Strategic management of Owner's Costs in Serbia's nuclear energy sector

The decision to begin developing nuclear energy and to build the first NPP is not merely the purchase of an energy facility, but the creation of a new science-intensive industry for 100 years and more. For Serbia, which lifted a 35-year moratorium in November 2024, it is critically important to understand the structure of the 'Owner's Costs' (Owner's Costs), which are not included in the vendor contract (EPC contract), but may amount to 15% to 30% of the total project cost.

In international practice, especially in nuclear energy (taking into account our experience and current projects in Serbia and Turkey), Owner's Costs (the customer’s costs) are the expenses borne by the project owner beyond the EPC contract price (engineering, procurement, construction).

If the Republic of Serbia plans to bring capacities online by 2035, annual contributions to the protected fund of Owner's Costs should begin already at the stage of PTI (Preliminary Technical Investigation/Study)  (2026–2027), to ensure the readiness of the personnel and infrastructural base by the moment of pouring the "first concrete". An analysis shows that attempting to finance these articles on a residual basis will lead to a technological default of the project.

This paper presents a comprehensive analysis of the structure and volumes of the project owner's costs (Owner's Costs) arising in the implementation of the Republic of Serbia's nuclear energy development program.

The central topic of the study is overcoming the “price tag trap” — a systemic underestimation of expenses that are not included in the EPC contract with the vendor, but are critically important for the legitimacy and safety of the projectBased on international experience and the IAEA methodology, the justification for allocating Owner's Costs into a protected line in the state budget already at the stage of preliminary studies (2026–2027).

To ensure energy sovereignty, the Republic of Serbia should act as a qualified and independent Purchaser Establishment of a Special Project Organization (SPV) under direct subordination to the Prime Minister to consolidate all accounts under the standard IAEA Account 70 and in allocation of Owner's Costs into a separate financial instrument at an early stage — in our view, the only way to avoid a “technological default” and to ensure project handover within the established timeframe (by 2035–2040)..