The report from the Energy Futures Initiative released on August 15, 2017 by former Energy Secretary Ernest Moniz calls for greater federal investment in the US huclear-power industry. The report calls for expanded government loan guarantees, tax incentives and research on nuclear technology.
Nuclear power makes up about 20 percent of U.S. electricity generation, but the industry has been struggling. Five nuclear plants, with a combined capacity of 5 gigawatts, have closed early since 2013, and an additional six plants are scheduled to shutter early over the next nine years. Of the two new nuclear plants under construction in the U.S., one was halted by Scana Corp. in July 2017 and backers of the other, Southern Co.’s Vogtle plant in Georgia, are seeking additional aid from the federal government.
Westinghouse Electric Co., the nuclear technology pioneer that is part of Toshiba Corp., went bankrupt in March, after it hit delays with its AP1000 reactors at each of those plants. After it declared bankruptcy, Westinghouse — whose technology is used in more than half the world’s nuclear power plants — said it shifted its focus from building reactors to helping dismantle them.
The U.S. needs companies and engineers that can both build and run nuclear enterprises…. The U.S. Navy’s reactors require supplies and qualified engineers, and American nuclear scientists fill vital national security roles, it said. Companies, such as BWX Technologies Inc. of Lynchburg, Virginia manufacture nuclear components for both the commercial nuclear industry and naval reactors. If the commercial business collapses, that may mean one less company able to process highly enriched uranium, according to the report.
“A shrinking commercial enterprise will have long term spillover effects on the Navy supply chain, including by lessened enthusiasm among American citizens to pursue nuclear technology careers,” according to the report.
In addition to extending a tax credit for new nuclear power and the Energy Department’s loan guarantee program, the report says the federal government could also direct the Federal Energy Regulatory Commission to “place a greater emphasis on the national security importance of nuclear power and its associated supply chain.”
Excerpts from Moniz: Nuclear Power’s Woes Imperil US National Security, Bloomberg, Aug. 15, 2017