Published on: May 21, 2025 / Updated on: May 21, 2025 – Author: Konrad Wolfenstein
Electricity generation costs compared: Is nuclear power really more expensive than renewable energies? – Image: Xpert.Digital
Photovoltaics: Why ground-mounted systems are the future of energy
Electricity cost comparison: Photovoltaics clearly beats nuclear energy
Ground-mounted photovoltaic systems are indeed among the most cost-effective forms of electricity generation in Germany, while nuclear energy is significantly more expensive. This is confirmed by recent studies.
Current electricity generation costs at a glance
According to current analyses by the Fraunhofer Institute for Solar Energy Systems (ISE), the levelized cost of electricity is as follows:
- Ground-mounted photovoltaic systems: 4.1 to 6.9 cents/kWh
- Onshore wind energy: 4.3 to 9.2 cents/kWh
- Lignite-fired power plants: 15.1 to 25.7 cents/kWh
- Coal-fired power plants: 17.3 to 29.3 cents/kWh
- Gas-fired power plants (combined cycle gas turbine): 10.9 to 18.1 cents/kWh
- Nuclear power plants (new construction): 13.6 to 49.0 cents/kWh
Renewable energies, especially photovoltaics and wind power, are currently the most cost-effective electricity generation technologies in Germany.
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Why is nuclear power more expensive than often portrayed?
1. High investment and construction costs
Investment costs for nuclear power plants account for approximately 56-72% of total costs. These costs have risen steadily in recent years, while the costs for renewable energies have fallen sharply. In France, EU Internal Market Commissioner Thierry Breton estimated that investments of €50 billion would be needed for existing nuclear power plants alone by 2030, and as much as €500 billion for the construction of new reactors.
2. Long construction times and financing costs
Nuclear power plants typically have very long construction times, often more than 10 years. These long construction times lead to high financing costs due to interest payments, which are factored into the overall costs. For renewable energy sources, construction times are significantly shorter, which reduces financing costs.
3. Operating costs and maintenance
Although fuel costs for nuclear power plants are relatively low, the costs for maintenance, upkeep, and safety measures are considerable, accounting for approximately 10-17% of the total costs.
4. External costs and dismantling
The values given for the levelized cost of electricity (LCOE) for nuclear power often do not include all external costs. The costs for decommissioning nuclear power plants and the final disposal of radioactive waste are difficult to calculate and are frequently underestimated or only partially considered.
5. Economic Development
While the levelized cost of electricity (LCOE) for nuclear power has increased by 33 percent over the past 12 years, the cost of solar energy has decreased by almost 90 percent between 2010 and 2021. This opposing trend further exacerbates the cost difference.
6. Government funding and subsidies
An important aspect that is often overlooked: Historically, nuclear power was only economically viable thanks to massive government subsidies. The true costs of nuclear energy were and are therefore not fully reflected in electricity prices.
Cheap electricity from 3 cents: The vision of photovoltaics
According to Fraunhofer ISE, the levelized cost of electricity (LCOE) for ground-mounted photovoltaic (PV) systems could fall further to between 3.1 and 5.0 cents per kWh by 2045. For small rooftop PV systems, costs between 4.9 and 10.4 cents per kWh are projected. This ongoing cost reduction further strengthens the economic advantage of renewable energies over conventional power plants and nuclear energy.
System integration and flexibility
In an energy system with a high share of renewable energies, nuclear power plants would be at an economic disadvantage because they are difficult to regulate and flexible integration with renewable energies is technically limited. This lack of flexibility leads to additional system costs that are not included in the pure levelized cost of electricity.
The future of energy: Cost advantages of wind and solar energy
The claim that nuclear power is cheaper than renewable energies is not supported by current studies. On the contrary, photovoltaics and wind power are currently the most cost-effective electricity generation technologies in Germany, with electricity generation costs significantly lower than those of coal, gas, and nuclear power. The economic advantages of renewable energies are likely to increase even further in the future due to further cost reductions.
Nuclear power in media portrayals: Between myth and reality
The perception of nuclear power as a supposedly inexpensive energy source is a phenomenon deeply rooted in historical narratives, economic interests, and strategic communication. Although current studies clearly demonstrate that renewable energies such as photovoltaics and wind power are significantly more cost-efficient, the image of "cheap nuclear power" persists. The reasons for this are manifold and range from lobby-driven rhetoric to the complexity of energy economic models.
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Historical influence and political rhetoric surrounding “cheap” nuclear power
Early subsidies and government funding
Since the 1950s, nuclear energy in Germany has been massively subsidized. By 2010, government subsidies had totaled at least €210 billion (nominal), which, adjusted for inflation, corresponds to approximately €287 billion. These financial injections enabled low electricity prices, which, however, did not reflect the true costs of nuclear power. Politicians and the media seized upon this narrative to frame nuclear energy as an "economic necessity"—for example, through statements like that made by CDU politician Fuchs in 2011: "Everyone must be aware that electricity prices will rise if the nuclear phase-out is accelerated."
Targeted PR strategies of the nuclear lobby
Documents such as the PR agency PRGS's "Communication Concept for Nuclear Energy" (2008) reveal systematic efforts to influence public opinion. The core of the strategy was to link nuclear power with climate protection and security of supply in order to feign a united front with renewable energies. The media were deliberately supplied with pro-nuclear "experts," while critical voices were marginalized. This is evident in articles from the Frankfurter Allgemeine Zeitung and Wirtschaftswoche, which repeatedly advocated pro-nuclear positions.
Economic miscalculations and market mechanisms
Focus on variable costs
A key trick is to only consider the variable costs of existing nuclear power plants, which are indeed low (€20–25/MWh). However, this view ignores:
- Fixed costs for new construction: Up to 49 cents/kWh for new nuclear power plants
- Decommissioning and final storage: An estimated 500 billion euros for the disposal of Germany's nuclear waste
- External costs: Environmental and health consequences not included in the electricity price
Merit order effect and price dampening
In a merit order system, nuclear power plants with low marginal costs put short-term pressure on electricity prices because they are used before more expensive gas-fired power plants. This effect has often been considered in isolation in the media, without mentioning the systemic costs – such as the necessary grid expansion or reserve power plants for fluctuating renewable energy sources.
Media distortions and selective reporting
Seasonal price effects
For example, in 2023, the Bavarian Broadcasting Corporation (Bayerischer Rundfunk) suggested that the nuclear phase-out had lowered electricity prices. In reality, however, the price reductions were mainly due to seasonal factors such as increased solar power production and decreased gas demand. Both opponents and proponents of nuclear power exploit such short-term effects for their own narratives.
Neglecting the realities of subsidies
While the EEG surcharge for renewables (2 cents/kWh) was discussed transparently, nuclear subsidies often went unmentioned. Tax breaks for nuclear power plant operators alone amounted to 4.3 cents/kWh – more than double the EEG subsidy.
Psychological factors and public perception
Cognitive dissonance and status quo bias
For over 60 years, nuclear power shaped the energy supply. This created a mental anchoring that is reinforced by confirmation bias: media reports portraying nuclear power as "cheap" are more likely to be believed if they support existing beliefs.
Complexity reduction in reporting
Energy-related relationships such as levelized cost of electricity (LCOE) versus system costs are rarely differentiated. While renewables are presented with their full costs (grid integration, storage), nuclear power often appears in simplified representations as a "base load" without any context regarding hidden subsidies.
An expensive narrative with a long shadow
The media's portrayal of nuclear power as cost-effective is no accident, but rather the result of historical decisions, targeted lobbying, and economic half-truths. While the levelized cost of electricity (LCOE) from new nuclear power plants (13.6–49 cents/kWh) has long since surpassed that of wind (4.3–9.2 cents/kWh) and solar (4.1–14.4 cents/kWh), outdated narratives dominate the debate. The real question is not why nuclear power is considered cheap, but why, despite clear data, it is so difficult to correct this image. Perhaps the PRGS strategy paper offers an answer: "Success is when nuclear power is perceived as an indispensable partner to renewables – even if this is factually untenable."
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