Nuclear energy is increasingly getting another look by federal and state officials seeking to cut greenhouse gas emissions and bolster energy security.
The industry, which is struggling to grow in the U.S., could increase generating capacity in 2023 if Southern Company’s Vogtle units 3 and 4 come online as expected.
A federal zero-emission nuclear power production credit, state legislation ending bans on nuclear plant construction and state policies easing development of small modular reactors, defined by the International Atomic Energy Agency as advanced nuclear reactors with a capacity of up to 300 MW, are among the recent developments spurring renewed interest in the industry.
Detractors cite safety risks, rising costs and other concerns. Critics also caution that a significant increase in nuclear generation in the U.S. is years, maybe even decades, away.
The International Atomic Energy Agency expects global nuclear capacity, in a high-case scenario, to more than double to 873 electrical GW net by 2050, compared to 390 GW now. That would be 81 GW more than last year’s projection. In a low-case scenario, nuclear generating capacity remains essentially flat in 2050 compared to 2021.
In the U.S., however, nuclear electricity generation declined for a second consecutive year in 2021, according to the U.S. Energy Information Administration. Output from nuclear power plants totaled 778 million MWh, or 1.5% less than in 2020. Nuclear’s share of U.S. electricity generation across all sectors in 2021 was similar to its average share in the previous decade: 19%.
As of November, seven units with a net summer capacity of 5,505 MW had retired since 2018, according to the EIA. The agency listed four Entergy plants: Palisades in Michigan; Indian Point 2 and Indian Point 3 in New York; and Pilgrim in Plymouth, Massachusetts. Also retired were two Exelon plants: Three Mile Island in Pennsylvania and Oyster Creek in New Jersey and NextEra Energy’s Duane Arnold facility in Iowa.
In addition, California’s Diablo Canyon, which is slated to retire a unit in 2024 and another in 2025, could remain open with funding conditionally approved by the U.S. Department of Energy.
Federal money, state policies induce nuclear investment
The Inflation Reduction Act, which commits $369 billion for climate efforts, includes a zero-emission nuclear power production credit. It provides up to $15 a MWh for electricity produced, assuming labor and wage requirements are met.
The credit will be available for plants in service in 2024 and would extend through 2032, according to the DOE.
However, the fiscal year 2023 omnibus spending measure enacted last month cut funding for the DOE’s Office of Nuclear Energy by $182 million from fiscal year 2022, to $1.47 billion. The FY 2023 spending includes $85 million for the Advanced Reactor Demonstration Program, $322 million for fuel cycle research and development, $114 million for accident tolerant fuels and $259 million for reactor research and development.
Maria Korsnick, president and CEO of the Nuclear Energy Institute, said the $1.7 trillion spending bill includes “robust funding” for public-private partnerships and support for nuclear energy education and research infrastructure. But she said it “fell short” of $2.1 billion needed to bolster the domestic nuclear fuel supply.
Federal spending to provide incentives for nuclear energy development began before Congress and President Joe Biden approved the omnibus spending bill last year.
The $1.2 trillion Infrastructure Investment and Jobs Act that Biden signed into law in November 2021 includes $62 billion for clean energy projects. Spending was directed at advanced nuclear projects, preventing the premature retirement of nuclear plants and considering how nuclear power may produce hydrogen for other energy applications.
In addition, states are looking to bolster nuclear power. Christine Csizmadia, senior director of state government affairs and advocacy at the NEI, said several states are broadening policies that aim to advance nuclear energy. Legislation supports studies of small modular reactors, providing tax incentives for nuclear power plant construction and ending moratoriums on new plants.
“This is a brand new time,” she said. “We’ve never deployed new technology in the market like this.”
Source: Utility Dive