Costing Nuclear Power's Future

IMGXYZ1134IMGZYXIf nuclear energy is to be a part of a “green” energy solution to reducing carbon emissions, what will it cost?  Carnegie convened an all-day workshop featuring leading experts on the economics of nuclear power, both in the United States and in Europe and the Middle East.

Panel One

The workshop kicked off with overview presentations of the cost of new nuclear power reactors, where those nuclear reactors might be installed, and how the global financial downturn might affect plans to build new nuclear power reactors. Jim Harding (Harding Consulting), who performed the economic analysis for the Keystone Center’s study in 2007, updated cost escalation figures for new nuclear reactors. Sharon Squassoni of the Carnegie Endowment presented three scenarios of reactor capacity growth out to 2050, and Steve Thomas, of Greenwich University, considered the implications of the current financial crisis for new reactor construction. Henry Sokolski of the Nonproliferation Policy Education Center moderated the session.

Panel Two

Foreign nuclear energy plans are subject to potentially different cost calculations and the second panel considered programs in Europe and the Middle East. Moderated by Aloulou Fawzi of the Department of Energy, this panel featured an assessment by Peter Tynan, a Dalberg Global Development Advisor, of the energy strategies and the role of nuclear power in Saudi Arabia, Egypt, and Turkey. Nuclear energy consultant Mycle Schneider analyzed the hidden costs of the French nuclear program, and David Stellfox of Platts reported on new developments in the United Kingdom’s nuclear power plans.

Luncheon Keynote

Nuclear power is often heralded as a solution to the world’s climate crisis. Indeed, recent media has focused more on the potential of nuclear power than of other low- or no-carbon energy supplies. The Carnegie Endowment, in conjunction with the Nonproliferation Policy Education Center, hosted Amory Lovins in a keynote address to compare nuclear power to its energy competitors.

Panel Three

The recent financial crisis in the United States has sparked a demand for accountability and a renewed public interest in government spending. Doug Koplow, principal of Earth Track, presented his analysis of the extent of government subsidies to nuclear power in the United States. Larry Parker of the Congressional Research Service discussed the uncertainties inherent in projecting carbon pricing; and

Justin Falk of the Congressional Budget Office summarized the results of a 2008 CBO study on the economic competitiveness of nuclear power, touching on the impact of EPACT 2005 and carbon pricing. Steve Mufson of the Washington Post moderated the session.

Panel Four

The full cost of nuclear power is not limited to reactors, but must also take into account other parts of the fuel cycle uranium enrichment and other front-end fuel services, and waste management and/or reprocessing. Steve Kidd of the World Nuclear Association explored some of the myths of the fuel cycle (e.g., limits on uranium supplies) and Tom Cochran of the Natural Resources Defense Council covered the economics of plutonium reprocessing. The Carnegie Endowment’s Sharon Squassoni moderated the discussion.

Panel Five

The last panel focused on how the public manages two risks unique to the nuclear industry – proliferation and nuclear accidents. Chris Ford of the Hudson Institute presented his views on the challenges facing peaceful nuclear energy and Simon Carroll, an independent consultant, explored the liability and compensation risks where insufficient insurance coverage exists.