Survey Of Energy Resources
NUCLEAR


Expansion of nuclear power
Even though nuclear power is generally consistent with sustainable development goals, further expansion of nuclear power faces public concern on nuclear waste management and political issues on the potential proliferation of nuclear weapons. Another challenge is to further strengthen the high level of nuclear safety, while improving the economic competitiveness of nuclear power, in particular, to assure profitability in open and deregulated electricity markets. A number of NPPs in many countries have already made a successful transition from a monopoly, cost-plus environment to a competitive market. This has been achieved through an integrated approach to meeting interdependent safety and economic goals. The experience to date shows that safety, operational and economic performance have improved in both privatised NPPs (e.g. UK) and those where electricity markets are being opened to greater competition (e.g. USA). NPP unit capability factor in the world has improved during the last decade by about 7%, which is equivalent to the building of 28 GWe of new NPPs. For the USA, the increase is more than 15% - from an average value of below 70% at the end of 1980’s to 86% in 1999 and it is estimated to have been around 88% in 2000. Analysis also shows that the NPPs with the best safety records had the highest availability and the lowest operating costs (which have fallen by as much as 40%).

Many existing NPPs have a significant economic advantage, particularly those which have had their capital investments depreciated or written-off. Well-managed NPPs, with their low fuel costs and steadily declining operating and maintenance costs, are often among the least expensive power plants to operate. This advantage has been sufficient to encourage the utilities to invest in plant life extension programmes. The liberalised or open market also rewards quick reactions and efficient operation of NPPs at competitive costs in some countries such as the USA. This has prompted consolidation in the nuclear industry, acquisitions, up-ratings and licence extension applications, rather than new construction.

The US Nuclear Regulatory Commission (NRC) has also adopted a risk-informed or performance-based approach for regulating the operations of NPPs, by which NPP lifetime extension programmes have been effectively carried out by many utilities or operators. As a result, the US NRC granted the first 20-year licence renewal to Calvert Cliffs units 1 & 2 (860 MWe pressurised water reactors, PWRs) in March 2000 and the second 20-year renewal to Oconee units 1 to 3 (886 MWe PWRs) in May 2000. These NPPs now have licensed operating life of 60 years. About 40% of operating NPPs in the USA have indicated an intention to seek licence renewals and the US NRC expects the figure to eventually reach 85%. On the other hand, the new anti-nuclear German government concluded an agreement with German utilities in June 2000 for an early phase-out of their 19 currently operating NPPs that will result in an average lifetime of 32 calendar years, while allowing utilities the option of closing less efficient NPPs sooner in order to run more efficient ones longer. Other initiatives by anti-nuclear governments in Western Europe focused on early termination or closure of some Eastern European NPPs and on negotiations to implement the "flexibility mechanisms" under the 1997 Kyoto Protocol, which seeks to limit future greenhouse gas emissions.

The capital-intensive nature of NPPs has also contributed to bringing new construction to a minimum, as is evident by only a handful of new construction starts over the past few years. Competing with fossil power plants and especially small gas units where an investment can often be recovered in less time than it takes to bring an NPP into operation, requires a lower capital investment for NPPs and substantially shorter construction period. Recent standardised NPPs with multiple units at the same site have seen construction periods shortened considerably and operating costs reduced as well. The French REP (PWR) 2000 series is estimated to have achieved savings of 20% in capital cost and a reduction in operating costs, such as those for staff training and spare parts storage. Such recently commissioned NPPs as Kashiwazaki Kariwa units 6 & 7 (1 356 MWe advanced boiling water reactors, BWRs) in Japan and Ulchin units 3 & 4 (1 000 MWe Korean standard PWRs) in the Republic of Korea were built in less than 5 years, which resulted in significantly reduced capital costs, compared with some nuclear units in other countries, where construction periods have been prolonged to even longer than 10 years.

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