Today, nuclear energy remains the largest low carbon source of electricity in the world. Yet looking closer at the trend reveals that it is a rapidly decreasing share of the global portfolio as plants are retired and wind and solar consistently lead new energy capacity additions. The US fleet is the largest of any nation, with 94 reactors in 28 states but is gradually shrinking as aging reactors are retired due to maintenance costs and competition from cheaper sources of power like natural gas, wind, and solar.
Over the past 5 years, the financial pressure on nuclear plants has elevated a critical public policy question: Should we take action to keep nuclear plants open? We saw this play out differently in two Midwest states with transformative legislation (both good and bad) and a massive bribery scandal ensnaring utility executives, lobbyists, and elected officials in Ohio and Illinois.
With a new reactor design, known as a small modular reactor (SMR), a production tax credit available for nuclear projects through the Inflation Reduction Act, and financing support available from the US Dept. Of Energy Loan Program Office, public utility commissions are or will be reviewing proposals for the construction of the next generation of nuclear reactors. The promoters of new nuclear reactors will point to increases in CO2 emissions in New York, New England, and Pennsylvania after nuclear facilities closed in each region. They point to countries like Germany whose reliance on natural gas and coal run counterproductive to their climate and geopolitical goals. And, they say that the US needs the baseload power that nuclear offers for continued grid stability. Arguments against nuclear include safety concerns, global nuclear proliferation, more socially advantageous options in distributed solar and wind, and eyebrow-raising costs and delays in recent projects.
With this in mind, we talk with two experts in nuclear technology and economics in the US. We discuss the role that US nuclear could play in a low-carbon electricity future, the current proposal being entertained, and the challenges facing the industry. We start with Paul Wilson, Grainger Professor of Nuclear Engineering and the Chair of the University of Wisconsin-Madison‘s Department of Engineering Physics. Then we discuss the economics of small modular reactors with David Schlissel, Director of Resource Planning Analysis at the Institute for Energy Economics and Financial Analysis.
Host: Nick Hylla, MREA Executive Director
Guests: Dr. Paul Wilson, Chair, Department of Engineering Physics, UW - Madison
David Schlissel, Director of Resource Planning Analysis, Institute for Energy Economics and Financial Analysis
Episode resources: RiseUpMidwest.org
Live Event at The Energy Fair: https://www.theenergyfair.org/events/rise-up-live-events/
Show notes
0:20 – Nick overviews the current status of the aging nuclear fleet in the US
2:38 – Corruption issues surrounding nuclear legislation
5:27 – The financial costs of nuclear power
8:02 – Advancements in nuclear energy
9:30 – Small modular reactors
11:49 – Challenges facing the nuclear industry
16:21 – Opportunities for nuclear energy in the energy transition
20:18 – The process to build new nuclear capacity in Wisconsin
25:24 - License extensions for existing nuclear plants
29:53 – Management of used nuclear fuel
32:34 – Public engagement for the nuclear industry
39:23 – Energy storage in the Energy Transition
42:40 – France’s reputation with nuclear energy
49:23 – Nuclear fusion breakthroughs
57:05 – Nuclear cost overruns in Georgia
58:32 – Current vs SMR reactors
1:03:28 – Factors contributing to cost overruns
1:09:40 – Cost competitiveness
1:12:23 – Variability of solar and wind power
1:16:59 – Marketing of SMRs