"US Nuclear Plant Closure Areas Face Job Losses and Regional Economic Decline"

EKyung Research Report... "Need to Establish Regional Economic Development Plans Before Nuclear Plant Closures"

[Sejong=Asia Economy Reporter Kwon Haeyoung] In the United States, which operates the largest number of 94 nuclear power plants in the world, concerns are being raised about the economic downturn in local communities due to nuclear plant closures. Since the impact of nuclear plant closures on nearby areas is significant, there are calls to establish local economic development plans early to minimize social and economic repercussions.

According to the Korea Energy Economics Institute on the 19th, the U.S. plans to shut down nuclear power plants with a total capacity of 5.1 gigawatts (GW) this year.

Currently, regions where nuclear plants have been closed are experiencing financial contraction and job losses. This is why there are calls to minimize the economic downturn in areas affected by nuclear plant closures.

In the case of Indian Point Units 2 and 3, located north of New York City, closures resulted in decreased tax revenues and job losses in nearby areas. These plants reportedly generated an annual regional gross product (GRP) of $400 million and employed 2,000 people. The annual economic loss due to the closure of the Diablo Canyon Nuclear Power Plant in California is estimated to be around $800 million. The closure of the Kewaunee Nuclear Power Plant in Wisconsin eliminated 650 jobs and caused an estimated annual loss of $630 million in the surrounding area.

Accordingly, the U.S. Economic Development Administration (EDA) has taken measures such as allocating a budget of $15 million last year to support regions affected by nuclear plant closures.

The Korea Energy Economics Institute cited a report stating, "In the U.S., there are calls to identify factors hindering local economic development, such as spent nuclear fuel, in areas near nuclear plants and to establish local economic development plans prior to plant decommissioning." It also reported that "there are proposals for the federal government to assist in creating interregional networks so that areas that have experienced nuclear plant closures can share their experiences during the closure process."

However, alongside these nuclear plant closures, the U.S. is also extending the lifespan of some nuclear plants to respond to climate change. Last month, the U.S. Nuclear Regulatory Commission (NRC) extended the operating licenses of Units 1 and 2 of the Surry Nuclear Power Plant in Virginia by 20 years. As a result, the lifespan of Surry Units 1 and 2 has been extended from the original 60 years to 80 years.

This content was produced with the assistance of AI translation services.