A Better Time Now to Consider New Reactors
- (ed.)
Mr. Christopher Crane, President and Chief Nuclear Officer of Exelon Nuclear was interviewed regarding his views on a series of questions related to the future of the nuclear industry in the United States. His view is that in order for new nuclear power plants to be considered, they must be economically competitive when compared to other baseload generation alternatives. With respect to capital cost, the industry has informally conveyed that overnight capital costs need to be below the range of $1,000-$1,200/kWE. Reactor vendors are working to reduce their first of a kind engineering costs to meet this capital cost threshold. Financing is then the next significant factor, which is complicated by whether the plant is being constructed in a regulated environment where the power company has the security of a regulated rate of return or as a merchant plant where the company assumes the risks and benefits of the proposed investment. With respect to operating and maintenance costs, the nuclear power industry has been dedicated to reducing costs while maintaining or improving safety. There are sound plans for spent fuel and high-level waste disposal, but there is a need to improve public confidence in transportation aspects. Regarding making new plants more attractive to investors, the risk factor has been a concern. The new Part 52 process is designed to help by requiring safety design issues to be identified and resolved prior to the issuance of the Combined Operating License (COL) process. While the revised process appears to be more acceptable from an investment risk perspective, there remains uncertainty in the fact that it has never been demonstrated. Skepticism, too, still exists with regard to building plants on schedule and within budget. Mr. Crane concludes that certain incentives will be needed for ''first movers'' in nuclear investment. These could include production tax credits, investment tax credits, government loan guarantees, and power purchase agreements. Despite the challenges facing new plant development, his view is that there is not a better time than now to consider new reactors. The first, most strategic way for the government to ensure new nuclear construction is to establish a national energy platform that recognizes the contribution of nuclear power. Actions are needed too in the reactor design and regulatory process. The best-suited technology is the advanced light water reactor designs. In particular, the Westinghouse AP1000 and the General Electric ESBSW look to be the most promising. Nuclear plants can also help comply with the Kyoto protocol. It is estimated that in 2002, the 103 nuclear units in the U.S. prevented 189.5 million metric tons of carbon, 2.28 million short tons of sulfur dioxide, and 1.39 million short tons of nitrogen oxides. Additional plants only serve to increase these amounts, but all energy sources must strive toward efficiencies to ensure diversification. Future staffing issues are also a critical element for new and existing plants. Not only are nuclear engineers essential, many other skill sets are required to operate and maintain facilities. It is important that we encourage young people to study math and science and it is important that they understand the wide variety of career opportunities available within the nuclear power industry. The interview ends with comments regarding Exelon's pursuit of an early site permit (ESP).
- Research Organization:
- Exelon Nuclear (US)
- Sponsoring Organization:
- none (US)
- OSTI ID:
- 825400
- Journal Information:
- Nuclear Plant Journal, Vol. 22, Issue 2; Other Information: Mar-Apr 2004 issue; PBD: 1 Mar 2004; ISSN 0892-2055
- Country of Publication:
- United States
- Language:
- English
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21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
29 ENERGY PLANNING
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22 GENERAL STUDIES OF NUCLEAR REACTORS
CAPITALIZED COST
ENERGY SOURCES
FINANCIAL INCENTIVES
KYOTO PROTOCOL
NITROGEN OXIDES
NUCLEAR INDUSTRY
NUCLEAR POWER
NUCLEAR POWER PLANTS
OPERATING LICENSES
SEVERANCE TAX
SPENT FUELS
SULFUR DIOXIDE
TAX CREDITS
WASTE DISPOSAL
ECONOMICS
ENVIRONMENT
PUBLIC OPINION
ENERGY POLICY
REACTOR LICENSING
USA