POWER September 2011 - 78

Commentary
Advancing America's
Nuclear Infrastructure
By Mike Rencheck
I
t is fair to say that 2011 is bringing some uncertainty into
the nuclear energy industry. The tsunami and subsequent
events at Fukushima present Japan and our industry with
new challenges but also serve as a catalyst for continuous improvement.
In the U.S., we are learning from these events and
improving our operations, designs, and emergency response approaches
to make our plants safer, more efficient, and more
environmentally friendly.
One aspect that has not changed: the fundamentals of energy.
Our nation is one of the world's two largest electricity consumers,
and this demand is expected to increase by nearly 25% over the
next two decades. How can we meet rising demand with sources
that are available and affordable while controlling environmental
emissions? Meeting that challenge will require realistic and longterm
evaluation of our choices. In the end, we will discover that
we must invest in a range of sources, including nuclear energy.
Nuclear energy remains a safe, reliable, and economical way to
produce baseload electricity. America's nuclear energy industry
produces 20% of our electricity, reduces dependence on fossil
fuels, avoids environmental emissions, and keeps electricity prices
predictable and affordable. For America to continue reaping
these benefits, we must continue to renew operating licenses,
uprate the power of plants where practical, and continue building
new nuclear facilities. As older fossil units retire and demand
grows, we will require new plants.
Although new nuclear power plants require appreciable upfront
capital investment, the electricity produced by them is affordable,
predictable, and reliable over their 60-year lifespan.
The production cost of existing nuclear plants is approximately 2
cents/kilowatt-hour, lower than any major source, including coal
and natural gas.
Nuclear energy enjoys great cost predictability, especially in
terms of fuel costs. Fuel is only 15% of the operating cost of
a nuclear plant, whereas the price of gas is about 60% of the
operating cost of a gas-fired plant. Consequently, the cost of
electricity from gas plants can change significantly based on
gas prices. We have seen price volatility over past decades and,
even with current supply predictions, uncertainties related to
environmental and production issues remain.
America's Largest Source of CO2
-Free Power
Representing over 70% of the country's emission-free electricity,
nuclear energy is an important hedge against a possible future
tax on carbon emissions and further regulatory constraints on air
emissions and water usage.
Maintaining a balanced energy portfolio and reducing power
plant emissions will require us to build new nuclear plants. Over
the next few years, nuclear energy's contribution to our energy
mix and to our economic well-being could begin to decline with
some plants retiring. For the nuclear sector to remain at its cur76
rent
or an expanded contribution level, we must continue investing
in new facilities today.
In these uncertain economic times, building infrastructure
provides near-term and long-term benefits. New nuclear energy
projects offer more than clean, predictable, reliable, and affordable
power. They also create American jobs; spur local investment;
generate federal, state, and local tax revenues; and
increase our nation's energy security.
At AREVA, we are investing in new energy infrastructure and
new technologies, and taking steps to rebuild a supply chain. We
continue to progress with major U.S. projects such as our Eagle
Rock Enrichment Facility in Idaho and the MOX Fuel Fabrication
Facility in South Carolina, which we are building in partnership
with the Shaw Group. Projects such as these are already creating
jobs, providing energy and industry advancements, and contributing
to regional economies.
New Nuclear Plants Create Jobs, Spur Local Investment
Each new nuclear plant project creates thousands of jobs and
represents billions of dollars of investment. In this vein, AREVA
is still moving steadily toward construction of the first U.S. EPR
reactor. Design certification of the U.S. EPR technology is proceeding
well, and we expect U.S. Nuclear Regulatory Commission
approval to go according to schedule. We are working hard to
build a domestic supply chain to support the construction of new
nuclear facilities.
We are constantly gaining valuable experience from our international
projects that will enable us to build faster and more
economically here. Today AREVA is building four Generation III+
EPR reactors: one in Finland, one in France, and two in China.
The improvements included in the EPR design are based on
decades of experience building and maintaining reactors around
the world. For example, the EPR reactors feature a double containment
structure designed to withstand an aircraft impact.
Layers of diverse and redundant safety systems, combined with
efficient energy production, reduce the long-term uncertainty
associated with ownership and operation.
As an industry, we will carefully examine the experience in
Japan so we can make our designs and operations even safer
and more efficient. At AREVA, we are already developing solutions
aimed at these objectives to help our customers operate
existing plants.
These measures are prudent investments in America's energy infrastructure
as well as our future prosperity. We are grateful for the
Obama Administration and other policymakers' steadfast support
for nuclear energy. But we must continue moving forward with new
investments today so that the next generation of Americans will
continue to reap the benefits of a vibrant nuclear sector and the
predictable, reliable, and economic energy it provides. ■
-Mike Rencheck is chief operating officer of AREVA Inc.
www.powermag.com
POWER | September 2011
http://www.powermag.com
POWER September 2011

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