The study concludes that, besides its technical complexity, the management issues of a nuclear new build are often underestimated and call for professional management of the venture.
In order to provide detailed insights on the approach taken by nuclear new build owners, Arthur D. Little has developed a database which includes over 150 projects currently under construction or planned, totaling 562 new reactor units. Used as a central analysis tool, information areas include general project characteristics, technology, licensing, financing and procurement. Along with in-depth interviews with market participants, the database has enabled Arthur D. Little to identify a number of challenges facing the nuclear industry.
The new build of nuclear power plants is one of the present day’s most complex technical undertakings and frequently puts owners in the position of facing tremendous financial risks. Arthur D. Little’s study reveals that inaccurate understanding of projects risks and inaccurate prioritization of critical activities often lead to significant delays and budget overruns. Issues include:
"New build decision makers often do not manage projects from a holistic perspective and underestimate existing Interdependencies between project activities," comments Dr. Matthias von Bechtolsheim, Director, Energy & Utilities Practice at Arthur D. Little and co-author of the study. "All evidence suggests that the management challenge, as well as the technology challenge, of nuclear new builds must not be underestimated."
An executive summary of the study "Nuclear New Build Unveiled" is available at
About Arthur D. Little
Founded in 1886, Arthur D. Little was the world’s first professional management consulting firm. Arthur D. Little is a global leader in management consultancy, linking strategy, innovation and technology with deep industry knowledge. These last years, Arthur D. Little developed partnerships with more than 70% of Fortune 100 companies. Its teams conceive and implement sustainable, innovative and operational solutions. Arthur D Little is present in over 20 countries with more than 1000 consultants. With its partners Altran Technologies, the firm has access to a network of over 17.000 professionals.
Sue Glanville/Jo Gwaspari