Nuclear Politics

Changing Market And Policy Forces Are Leading To Nuclear Shutdowns, Says US Report

By David Dalton
25 August 2017

25 Aug (NucNet): Changing market and policy forces are challenging the US electricity system resulting in increased premature shutdowns of a significant number of baseload nuclear plants, which could harm the overall reliability and resilience of the national electric grid, a report by the Department of Energy (DOE) says. The ‘Staff Report to the Secretary on Electricity Markets and Reliability’, commissioned by energy secretary Rick Perry, says those forces include unprecedentedly low natural gas prices, low electricity demand growth and increased use of variable solar and wind due to various regulations and mandates at the state and federal levels. These are creating unintended consequences for all electricity generators but particularly baseload plants. “Ultimately, the continued closure of traditional baseload power plants calls for a comprehensive strategy for long-term reliability and resilience,” the report says. “A continual comprehensive regional and national review is needed to determine how a portfolio of domestic energy resources can be developed to ensure grid reliability and resilience.” The report calls for federal and regional authorities to work to create market conditions and price signals that will value and compensate new and existing essential reliability services, bulk power system resilience and fuel diversity. It recommends several actions for the DOE, including focusing its research and development on improving system reliability and resilience, implementing programmes to retain and develop the national electricity workforce, and implementing the White House’s executive order to promote energy independence. The report also calls on the US Nuclear Regulatory Commission to carry out its safety mission “without unnecessarily adding to the operating costs and economic uncertainty of nuclear energy” and asks for nuclear safety rules to be revisited using a risk-based approach. The report is online: http://bit.ly/2v8Z84H

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