Energy Economics Institute: "US, UK, China, and Eastern Europe Respond to Climate Change with Nuclear Power"

Countries Worldwide Respond Flexibly to COVID-19 Power Demand Decline
Pursuing Coal Phase-Out and Energy Transition but Not Excluding Nuclear Power
Strengthening Growth Engines for Future Nuclear Industry like SMR and AMR

[Image source=EPA Yonhap News]

[Asia Economy Reporter Moon Chaeseok] An analysis by a national research institute revealed that countries around the world, including the United States, the United Kingdom, China, and Eastern Europe, are responding to climate change through nuclear power generation. While pursuing energy transition policies, they are adjusting the share of energy sources by country according to supply and demand conditions.

According to the Korea Energy Economics Institute on the 22nd, the institute published the 'Global Nuclear Power Market Insight' report dated the 18th. The report showed that countries such as the UK, China, the Czech Republic, Hungary, and some US states are utilizing nuclear power as a zero greenhouse gas emission energy source to address climate change.

◆US: Flexible Operation Rather Than Accelerated Nuclear Phase-Out

Current Status of Nuclear Power Plant Construction by Country. (Source: Korea Energy Economics Institute)

As electricity demand has decreased due to the COVID-19 pandemic, countries have managed nuclear power facilities according to their domestic electricity demand. When demand is expected to increase, they proceed with or promote nuclear power plant construction; when demand stagnates, they gradually reduce it.

However, rather than unconditionally permanently shutting down or prematurely closing nuclear plants, they are simultaneously operating to maintain the growth momentum of the industry.

As of this month, the US is operating 95 reactors with a capacity of 97,154 MW. Two reactors (2,234 MW) are under construction, and 24 reactors (17,540 MW) are being decommissioned. As of last year, the US produced a total of 809 TWh of electricity, with nuclear power accounting for 19.7% of the total.

Major cases of permanent nuclear plant shutdowns include Indian Point Unit 2 and Duane Arnold. Early decommissioning cases include Crystal River Unit 3 and the closure of two nuclear plants (Dresden and Byron) operated by the nuclear power company Exelon.

The US government has not abandoned technology development and export strategies at the government level.

Recently, the Department of Energy's Nuclear Fuel Working Group (NFWG) announced a report on domestic nuclear fuel, technology development, and nuclear export activation strategies; the Department of Energy is supporting $65 million for a next-generation reactor demonstration program aiming to operate within seven years; and the Nuclear Regulatory Commission (NRC) granted final design certification for NuScale Power's 50 MW Small Modular Reactor (SMR), implementing policies to promote the nuclear industry.

◆UK: Developing Nuclear Industry for Decarbonization by 2050

Small Modular Reactor (SMR). (Image source=Yonhap News)

The UK generates 51 TWh of electricity from nuclear power, accounting for 15.6% of its total electricity generation. Notably, the UK is utilizing nuclear power as a measure to reduce greenhouse gases and respond to climate change.

The UK's Nuclear Innovation and Research Advisory Board (NIRAB) recommended in its April annual report that by 2050, at least half of the low-carbon electricity generation, excluding renewable energy supply, should be supplied by nuclear power.

Specifically, they proposed continuously developing large pressurized water reactor technology for baseload power generation; developing SMRs to provide grid flexibility needed to meet regional energy demand; and utilizing Advanced Modular Reactors (AMRs) to produce heat and hydrogen.

NIRAB presented six recommendations: promoting the operation of the first SMR unit by 2030; investing in AMR development capable of high-temperature output for heat, hydrogen, and synthetic fuel markets; developing AMR demonstration reactors and deciding on candidate technologies based on high-temperature gas reactors between 2030 and 2035; implementing cost-effective AMR deployment programs to achieve decarbonization by 2050; expanding the carbon-free impact of nuclear power through investment and implementation of fission and fusion programs; and promoting investment in fission technology through nuclear research and development with overseas institutions.

◆China: Accelerating Coal Phase-Out While Increasing Nuclear Power... Eastern Europe Increasing Nuclear Share

As of last year, China met 69% of its total 348 TWh electricity generation with fossil fuels and 5% with nuclear power. Currently, 49 nuclear reactors are operating, and 10 are under construction. The core strategy is to accelerate coal phase-out while increasing nuclear power.

Previously, in 2014, the Chinese State Council announced plans to reduce greenhouse gas emissions to 60% of 2005 levels by 2030. Subsequently, through the 13th Five-Year Plan in 2016, China approved the construction of 6 to 8 nuclear reactors annually, aiming to increase nuclear power capacity to 58 gigawatts electric (GWe) by this year.

Conversely, coal-fired power plants are being reduced. Construction of coal-fired power plants with a capacity of 150 GWe has been canceled or postponed. The plan is to limit coal-fired power plant capacity to 1,100 GWe by this year.

Exterior view of the Dukovany Nuclear Power Plant in the Czech Republic. (Photo by Korea Hydro & Nuclear Power)

In Eastern Europe, the Czech Republic generated 35% of its total 87 TWh electricity from nuclear power last year. In May 2015, the Czech Republic decided in its 'Long-Term Energy Strategy to 2040' to expand nuclear power to 46-58%. Renewable energy was set at 18-25%, and coal at 11-21%.

The Dukovany nuclear power plant new project, for which Korea Hydro & Nuclear Power is competing, is key. Currently operating four units, Dukovany plans to construct at least one new reactor with a capacity of 1,200 MW. The investment is estimated at about 6 billion euros.

The new nuclear project aims to select suppliers by 2022 and complete construction by 2036. Czech Power Company will announce a tender for turnkey reactor suppliers by the end of this year. Suppliers will be selected by the end of 2022.

Currently, Korea Hydro & Nuclear Power, Russia's Rosatom, France's EDF, China's CGN, and the US's Westinghouse are preparing to participate in the new project bidding.

Like the US and UK, the Czech Republic is also promoting SMR construction. In September last year, Czech Power Company signed a memorandum of understanding with US-based NuScale Power. The two companies plan to share nuclear and technical expertise, including supply chain development, construction, operation, and maintenance information.

Hungary also announced plans to reduce greenhouse gas emissions by 52-85% compared to 1990 levels by 2050. The Hungarian government emphasized that achieving climate goals is impossible without two new reactors, Paks Units 5 and 6, which are expected to contribute to reducing 17 million tons of CO2 emissions annually.

◆Germany, Japan, and Others Accelerate Energy Transition

Germany supplied 11.72% of its total 613.1 TWh electricity generation from nuclear power as of 2018 but is aiming to reduce this. It is pursuing the Energiewende policy, which phases out nuclear power plants and expands the share of renewable energy generation.

Following the Fukushima nuclear accident in 2011, Japan closed aging nuclear plants and withdrew its previous policy of continued operation. It plans to phase out all nuclear plants by 2022.

A representative example of nuclear power reduction is the decommissioning of Philippsburg Unit 2, which began commercial operation in April 1985. In April, Japan completed an interim storage facility for low- and intermediate-level radioactive waste within the nuclear plant.

Source=Korea Energy Economics Institute

Japan places more emphasis on energy transition than nuclear power revitalization, to the extent that new nuclear plant construction is delayed by regulations. A representative case is J-POWER's postponement of safety measure construction at Oma Nuclear Power Plant from the second half of this year to the second half of 2022.

Oma Nuclear Power Plant began construction in May 2008 but halted construction in March 2011 due to the Great East Japan Earthquake. After partially resuming construction in October 2012, it applied for new regulatory conformity review in 2014 and is currently under regulatory review, with construction halted.

However, some nuclear plants have received approval for restart. On February 26, the Onagawa Town Council agreed to restart Onagawa Unit 2 (825 MW), which passed the safety review under the new regulatory standards.

Source: Korea Energy Economics Institute

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