The economics of nuclear energy are differentiated from its main competitors in electricity generation, natural gas and coal, by the fact that nuclear energy typically has high construction costs and low variable operating costs. As a result, the cost competitiveness of nuclear energy depends highly on initial construction costs and the cost of capital for nuclear power companies. Drivers of the initial construction costs include new technologies, especially for increased safety, and government regulations and permitting requirements for grid connections, safety, and storage.

Cost of capital can be driven by a wide variety of factors including the state of interest rates around the world, but typically, governmental regulation of nuclear energy has heavily influenced the availability and pricing of capital for nuclear energy projects. This includes at one time heavy subsidies for nuclear power and more recently, strong restrictions on nuclear energy development.