IAEA Nuclear Energy Series.

The IAEA Nuclear Energy Series comprises publications designed to further the use of nuclear technologies in support of sustainable development, to advance nuclear science and technology, catalyse innovation and build capacity to support the existing and expanded use of nuclear power and nuclear science applications. The publications include information covering all policy, technological and management aspects of the definition and implementation of activities involving the peaceful use of nuclear technology.

The IAEA safety standards establish fundamental principles, requirements and recommendations to ensure nuclear safety and serve as a global reference for protecting people and the environment from harmful effects of ionizing radiation.

When IAEA Nuclear Energy Series publications address safety, it is ensured that the IAEA safety standards are referred to as the current boundary conditions for the application of nuclear technology.

This publication provides Member States with information on how to develop cost estimates for a disposal programme and on how to establish adequate and reliable funding mechanisms. The information is intended to be practical, enabling Member States to set up estimates and funding schemes for their disposal programmes, and it is applicable to all waste categories and both near surface and geological disposal.

Although this publication is aimed at those involved or interested in the cost of a disposal programme, it will be of interest primarily to waste management organizations which implement a disposal programme and which need to understand the associated financial liabilities and need to establish schemes to fund the programme.

The publication contains examples and case studies from national programmes, which illustrate applied cost estimation and funding mechanisms. The figures in US dollars are to give an indication of the possible cost of aspects of the disposal programme and are not provided to compare the cost of different disposal programmes.

The IAEA is grateful to all who contributed to the drafting and review of this publication. The IAEA officers responsible for this publication were P. Van Marcke and S. Mayer of the Division of Nuclear Fuel Cycle and Waste Technology.

EDITORIAL NOTE

This publication has been edited by the editorial staff of the IAEA to the extent considered necessary for the reader’s assistance. It does not address questions of responsibility, legal or otherwise, for acts or omissions on the part of any person.

Although great care has been taken to maintain the accuracy of information contained in this publication, neither the IAEA nor its Member States assume any responsibility for consequences which may arise from its use.

Guidance provided here, describing good practices, represents expert opinion but does not constitute recommendations made on the basis of a consensus of Member States.

The use of particular designations of countries or territories does not imply any judgement by the publisher, the IAEA, as to the legal status of such countries or territories, of their authorities and institutions or of the delimitation of their boundaries.

The mention of names of specific companies or products (whether or not indicated as registered) does not imply any intention to infringe proprietary rights, nor should it be construed as an endorsement or recommendation on the part of the IAEA.

The IAEA has no responsibility for the persistence or accuracy of URLs for external or third party Internet web sites referred to in this book and does not guarantee that any content on such web sites is, or will remain, accurate or appropriate.

The authoritative version of this publication is the hard copy issued at the same time and available as pdf on www.iaea.org/publications. To create this version for e-readers, certain changes have been made, including a the movement of some figures and tables.

CONTENTS

1. introduction

1.1. Background

1.2. Objective

1.3. Scope

1.4. Structure

2. WASTE MANAGEMENT POLICY, STRATEGIES AND OPTIONS

2.1. Policy

2.2. Strategies

2.3. Waste disposal options

3. COST ESTIMATE METHOD

4. WORK BREAKDOWN STRUCTURE OF THE DISPOSAL PROGRAMME

4.1. Disposal programme management

4.2. Stakeholder involvement

4.3. Disposal system development

4.4. Disposal implementation

5. COST ASSESSMENT OF THE WORK BREAKDOWN STRUCTURE

5.1. Cost database

5.2. Data sources and cost examples of a waste disposal programme

6. RISKS AND UNCERTAINTIES

6.1. Identification of risks and uncertainties

6.2. Sensitivity and scenario analysis

6.3. Risk management

6.4. Provisions

7. FUNDING THE DISPOSAL PROGRAMME

7.1. Funding sources and mechanisms

7.2. Contribution plan

7.3. Fund management

8. CONCLUSIONS

REFERENCES

Annex: PURCHASING POWE R PARITIES

ABBREVIATIONS

CONTRIBUTORS TO DRAFTING AND REVIEW

STRUCTURE OF THE IAEA NUCLEAR ENERGY SERIES

1. introduction

1.1. Background

Nuclear science and technologies are used in many applications worldwide. Electricity production in nuclear power plants is probably the best known example of the use of nuclear energy. However, nuclear applications can be found in a wide variety of sectors, such as health, food and agriculture, the environment, water resources and industry. These applications can bring great benefits to countries and their populations.

The use of nuclear science and technologies, however, also entails responsibilities which stretch beyond the safe operation of those nuclear technologies. Closed nuclear facilities need to be decommissioned, sites where radioactive ores, such as uranium, were mined need to be remediated and the waste generated by nuclear applications needs to be taken care of. As radioactive waste remains hazardous for tens to hundreds of thousands of years, its management needs to protect human health and the environment both now and in the future, without imposing an undue burden on future generations [1]. This objective is reflected in the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management (Joint Convention) [2].

States thus need to establish policies and strategies for the safe management of radioactive waste and spent fuel declared as waste. The main elements of a waste management policy and strategy are set out in Ref. [3].

The last step of the long term management of radioactive waste is disposal. Disposal in near surface repositories¹ is the generally accepted solution for very low level waste (VLLW) and low level waste (LLW). Intermediate level waste (ILW) and high level waste (HLW), as well as spent fuel declared as waste, require disposal in an underground repository.

A fundamental prerequisite for implementing a sustainable waste disposal programme is the provision of financial resources to cover the costs of the programme. Insufficient financial resources can jeopardize the implementation of the disposal programme (see Section 2.1.4). Financial resources and