Nuclear Renaissance at Long Last? Not So Fast…

11 months after the worst nuclear disaster since Chernobyl, two new US reactors got the green light from governing body NRC. The two Georgia plants will be the first new reactors in over three decades. In fact the site's combined construction and operating licenses, granted by the NRC, are the first of this type ever given. These licenses give Southern Co. permission to finish construction and eventually operate two Westinghouse AP1000 reactors. This is wonderful news for the nuclear industry, but while some have visions of the long-awaited nuclear renaissance, it may be too soon to start ringing the victory bell. As an energy supplier, the end product of a nuclear plant is electricity, but with the recent discoveries of large shale deposits in the Eastern United States, natural gas prices have fallen to a price not seen since 1999.

Competition from shale gas

Like any industry, the utilities costs are driven by competition, and in order to stay competitive against such low prices, nuclear generating sites will have to lower their prices too, cutting into profit margins. This makes new nuclear construction opportunities like the two newly licensed plants in Georgia, with their high upfront costs for permitting and labor, seem less and less cost effective when faced with such a challenging market. Local state and even national governments have recognized the need for diversity when it comes to their domestically produced energy, avoiding too much reliance on any one wedge of the pie. But which will win out - the push for clean energy like nuclear, paying slightly more (10 cents per kWh), or the 8 cents/kWh natural gas? It's hard to say in a struggling economy which side will eventually win out. But while the debate continues so does construction in Georgia. Though hopes for a true nuclear renaissance may be dwindling, but the new plants give hope to the nuclear industry and remind nuclear supporters that the US has not forgotten nuclear power as a strong part of its energy profile.

Nuclear energy shows growth potential in Europe

America isn't alone in the push for new nuclear plants. Two weeks ago Britain's Prime Minister David Cameron and France's President Nicolas Sarkozy entered talks about creating a new nuclear power generating site in England. If all goes well, Hinkley Point in Southern England will be the home of a European Pressurized Reactor or EPR. EPR, according to Areva's website, boasts an output of about 1,650 megawatt of electricity, and up to 10% in production savings compared to current models. As a point of comparison, the largest nuclear generating site in the US is the Palo Verde plant, which generates about 3,900 Megawatt of electricity combined from its three reactors, the largest of which produces 1,317 MW. The project, to be sponsored by Britain's Rolls Royce and France's EDF and Areva, could create thousands of jobs and help to stimulate the European economy. So far the project estimates upwards of a $600 million budget. But who better to learn from than the French, who generate more than 75% of their domestic power from nuclear, the largest percentage in the world.

On the rise or has-been - what's US nuclear energy's future?

Related links: http://www.usatoday.com/news/washington/story/2012-02-09/us-nuclear-reactors-approve/53027204/1 http://www.nei.org/resourcesandstats/nuclear_statistics/usnuclearpowerplants/ http://news.yahoo.com/france-britain-sign-nuclear-deals-talk-syria-110209684.html http://news.yahoo.com/britain-france-sign-nuclear-power-deal-summit-002037086.html http://www.areva.com/EN/global-offer-419/epr-reactor-one-of-the-most-powerful-in-the-world.html http://insideclimatenews.org/news/20090930/25-cents-kilowatt-hour-americas-cheapest-cleanest-fuel-holds-steady