Nuclear power is an economic source of electricity generation,
combining reliability, low greenhouse gas emissions and long-term cost competitiveness.
The operating costs of existing plants are usually very competitive
and these plants function well with a high degree of predictability.
These are the conclusions of a new report Nuclear Power Economics
and Project Structuring issued today by the World Nuclear Association.
However, in deregulated markets increased revenue uncertainty is hampering investment
in capital intensive projects such as new nuclear build.
In addition, failure to fully include the environmental costs of fossil fuels
and selective subsidisation of renewables are threatening
the operation of both current and new nuclear capacity.
Agneta Rising, Director General of the World Nuclear Association noted,
“Without effective markets that encourage the right long term investments
and fair treatment for nuclear in electricity markets
the world runs a serious risk of failing to meet its needs
for clean and affordable electricity.”
The report concludes that capital costs are key
to nuclear competitiveness.
In those countries that have maintained an active nuclear power plant
programme costs have risen less, and in some cases have fallen.
An important factor in managing costs is reducing
the construction time for new nuclear build.
Over the last 15 years the global average construction period for
a new reactor has fallen from around ten years to less than six years.
The report notes that while a number of carbon pricing schemes
have been implemented these still only cover about 12%
of annual global greenhouse gas emissions.
Elsewhere fossil fuels are gaining an unfair advantage over other generators
by not having to account for the costs of their emissions.
The report also notes that some schemes designed
to promote renewables have resulted in reduced wholesale prices
in some regions which has greatly reduced revenues for a number of nuclear plants.
Agneta Rising said, “Many governments want
to encourage low carbon electricity generation to help meet their objectives
of reducing greenhouse gas emissions.
But too many of these policies, by supporting only renewables,
are threatening the operation of low carbon nuclear generation
as well as fossil fuels, wiping out the environmental benefits that
the policies should achieve.”
The Nuclear Power Economics and Project Structuring report
is available for download from the World Nuclear Association website.
A selection of high resolution charts and graphics from
the report are available in the website’s gallery.
The World Nuclear Association is the industry organisation that represents
the global nuclear industry.
Its mission is to promote a wider understanding
of nuclear energy among key international influencers
by producing authoritative information,
developing common industry positions, and contributing to the energy debate,
as well as to pave the way for expanding nuclear business.