Wednesday, April 27, 2016

Nuclear Costs are Down and Performance is Up … Again

Michael Purdie
The following is a guest post by NEI's Michael Purdie.

In 2015, total generating costs for U.S. nuclear generation declined to $35.50/MWh from $36.35/MWh, a two percent decrease (2015 dollars).  Total generating costs are the “all-in” costs that include fuel, capital, and operating expenses.

As the table below shows, the costs decreased roughly evenly between fuel ($0.31/MWh), capital ($0.22/MWh), and operations ($0.33/MWh).   While the costs declined in 2015, performance improved.  The nuclear industry operated at 92.2% capacity factor, which was an increase from 2014 (91.7%) and 2013 (89.9%).

The nuclear industry is fighting to be valued properly in the electricity markets.  Not only do nuclear plants provide electricity 24 hours a day, 7 days a week, they provide clean energy, grid reliability, price stability, and fuel diversity.  Each of these attributes provides value that is not always priced into the market.  In a challenging economic environment, the industry is working to lower its cost profile while maintaining safe and efficient performance.

Recently, the nuclear industry and NEI has undertaken a program called Delivering the Nuclear Promise.  The goal is to reduce total generating costs across the industry by 30%.  In taking a holistic look at costs through Delivering the Nuclear Promise, the nuclear industry is building upon improvements shown over the last three years to accelerate nuclear energy’s competitiveness in electricity markets.

No comments: