17 Jan (NucNet): Of all the challenges facing the nuclear energy sector, the most significant is the “enormous” capital costs needed to build new or refurbish existing nuclear plants, a report by Canada’s Public Policy Forum says.
The report, the result of expert workshops in Saskatoon and Toronto and an executive summit in Ottawa, says it is difficult to make the political case that public funds should be committed to large, expensive energy projects that may not come online for nearly a decade.
Typically, investment costs of nuclear power plants account for around 60 percent of total project lifecycle costs, the report says.
Despite the fact that nuclear power provides relatively cheap electricity with low fuel and low operational costs, the upfront investment will continue to play a significant role in decisions to build new plants, the report says.
According to some workshop participants, government and business leaders need to explore new investment strategies that spread the financial risk and funding responsibilities among different stakeholders to overcome this obstacle.
The future of the nuclear energy sector in Canada is dependent upon a number of key factors, particularly whether a business case can be made and new technologies can demonstrate long-term competitive economics, the report concludes.
The report also proposes that Canada pursues opportunities to develop small modular reactors, strengthens its national laboratories and improves the engagement and transparency of its regulatory regime.
The report is online: www.ppforum.ca/sites/default/files/Nuclear_Final_report_Jan_07_2014.pdf
