Nuclear Power Generation Industry Trends

Use of Renewable Sources

Issues concerning safety (nuclear); long-term cost (petroleum and natural gas); and greenhouse gases (coal) are complicating and making more expensive the approval process for new power plants. Federal and state legislatures are actively encouraging development of electric power from wind, solar, geothermal, and hydro sources. A number of states have set capacity targets for the amount of power produced using renewable sources.

New Technologies for Coal-Fired Plants

Coal is the most plentiful and cheapest fossil fuel in the US and has a relatively stable price. Considerable research is being conducted into developing “clean” burning coal plants. One latest method under development captures and liquefies the carbon dioxide from burning coal and sells it to oil companies to recharge oil wells.

Renewed Interest in Nuclear Plants

New nuclear plants are being considered in the US for the first time in 20 years - since Long Island Lighting Company spent over $5 billion on the Shoreham nuclear plant that never received operating approval. France produces 79 percent of its electrical power from nuclear plants, and plants worldwide have operated without major problems since the Three Mile Island (1979) and Chernobyl (1986) incidents. In the past 20 years, plant designs and control mechanisms have become more sophisticated. A number of utilities plan to propose new facilities, but the length and complexity of the permitting process remains a challenge.

Deregulation

Nearly half the states have passed some form of electric power deregulation. Regulators believe that a deregulated, highly competitive marketplace will result in more efficient power generation and lower prices. Achieving lower prices has proved difficult because of high entry barriers and lack of market experience. After the supply and pricing problems in California during 2001, deregulation is still proceeding, but more slowly.