To support discussions with a sovereign wealth fund, a reactor vendor needed to demonstrate the broader economic and societal impact associated with the deployment of nuclear assets across the local economy. Recognising that the value of nuclear extends far beyond LCOE considerations, the client aimed to highlight the strategic importance of nuclear infrastructure projects and their wider economic ramifications. The scope of the analysis therefore included not only nuclear power plants, but also fuel cycle facilities and supporting industrial assets.
Damona supported the client by developing a detailed macroeconomic assessment covering both quantitative economic impacts and broader societal benefits. In parallel, leveraging its financial and investment expertise, Damona also supported the preparation of an investment case tailored to the sovereign wealth fund’s expectations and decision-making criteria.
To support this objective, Damona delivered the following activities:
- Job creation analysis: Detailed estimation of direct, indirect, and induced employment generated across multiple deployment scenarios, including both the national nuclear roadmap and the anticipated energy demand from data centres.
- Economic impact assessment: Evaluation of the impact of nuclear asset deployment on electricity prices, industrial productivity, national economic efficiency, and long-term international competitiveness.
- Fiscal impact analysis: Assessment of government fiscal benefits, including tax revenues, economic returns associated with subsidies and tax incentives, and broader public finance implications.
- Socio-economic cost-benefit analysis (SCBA): Development of an SCBA framework quantifying the broader contribution of the nuclear programme to society, including GDP growth, industrial value creation, infrastructure development, and long-term socio-economic benefits at both regional and national levels.
- Investment case development: Sensitivity analysis of the sovereign wealth fund’s investment, including projected returns across multiple investment horizons and deployment scenarios.
This engagement enabled the client to clearly articulate the broader economic and strategic benefits of its programme to both national and regional stakeholders, significantly strengthening the overall investment case.