Russell Ray opines that more than a dozen U.S. nuclear power plants have now either closed, are in the process of closing or are at high risk of closing. About half of the U.S. nuclear plants are no longer profitable. Why is that?
Nuclear power is the best option for meeting the U.S. clean energy goals. Consider this ... Nuclear power accounts for 67% of the U.S. zero-carbon electricity, according to the U.S. Energy Information Administration. Yet, the business of nuclear power is collapsing because the market cannot support the U.S. available capacity. Why?
Simply put, it comes down to supply and demand. A lot of low-priced natural gas-fired generation has flooded the market while regional demand for power is either flat or in decline. In addition, power prices are so low that some nuclear plants can no longer cover basic operating costs. Two Illinois nuclear plants, Clinton and Quad Cities, have lost a combined $800 million over the last six years.
In a battle against climate change, laws and policies must acknowledge nuclear power as the most important source of carbon-free electricity. State standards for renewable power should be changed to zero-carbon standards that recognize nuclear resources.
New York is the first state to offer support to an industry struggling to stay afloat.
Earlier this month, state regulators approved the Clean Energy Standard (CES). Other states should follow suit with similar measures. The CES encourages the use of nuclear and renewable power by mandating a 40% reduction in greenhouse gas emissions by 2030. The plan also requires power providers to get half of their power supplies from clean and renewable resources by 2030. Most importantly, the rule would pay the state nuclear plants up to $965 million in zero-emission credits.
As a result of the New York action, Exelon Corp. said it would invest about $200 million in two New York nuclear plants next year.
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Managed & Built by I2M Consulting, LLC | © 2010-
Managed & Built by I2M Consulting, LLC | © 2010-