The economics of power station refurbishment

The economic and financial analysis of a proposal to refurbish a power station is, in principle, no different from the analysis required for any investment decision. The authors concentrate on the factors that distinguish the economics of refurbishment from the economics of new stations. They describe the circumstances in which refurbishment may be beneficial and discuss how the costs and benefits can be evaluated. Particular considerations that apply to developing and industrialised countries are identified and for the latter they discuss implications for refurbishment in view of the privatisation of the UK electricity supply industry