Natural gas detracts from appeal of reactors

A main factor for the projected slowdown of nuclear power’s global expansion is cheap natural gas.

Nuclear experts say natural gas has made atomic energy look much less appealing to a utility company, where cost is usually the bottom line.

“The main reason is that the price of oil has gone down,” said Lady Judge.

“Nuclear used to be a good source of low-cost, baseload generation but as the price of oil went down, the price of nuclear went up because new nuclear plants had new safety features that were more expensive than old plants, so they became more expensive to build.”

William Tobey, a senior fellow at the Belfer Centre for Science and International Affairs at Harvard University, said the combination of cheap natural gas and safety concerns after Fukushima had limited the growth of nuclear power.

“I’m not certain it makes sense to try to change that dynamic, except by introducing safer and more efficient reactors,” Mr Tobey said. “The logic of small, modular reactors is that a single design and mass production of parts could make licensing and operation much cheaper on a cost per kilowatt basis.

“That concept has not yet been proven but if it were, it would make nuclear energy much more attractive.”

Alternatives to nuclear are said to be growing significantly as developed economies are becoming more efficient with energy use.

“I don’t think we should do things to expand nuclear power by itself,” said Miles Pomper, a senior research associate at the Monterey Institute of International Studies in Washington.

“If we decide to put in more restrictive carbon policies, which I would support, that should help nuclear power. But there’s no reason to subsidise the nuclear industry.”