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Nuclear power has regained attention due to its potential in reducing carbon emissions. A parliamentary committee in the UK has called for a clear strategy to increase nuclear generating capacity by over three times by 2050. Meanwhile, the Vogtle 3 unit in the US has started supplying electricity to Georgia’s power grid, marking the country’s first new reactor built from scratch in more than 30 years. However, this may also indicate doubts surrounding the future of such plants, despite their potential.
The climate case for nuclear power is strong as it can provide a consistent generation base to support intermittent solar and wind energy. With the transition of vehicles and industries from fossil fuels, a significant increase in generating capacity is required, making it challenging for renewables to bridge the entire gap.
However, nuclear power is considerably more expensive than renewables, which have seen a significant drop in costs. Moreover, the safety of storing nuclear waste is still unresolved, and projects in Europe and the US have frequently faced delays and budget overruns. These factors have deterred private investors.
EDF, the French energy company, now estimates that Hinkley Point C, the first new nuclear power station in the UK in nearly 30 years, will cost more than initially anticipated. EDF’s Flamanville-3 reactor in France is over a decade behind schedule. Similarly, the original $14 billion budget for Vogtle 3 and 4 in the US has exceeded $30 billion.
Japan and South Korea have a better track record, but Japan is not currently constructing nuclear power plants overseas. South Korea’s Kepco, which successfully built Abu Dhabi’s first nuclear plant, is facing a copyright lawsuit from Westinghouse in the US for using the same design elsewhere. Although China and Russia have completed multiple reactors on time, few Western nations are willing to purchase from them.
Small modular reactors, which are cheaper and quicker to build, may play a role in the future, but they are still in the development phase. Therefore, for nuclear power to fulfill the expectations of Western governments, the industry needs to enhance financing, construction processes, and supply chains, while demonstrating the ability to construct large reactors within allocated timeframes and resources.
The regulatory asset base model, adopted by the UK, can potentially lower capital and overall costs. This model allows consumers to contribute to the funding of a new plant through their energy bills even during the construction phase, thereby avoiding excessive interest charges. However, it results in higher upfront bills.
In terms of project selection and planning, it is crucial to look to successful designs from other regions and replicate them. A 2018 report by industry and the UK government emphasized the importance of finalizing plant designs before commencing construction to minimize costs. Omitting this step often leads to last-minute changes and subsequent delays, causing expenses to escalate.
Industry insiders assert that the challenge in building large reactors lies in engineering and project management rather than technology. To overcome this, there is a need for individuals with relevant skills and experience, which have declined in some Western nations. In response, the UK has launched a nuclear skills task force to address this gap.
Many of the measures engineers propose to keep nuclear costs down, such as better planning, communication, and implementing best practices, may sound mundane but are challenging to execute in reality. If gigawatt-scale reactors are to play a significant role in the west’s climate transition, the nuclear industry must improve its planning and execution capabilities.
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