When I tell people I’m a clean energy consultant, oftentimes the first question I get asked is, “So, what do you think of nuclear?” Usually this comes from folks who are skeptical of renewables’ cost effectiveness and sometimes even of scientists’ climate change predictions. I admit, I don’t really work with nuclear. And I am genuinely conflicted about it. So, I take the easy way out, and tell them this: It doesn’t matter whether nuclear is a viable solution on a technical basis, because it’s just not cost-effective, and it’s highly unlikely to become so.
In January’s Flex Your Power newsletter, I found some nice analysis to back up all of the anecdotes I’ve heard working in the energy industry. I’ve reproduced Flex Your Power’s summary here, but I encourage you to read the study yourself. As you read the summary below, keep in mind that according to the American Wind Energy Association, state of the art wind power installations cost less than five cents per kWh (with the caveat that nuclear is baseload, while wind has intermittency issues), and retail electricity prices here in California averaged 12.8 cents per kWh in 2007. Anyway, here’s the Flex Your Power article:
New Study Finds Cost of Nuclear Too High
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| (Photo: Flickr) |
A new study, Business Risks and Costs of New Nuclear Power, by a leading expert in power plant costs, Craig A. Severance, finds nuclear power too costly to pursue.
The report affirms that many U.S. utilities are diversifying through a combination of aggressive load reduction incentives to customers, better grid management, renewable energy sources and natural gas. However, some U.S. utilities have less aggressive load reduction programs and are now exploring new nuclear power. Severance points out that the reason U.S. utilities stopped ordering nuclear power plants was their conclusion that nuclear power’s business risks and costs were too high.
The report notes that utilities promoting new nuclear power claim it is their least costly option, but independent studies have concluded new nuclear power is not economically competitive. Because of a history of cost overruns, construction delays and the fact that new generation designs have never been constructed, there is a major business risk that nuclear power will be more costly than projected, the report says. Furthermore, recent construction cost estimates (not counting operation or fuel costs) run from 17 to 22 cents/kWh when the nuclear facilities come online, and generation cost estimates - including fuel and operation and maintenance, but not distribution - are likely to be from 25 to 30 cents/kWh, which is triple current U.S. electricity rates. According to the report, this high cost may destroy the very demand the plant was built to serve.
Want to learn more? Check out the complete study.






