Building and Upgrading of Nuclear Power Plant Projects: Evaluation of Engineering, Procurement, Construction (EPC) and Regulated Asset Base (RAB) Models

Document Type : Research Paper

Author

Department of International Trade Law & Intellectual Property and Cyberspace Law Department, Faculty of Law, Shahid Beheshti University, Tehran

10.22059/jcl.2023.349138.634423

Abstract

Nuclear power plants are among infrastructure projects and provide public services that play a vital role for communities in the path of sustainable development. Since building and upgrading nuclear power plants has many technical and financial challenges, it is very important to select and use suitable contract models that can solve the challenges in the construction and operation stages of the mentioned power plants. Uzbekistan and the United Kingdom are looking to build, develop, and upgrade nuclear power plants in their territories, respectively, focusing on the engineering, procurement, construction (EPC), and regulated asset base model (RAB) models. Now the question is, which of the existing contract mechanisms in the field of construction and upgrading of nuclear power plants has a better performance? As a hypothesis, the technical complexities and the high cost of building and upgrading nuclear infrastructure projects require the use of appropriate contractual mechanisms such as the regulated asset base (RAB) model that could encourage the capable private sector as well as enable the advancement of several public service projects by the public sector in tandem. However, the paper aims to evaluate the aforementioned contractual models by relying on the descriptive-analytical study method, so as to draw the framework of a suitable contractual mechanism in the field of the aforementioned projects.

Keywords

References

  1. Abu Alizadeh Behbahani, Rouzbeh (2014). Contractual methods of project implementation, claim, control, Project Green Book. Tehran: Fadak Isatis Publications, first edition (In Persian).
  2. Bailey, J. (2014). Construction Law, Taylor & Francis.
  3. Energy, G. B. D. o. & Change (2010). Electricity Market Reform: consultation document, Stationery Office.
  4. "Estimating comparable costs of a nuclear regulated asset base versus a contract for difference financing model" (2019). National infrastructure project. It is available at: https://www.nic.org.uk/publications/establishing-comparable-costs-of-a-nuclear-regulated-asset-base-versus-a-contract-for-difference-financing-model/ (Accessed: June 28, 2022)
  5. Forsdick, Sam. (2019). How do you solve a problem like Wylfa Newydd? Exploring the regulated asset base nuclear financing model. NS ENERGY. It is available at: https://www.nsenergybusiness.com/features/regulated-asset-base-model-nuclear Accessed: June 28, 2022)
  6. Gammons, Sean. Anstey, George., & Druce, Richard (2020). "A RAB Model for New Nuclear Power Plants: The Economics of Investment Incentives." NERA. 1-10. It is available at: https://www.nera.com/publications/archive/2020/a-rab-model-for-new-nuclear-power-plants--the-economics-of-inves.html (Accessed: June 28, 2022)
  7. Hamidpour Razian, Rasul and Nouri, Mohammad (2017). Examining the nature of contracts and EPC contracting. Tehran: Jungle Publications, Javadane, first edition (In Persian).
  8. https://es.catapult.org.uk/consultations/regulated-asset-base-rab-model-for-nuclear (Accessed: June 27, 2022)
  9. ITF Round Tables Better Regulation of Public-Private Partnerships for Transport Infrastructure (2013). OECD Publishing.
  10. Jiang, H. (2017). Proceedings of The 20th Pacific Basin Nuclear Conference: Volume 2, Springer Singapore.
  11. Mastin, J.M., Nelson, E.L., Robey, R.G., & Smith, C.H.L.L.P. (2019). Smith, Currie & Hancock's Common Sense Construction Law: A Practical Guide for the Construction Professional: Wiley.
  12. Newbery, D., Pollitt, M., Reiner, D., & Taylor, S. (2019). Financing low-carbon generation in the UK: The hybrid RAB model.
  13. Norouzi, Mohammad (2014). Fulfillment of promise in EPC contract or design and procurement and construction, Judgment Journal, 14 (80): pp. 121-143. https://doi.org/10.22034/ijrj.2019.546213 (In Persian).
  14. Norouzi, Mohammad; Qanawati, Jalil and Seyed Ahmadi Sajadi, Seyed Ali (2017). Legal-economic analysis of design, procurement and construction contracts with a jurisprudential approach, Journal of Islamic Jurisprudence and Law Research, 15 (54): pp. 170-149. [in Persian]
  15. RAB MODEL FOR NUCLEAR, consultation on a RAB model for new nuclear projects (2019). Crown publication.
  16. Rausing, S. (2022). Granta 159: What Do You See?. United Kingdom: Granta Publications.
  17. Roach, Simon (2018). "Consumers could pay for new nuclear power plants years before they are built." It is available at: https://unearthed.greenpeace.org/2018/08/06/new-nuclear-plants-funding-regulated-asset-base/ (Accessed: June 28, 2022)
  18. Sadeghi, Mohsen and Gudarzi, Habib (2009). Examining international design, procurement, and construction contracts with a view to its position in Iran's legal system. Law Quarterly, 38 (2): pp. 173-189 (In Persian).
  19. Sweet, J., et al. (2014). Construction Law for Design Professionals, Construction Managers and Contractors, Cengage Learning.
  20. SZC Financing: The RAB Model (2018). Nuclear Industry Association. It is available at: www.niauk.org › uploads › 2018/11 › Joe-Rippon-EDF.
  21. "UK consults on RAB model to finance nuclear new build" (2019). It is available at: https://www.evershedsutherland.com/global/en/what/articles/index.page?ArticleID=en/Energy/UK_consults_on_RAB_model_to_finfina_nuclear_new_build (Accessed: June 27, 2022)

United Kingdom: Technical Assistance Report-Public Investment Management Assessment: Climate Change Module. (2022). (n.p.): International Monetary

Comparative Law Review
Volume 14, Issue 2
Autumn $ Winter 2023-2024
January 2024
Pages 1001-1022

Files

Share

How to cite

Statistics