WNN reported in Fall, 2020 that prejudice towards nuclear power among some policymakers is preventing a fact-based assessment of its benefits, including the ability to cut global greenhouse gas emissions, Bohdan Zronek, chief nuclear officer at Czech utility ÄŒEZ, told participants in World Nuclear Association's Strategic eForum last week. ÄŒEZ was one of seven utilities that wrote to the European Commission in March, arguing that the nuclear industry ought to benefit from future sustainable financing.
Speaking on the high-level panel Driving Investment towards nuclear projects on 10 September, Zronek noted the emission reduction targets suggested by the European Commission and the European Parliament of, respectively, 55% and 65%, by 2030. The forecast for 2040 by the European Nuclear Safety Regulators Group, however, suggests "big trouble" ahead, he said.
"Most countries in Europe will be hardly sufficient in power production and it will be very difficult to know where to buy or import from. Power production is now more a matter of ideology and policy than a technical issue, which creates a tough environment for construction and financing of any power source as we operate usually as stock market utilities, and we all have to meet our laws, regulations and corporate rules," he said.
"We can have national strategies, but financing any source, especially nuclear, needs governmental involvement and support. In the current environment, hardly any investment in new power sources is possible. We can forecast energy prices and sell futures [contracts] for one to three years ahead, even if to do so the market knows that prices are very volatile, and so it’s very difficult to create an economic model that is even only a few years ahead." A governmental support mechanism is needed to help offset the construction and operation risks of new nuclear projects, he said, and referred to recent progress in the Czech Republic.
On 28 July, the Czech government approved a bill on the country's transition to low-carbon energy that will help with the construction of new units at the Dukovany nuclear power plant. The legislation is designed to regulate an off-take agreement that was signed the same day by the Ministry of Industry and Trade, ÄŒEZ and Elektrárna Dukovany II. According to this, the state will bear the political, legislative and financing risks, while the investor bears the construction and operation risks. The investor has to choose and negotiate a contract with the main supplier of a new nuclear power plant for Dukovany by the end of 2024. It must also ensure the necessary permits are received in time for a new unit to be put into operation in 2036.
Zronek said this off-take agreement, with financing support "coming directly from the state budget", will reduce the levelized cost of energy and reward bill payers with lower electricity prices. "It's looking for a balance between the governmental role and the investor role, and creating an environment that will create stable conditions for financing new build, which is the goal," he said.
Asked about the apparent lack of a definition for sustainable finance, he said, "We may agree to reduce the burning of fossil fuels, we may understand gas transition technology, but countries are hesitating or international organisations are hesitating to discuss the role of CO2-free nuclear, which brings uncertainty. We’re losing time in bringing a clear solution. I believe we really need a broadly agreed understanding of 'sustainable'. We need to have clearer criteria that are not spoiled by any ideology or lobbying." He added: "A strong international entity needs to lead this discussion." A "bad example" of leadership on this topic, he said, is the European Union’s taxonomy on sustainable finance and its 'Do no Significant Harm' provisions that thus far exclude nuclear power, [which demonstrates the ignorance (or agenda-driven prejudice) exhibited by some regulators.]
"Nuclear is in a vacuum," he said, "and for a bank or an investor it's a very insecure environment to invest in this technology, so we have to look for a solution." He added: "Everybody is looking at how to reduce the cost of money and having clear criteria for 'sustainable' will help because it would at least mean fairer [and more rational] conditions."
[Also see:
Markets lack a price signal for nuclear investment] 14 September 2020
The nuclear industry should work with policymakers on the design of market mechanisms that can produce a clear price signal to attract investors to this low-carbon form of electricity, Jostein Kristensen, partner with economics consultancy firm Oxera, told participants in World Nuclear Association's Strategic eForum last week. Markets currently do not reflect the value of nuclear power as a sustainable and reliable source of energy in the fight against climate change, he said. "Inconsistent commitment" by governments towards nuclear generating technologies can make investment conditions very uncertain and result in not achieving economies of scale for the nuclear generation sector. This means the ability to bring costs down over the long term is "a chance that might be missed", he said. Read more ...
China readying for nuclear expansion, says Zheng
11 September 2020
The future of nuclear power in China is promising, Zheng Mingguang, Chief Engineer at China's State Power Investment Corporation told World Nuclear Association's Strategic eForum 2020 on 10 September. He believes both the use of large and small-scale reactors will find applications in China beyond just electricity generation. Speaking during the high-level panel Driving investment towards nuclear projects, Zheng said the coronavirus pandemic had led to an overall significant reduction in electricity production in China. However, he noted that power consumption in some areas, such as 5G networks and big data systems, had risen. "In the future we think power consumption will increase, so this for nuclear power is the best opportunity," he said. Read more ...
Future energy system must include nuclear, says panel
10 September 2020
A high-level panel of senior political figures and experts from leading international energy organisations on 9 September discussed how nuclear energy can address some of the most pressing issues the world is facing. The discussion took place during the first session of World Nuclear Association's Strategic eForum 2020. Opening the event - titled Building a stronger and cleaner tomorrow with nuclear energy - World Nuclear Association Director General Agneta Rising said the world has many challenges to tackle simultaneously: climate change, the post COVID-19 pandemic recovery and supplying ever more electricity around the world. Read more ...
US DOC, Rosatom initial uranium agreement extension
14 September 2020
The US Department of Commerce and Russian state nuclear corporation Rosatom have initialed a draft amendment to extend the Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation, which expires this year. The amendment, if finalized, will extend the deal to 2040 and "reduce US reliance on uranium from Russia" for the next 20 years. In a letter dated 11 September, Joseph Laroski, deputy assistant secretary for Policy & Negotiations Enforcement & Compliance at the DOC, said interested parties, industrial users and the public are invited to comment on the draft amendment. Comments are due no later than the close of business on 28 September. The DOC wants to finalize the deal no later than 5 October. Read more ...
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