Page 5 - AsiaElec Week 28 2022

AsiaElec COMMENTARY AsiaElec

The need for nuclear in

the energy transition

GLOBAL NUCLEAR is set to make a “comeback” and sees above $80bn to 2050.
capacity doubling between 2020 and 2050, from The report highlighted that the sector faces
413 GW to 812 GW, the International Energy rising costs, and that these must be cut in order
Agency (IEA) said in a recent report entitle for it to remain competitive with renewables.
Nuclear Power and Secure Energy Transitions. This means completing nuclear projects
However, achieving net zero globally by 2050 in advanced economies at around $5,000 per
will be extremely hard without continued invest- kW by 2030, compared with the reported cap-
ment in nuclear energy ital costs of around $9,000 per kW (excluding
The report said that nuclear was the sec- financing costs) for first-of-a kind projects.
ond largest source of low-emission power after There are some proven methods to reduce
hydropower, with 32 countries having nuclear costs, including finalising designs before start-
power plants (NPPs). However, it warned that ing construction, sticking with the same design
63% of reactors are now more than 30 years old, for subsequent units, and building multiple units
and the sector now faces the soaring costs of at the same site. Stable regulatory frameworks
closing or upgrading elderly technology along- throughout construction would also help avoid
side building new reactors. delays.
IEA Executive Director Fatih Birol said: “In One way forward would be to develop small
today’s context of the global energy crisis, sky- modular reactors (SMRs). In the IES net-zero
rocketing fossil fuel prices, energy security chal- emissions scenario (NZE), half of the emissions
lenges and ambitious climate commitments, I reductions by 2050 come from technologies,
believe nuclear power has a unique opportunity including small modular reactors, that are not
to stage a comeback. However, a new era for yet commercially viable.
nuclear power is by no means guaranteed. It will SMRs, generally defined as advanced nuclear
depend on governments putting in place robust reactors with a capacity of less than 300 MW,
policies to ensure safe and sustainable opera- have strong political and institutional support,
tion of nuclear plants for years to come – and to with substantial grants in the US, and increased
mobilise the necessary investments including in support in Canada, the UK and France. This sup-
new technologies.” port makes it possible to attract private investors,
However, he warned that Russia and China bringing new players and new supply chains to
are dominating the sector, with 27 out of 31 reac- the nuclear industry.
tors that started construction since 2017 being The IEA recommended that in order to meet
Russian or Chinese designs.” these targets, governments must extend the life-
Indeed, by 2050 developing economies will times of power plants, and make electricity mar-
dominate new reactor construction, while nucle- kets value dispatchable low-emissions capacity.
ar’s share of total global generation will fall to 8%. Governments must also create financing
By contrast, renewables will account for 90% of frameworks to support new reactors and pro-
power generation if the world meets net zero in mote efficient and effective safety regulation.
that year. Finally, they must implement solutions for
Emerging and developing economies will nuclear waste disposal and involve citizens in
account for more than 90% of global growth, prioritising approval and construction of high-
with China set to become the leading nuclear level waste disposal facilities in countries that do
power producer before 2030. not yet have them.
Advanced economies collectively see a 10% This is a key issue for nuclear power, and
increase in nuclear, as retirements are offset by the source of much opposition to the sector.
new plants, mainly in the US, France, the United The problem of waste is also the main reason
Kingdom and Canada. why many in the green movements do not view
Annual global investment in nuclear power nuclear power as a green technology and do not
rises is forecast to rise from $30bn during the see it as part of the energy transition.™
2010s to over $100bn by 2030, and will remain

Week 28 13•July•2022 www. NEWSBASE .com P5