Why is the unit power-generation cost in a nuclear power plant typically lower than in a coal-based thermal plant?

Introduction / Context:
Levelized cost of electricity (LCOE) reflects multiple contributors: capital, fuel, operations and maintenance (O&M), and decommissioning. For nuclear plants, fuel contributes a relatively small fraction of total generation cost compared with fossil plants, even though nuclear has high capital and stringent O&M requirements. This question focuses on the principal recurring cost advantage.

Given Data / Assumptions:

• Comparing steady-state generation costs, not total overnight capital cost.
• Typical modern coal plant efficiencies around the mid-30% range; nuclear thermal efficiencies often slightly lower.
• Fuel-cycle costs include mining, conversion, enrichment, and fabrication for nuclear.

Concept / Approach:
The energy density of nuclear fuel is orders of magnitude higher than that of coal. Consequently, the quantity of fuel required per kWh is minuscule, making the fuel cost per unit energy comparatively low even after accounting for the entire fuel cycle. By contrast, coal plants consume large tonnages daily, making fuel a dominant operating expense. While nuclear plants do not have higher thermal efficiency than coal, their fuel cost component remains smaller per kWh generated.

Step-by-Step Solution:
Identify cost components: capital, fuel, O&M.Recognize nuclear fuel’s extremely high energy density.Translate to operating costs: much lower fuel cost per kWh for nuclear.Conclude: fuel cost advantage lowers unit generation cost.

Verification / Alternative check:
Utility cost breakdowns typically show fuel as a small slice for nuclear generation compared with coal and gas, despite nuclear’s higher fixed costs.

Why Other Options Are Wrong:
Higher thermal efficiency: nuclear is usually lower, not higher, than coal on a percentage basis.Maintenance cost inherently lower: nuclear O&M is rigorous and not necessarily cheaper.No fuel handling costs: incorrect; nuclear fuel cycle handling is specialized and nonzero.

Common Pitfalls:
Confusing LCOE drivers; capital cost dominates nuclear but the question targets fuel cost per kWh.Assuming efficiency equals cost—fuel price and energy density are decisive.

Final Answer:
Fuel cost per unit power generated is lower for nuclear plants