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Title: Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet

Abstract

This report identifies underlying economic and electricity market factors that have led to early retirements of U.S. operating nuclear power plants, assesses the Gap between operating revenues and operating costs for selected nuclear power plants, and discusses a range of actions that might be taken to stop early retirement of operating nuclear power plants. The Kewaunee and Vermont Yankee nuclear power plants were retired early for economic and financial reasons. Early retirement has been announced or proposed for Clinton and Quad Cities in Illinois, Fitzpatrick and Ginna in New York, Fort Calhoun in Nebraska. Other nuclear power plants, including Palisades, Davis-Besse, Prairie Island, and Three Mile Island Unit 1, have been identified as facing financial stress that might lead to early retirement. The early retirement of operating nuclear power plants will mean the loss of a large amount of zero-emission electricity, inconsistent with the goal of reducing carbon emissions in the electricity sector. This report provides a high-level view of the major factors driving early retirement: • The U.S. market and private ownership approach to the electricity sector; • Low electricity market prices resulting from low natural gas prices, low demand growth, increased penetration of renewable generation, and negative electricitymore » market prices; and • No compensation to nuclear power plants for public benefits including zero-emission electricity.« less

Authors:
 [1];  [1];  [2];  [2];  [3]
  1. Idaho National Lab. (INL), Idaho Falls, ID (United States)
  2. Nuclear Economics Consulting Group, Washington, DC (United States)
  3. Grecheck Consulting LLC, Midlothian, VA (United States)
Publication Date:
Research Org.:
Idaho National Lab. (INL), Idaho Falls, ID (United States)
Sponsoring Org.:
USDOE Office of Nuclear Energy (NE)
OSTI Identifier:
1364498
Report Number(s):
INL/EXT-16-39951
TRN: US1703357
DOE Contract Number:
AC07-05ID14517
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; NUCLEAR POWER PLANTS; NUCLEAR POWER; NATURAL GAS; ELECTRICITY; MARKET; DEMAND; Costs Analysis; Economics; Electrycity Markets; NuClear Plant Operating Costs

Citation Formats

Szilard, Ronaldo, Sharpe, Phil, Kee, Edward, Davis, Edward, and Grecheck, Eugene. Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet. United States: N. p., 2016. Web. doi:10.2172/1364498.
Szilard, Ronaldo, Sharpe, Phil, Kee, Edward, Davis, Edward, & Grecheck, Eugene. Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet. United States. doi:10.2172/1364498.
Szilard, Ronaldo, Sharpe, Phil, Kee, Edward, Davis, Edward, and Grecheck, Eugene. Thu . "Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet". United States. doi:10.2172/1364498. https://www.osti.gov/servlets/purl/1364498.
@article{osti_1364498,
title = {Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet},
author = {Szilard, Ronaldo and Sharpe, Phil and Kee, Edward and Davis, Edward and Grecheck, Eugene},
abstractNote = {This report identifies underlying economic and electricity market factors that have led to early retirements of U.S. operating nuclear power plants, assesses the Gap between operating revenues and operating costs for selected nuclear power plants, and discusses a range of actions that might be taken to stop early retirement of operating nuclear power plants. The Kewaunee and Vermont Yankee nuclear power plants were retired early for economic and financial reasons. Early retirement has been announced or proposed for Clinton and Quad Cities in Illinois, Fitzpatrick and Ginna in New York, Fort Calhoun in Nebraska. Other nuclear power plants, including Palisades, Davis-Besse, Prairie Island, and Three Mile Island Unit 1, have been identified as facing financial stress that might lead to early retirement. The early retirement of operating nuclear power plants will mean the loss of a large amount of zero-emission electricity, inconsistent with the goal of reducing carbon emissions in the electricity sector. This report provides a high-level view of the major factors driving early retirement: • The U.S. market and private ownership approach to the electricity sector; • Low electricity market prices resulting from low natural gas prices, low demand growth, increased penetration of renewable generation, and negative electricity market prices; and • No compensation to nuclear power plants for public benefits including zero-emission electricity.},
doi = {10.2172/1364498},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Sep 01 00:00:00 EDT 2016},
month = {Thu Sep 01 00:00:00 EDT 2016}
}

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