Friday, 27 April 2012

Online Survey Results

On April 2, we have started an online survey that aimed to gauge the level of public awareness regarding power generation in Malaysia. There were a total of 10 questions separated into two parts; 3 questions for Part I and the next 7 for Part II. 


We have received exactly 76 responses by the time we collected the results on April 27, 2012. The followings are the summary of responses for each question asked. 


Summary of responses for Part I - Question #1.
From 76 responses, only 3 of them were not aware of the carbon dioxide and other greenhouse gases emissions coming from the current Malaysian power generation industry. Here we can stipulate that maybe some of our respondents were from outside of Malaysia.

Summary of responses for Part I - Question #2.
Summary of responses for Part I - Question #3.
Based on Question #2 and #3, from 76 responses, only 5 of them were not aware of how today's electricity demand is highly determined by the fossil fuel supply, and 34 out of 76 responses believed that current methods of generating electricity wouldn't be able to meet the ever rising electricity demand in Malaysia. Noted here that most of them agreed that Malaysia has to come up with another way to generate electricity as we need to stop depending on fossil fuels.

In Part II, questions (from Question #4 to #8) were constructed in a way that would promote better understanding among Malaysians on why we should start considering nuclear power as one of the alternatives in power generation industry. 

Summary of responses for Part II - Question #4.
Summary of responses for Part II - Question #5.
Summary of responses for Part II - Question #6.
Summary of responses for Part II - Question #7.
Summary of responses for Part II - Question #8.
Question #9 was about getting to know how respondents viewed the idea of nuclear power generation in Malaysia. It appears that nuclear waste disposal was rated most as 'highly relevant' concern as compared to many others.

Summary of responses for Part II - Question #9.
Question #10 was the tiebreaker; now that respondents had seen the bright side of nuclear power and had understood why nuclear power is another alternative worth to be looked upon, respondents were asked on whether they would be supportive towards the development of nuclear power plant in Malaysia. 

Summary of responses for Part II - Question #10.
Clearly, 54 out of 76 responses agreed to support the efforts.



This online survey was powered by SurveyMonkey.com.

Sunday, 22 April 2012

Nuclear Energy Future Trends


World builds new nuclear power plants

Azerbaijan, Baku, April 16

Ellada Khankishiyeva, Trend Analytical Centre Head

Despite the fact that relating to the accident at the Japanese Fukushima nuclear power plant seriously undermined people's confidence in nuclear power up to the point of abandoning functioning nuclear projects, some countries on the contrary, want to build their own nuclear power plants.
According to the World Nuclear Association, of those contemplating to begin construction in the next five years, 29 countries of the world plan to begin construction in the next five years of 154 nuclear power blocks, but in the long term (construction will begin in the next 15 years), 36 countries want to increase this number to 342.

Among these countries is Turkey which is resolved to building a number of nuclear power plants. Thus, Minister of Energy and Natural Resources Taner Yildiz said Turkey is in talks to build nuclear power plants with the three countries on three different models. Turkey has already signed an agreement with China, South Korea and Russia on the peaceful use of nuclear energy. The first Turkish nuclear power plant will be built on the Akkuyu site.

This means that Turkey will be the second country in the Middle East to have a nuclear power plant. Today, the Iranian Bushehr nuclear power plant is the one in Iran and throughout the Middle East. It will operate at full capacity (1,000 MW) in the early summer of this year and will produce from 720 to 730 megawatt hour which is 75 per cent of the final potential of the station.

Of the former Soviet Union countries, Belarus, Kazakhstan, Lithuania have plans to build nuclear power plants, while Ukraine and Russia, which already have 15 and 33 nuclear power plants, respectively, wish to increase their number.

The only justification that the number of nuclear power plants in the world is growing, even in view of their potential danger, is the ever growing demand for electricity, the demand for which is growing year by year. And nuclear power plants currently are among the main suppliers of cheap electricity for industry and domestic consumption.

The operational principle of nuclear power stations is very simple - this is a common conversion of thermal energy into electrical energy, but at the same time nuclear power is a global security threat to humans and the environment.

At present, many scholars hardly question the relevance of the use of atomic energy. Today the third generation of reactors is being built, even in earthquake zones and yet there is wariness about the nuances of the individual stations under specific conditions.
For example, Metsamor NPP in Armenia which does not meet modern standards in Armenia, built in 1976, is located in a seismically active zone. That's why it becomes a source of threat to the region. This was repeatedly stated by Azerbaijan and Turkey. Turkey is going to address the IAEA with the proposal to close the Armenian nuclear power plant motivating it by security reasons. The Turkish side is planning to initiate the closure of all stations with an expired use.

The international community led by the U.S. and the EU also exerts a significant pressure on the Armenian government to withdraw the existing nuclear power plant in Metsamor from operation. Mankind has survived major accidents after which some areas of the earth have become unfit to live. According to official data in Belarus, the most affected by the Chernobyl disaster was in neighbouring Ukraine, where more than 2.5 per cent of the population are registered for cancer, but Armenia is in no hurry to abandon its nuclear power plants.

Once again the excuse is that at this point in the world there is no alternative to nuclear power plants since nuclear energy is a highly efficient form of electricity generation and alternative schemes are too expensive and have very high overhead costs, including environmental ones. Early decline in demand for electricity is also not expected; hence the interest in nuclear power in the world is will not soon fade.


Source : Nuclear Energy Future Trends, from http://en.trend.az/capital/analytical/2014779.html

International collaboration to improve safety


International collaboration to improve safety



There is a great deal of international cooperation on nuclear safety issues, in particular the exchange of operating experience under the auspices of the World Association of Nuclear Operators (WANO) which was set up in 1989.  In practical terms this is the most effective international means of achieving very high levels of safety through its four major programs: peer reviews; operating experience; technical support and exchange; and professional and technical development. WANO peer reviews are the main proactive way of sharing experience and expertise, and by the end of 2009 every one of the world's commercial nuclear power plants had been peer-reviewed at least once.  Following the Fukushima accident these have been stepped up to one every four years at each plant, with follow-up visits in between, and the scope extended from operational safety to include plant design upgrades. Pre-startup reviews of new plants are being increased.  See also: paper on Cooperation in Nuclear Power Industry.

The IAEA Convention on Nuclear Safety  (CNS) was drawn up during a series of expert level meetings from 1992 to 1994 and was the result of considerable work by Governments, national nuclear safety authorities and the IAEA Secretariat. Its aim is to legally commit participating States operating land-based nuclear power plants to maintain a high level of safety by setting international benchmarks to which States would subscribe.

The obligations of the Parties are based to a large extent on the principles contained in the IAEA Safety Fundamentals document The Safety of Nuclear Installations. These obligations cover for instance, siting, design, construction, operation, the availability of adequate financial and human resources, the assessment and verification of safety, quality assurance and emergency preparedness.
The Convention is an incentive instrument. It is not designed to ensure fulfillment of obligations by Parties through control and sanction, but is based on their common interest to achieve higher levels of safety. These levels are defined by international benchmarks developed and promoted through regular meetings of the Parties. The Convention obliges Parties to report on the implementation of their obligations for international peer review. This mechanism is the main innovative and dynamic element of the Convention.  Under the Operational Safety Review Team (OSART) program dating from 1982 international teams of experts conduct in-depth reviews of operational safety performance at a nuclear power plant. They review emergency planning, safety culture, radiation protection, and other areas. OSART missions are on request from the government, and involve staff from regulators, in these respects differing from WANO peer reviews.

The Convention entered into force in October 1996. As of September 2009, there were 79 signatories to the Convention, 66 of which are contracting parties, including all countries with operating nuclear power plants.

The IAEA General Conference unanimously endorsed the Action Plan on Nuclear Safety that Ministers requested in June. The plan arises from intensive consultations with Member States but not with industry, and is described as both a rallying point and a blueprint for strengthening nuclear safety worldwide. It contains suggestions to make nuclear safety more robust and effective than before, without removing the responsibility from national bodies and governments. It aims to ensure "adequate responses based on scientific knowledge and full transparency". Apart from strengthened and more frequent IAEA peer reviews (including those of regulatory systems), most of the 12 recommended actions are to be undertaken by individual countries and are likely to be well in hand already.
 
In relation to Eastern Europe particularly, since the late 1980s a major international program of assistance was carried out by the OECD, IAEA and Commission of the European Communities to bring early Soviet-designed reactors up to near western safety standards, or at least to effect significant improvements to the plants and their operation. The European Union also brought pressure to bear, particularly in countries which aspired to EU membership.

Modifications were made to overcome deficiencies in the 11 RBMK reactors still operating in Russia. Among other things, these removed the danger of a positive void coefficient response. Automated inspection equipment has also been installed in these reactors. 

The other class of reactors which has been the focus of international attention for safety upgrades is the first-generation of pressurised water VVER-440 reactors. The V-230 model was designed before formal safety standards were issued in the Soviet Union and they lack many basic safety features. Four are still operating in Russia and one in Armenia, under close inspection.
Later Soviet-designed reactors are very much safer and have Western control systems or the equivalent, along with containment structures.





Sources : Safety of Nuclear Power Reactors, from website http://www.world-nuclear.org/info/inf06.html

Saturday, 21 April 2012

Dr. Michihiro Furusaka


Dr. MICHIRO FURUSAKA, PhD, is a professor from the Graduate School of Engineering at Hokkaido University, Japan, working in the field of neutron instrumentation and optics. He is a word-renowned quantum Science and researcher and his research area includes condensed matter physics, biophysics, chemical physics and nuclear engineering. Currently, he is developing a new mini-focusing small angle neutron scattering instrument. Dr. Furusaka talks about the potential of the quantum beam physics and how it can be applied. 

  • Light (laser), X-ray, y-ray, electron beam, neutron beam - all quantum beams
  • Neutron scattering. Transmission electron magnifier, x-ray diffraction - all applications of quantum technology
  • X-ray, proton radiation therapy; medical application, all applications of quantum technology

Friday, 20 April 2012

Career as Nuclear Engineer



Nuclear Engineer

JOB SCOPE
The first Nuclear Engineer is started 1957 when the first commercial nuclear power plant (NPP) began operating.  Nuclear engineer is a part of project team where combining technical and scientific skills.  Nuclear engineering projects consist of design and construction of nuclear reactors and power plants, development and production weapons, evaluation of environmental and ecological research, health physics, or industrial safety [1].   Most of nuclear engineers are been assigned to monitor the operation of nuclear power plants to ensure efficiency and conformity to safety standards.


Nuclear engineer should provide with sufficient knowledge likes mathematics, economics, and principles of engineering.  In term of practicality, the nuclear engineer use computer for simulation in problem analysis.
The nuclear engineer tasks as below:

  1. Administration
  2. Projects/Technical works
  3. Supervise other workers
  4. Preparation of budget
  5. Sales representatives
  6. Consultation 
  7. Advice the government 

Working hours for nuclear engineer is 40 hours a week.  However, the engineer must willing to work whatever days of shifts are necessary to meet production schedules [1].




SALARY/WAGES
The nuclear engineer salaries are depending to the location and employer.
Below are the salaries for nuclear engineer in federal civil service (California Occupational Guide) [1]:


  1. Nuclear Engineer with bachelor's degree, enter at the GS-5 level ($17,686 to $22,993 a year) or at the GS-7 level ($26,000 a year)
  2. Nuclear Engineer with master's degree, the beginning engineer enter at the GS-7 level ($21,900 to 28,500 yearly)
  3. If three or five years experience in private industry, an engineer might enter at the GS-12 ($38,900 to $50,000 a year) or GS-13 level ($46,200 to $60,100 a year)
TABLE 1 The Median Salary and Projected Job Growth [2]


There are also few benefits as a nuclear engineer likes paid vacations, holidays, and sick leave, medical, dental, and vision insurance, and retirement plans [1].  In some cases, the employer may pay the tuition for employees who take additional job related courses.

References:

  1. Nuclear Engineer.  1995.  California Employment Development Department, from World Wide web:  http://www.calmis.ca.gov/file/occguide/engnuc.htm
  2. Science Careers: Nuclear Engineer.  2012.  Science Buddies, from World Wide web: http://www.sciencebuddies.org/science-fair-projects/science-engineering-careers/Energy_nuclearengineer_c001.shtml




Security of Nuclear Power Plant


Building a Nuclear Power Plant (NPP) is not an easy task.  The engineers need to concern on the security aspect of NPP.  Specifically physical security.  The incident of 9/11 gives warning to the operation of NPP that the structure must be strong enough to protect the nuclear reactor from been exploded.  In any situations, the NPP must be ready to facing with any threats.  Few factors are been highlighted for the security aspect of NPP, which are:

  1. Aircraft impact on fuel housing structures
  2. Effects of fire
  3. Land/water delivered explosions
  4. Assessment guidelines
  5. Standoff distances for structures, human injury
  6. Standoff distances for spent fuel casks
  7. Operational prevention measures.
Below are the comparison World Trade Center (WTC) and typical NPP structures:

FIGURE 1 Comparison of WTC and typical NPP structures [1]

In Aircraft Crash Analysis, there are three types which are penetration, scabbing, and perforation.  If there is penetration crash, means the integrity containment is maintained.  However, if there are scabbing and perforation occurred, the integrity of reactor containment cannot be maintained any more.


FIGURE 2 Aircraft Crash Analysis [1]

Reference:
  1. Monograph by Assoc. Prof. Dr. Nasri A. Hamid.  Reactor Safety. Universiti Tenaga Nasional (UNITEN).  Semester 3 2011/2012.

 

Monday, 9 April 2012

Did You Know?

                                       

On December 2, 1942, Leo Szilard, Enrico Fermi and their colleagues has successfully achieved the first man made and controlled the nuclear chain reaction. What makes it interesting was, it was made in University of Chicago's Stagg Field's squash court.

So, on the same date during the year 2011, nuclear energy was celebrating its 69th years of anniversary. On December 11 1954, Enrico Fermi played major role in establishing the American Nuclear Society (ANS) which gave big impact to the nations until today.



Bill Gates sees future in nuclear energy



Bill Gates opinion on investing nuclear power plant through Terra Power.

Sunday, 8 April 2012

Nuclear Insurance







            Congress has established a system of “no-fault” insurance to provide liability coverage in the event of a major reactor accident. This insurance program, initiated under the Price-Anderson Act, combines commercial insurance and self-insurance by the nuclear industry. Large nuclear plants are required to have the maximum amount of liability insurance that is commercially available, currently $200 million. In addition, each licensed reactor is liable for a $75.5 million assessment to provide funds in the event of a major accident at a plant in the United States. (No reactor would be assessed more than $10 million in any one year.)

            With over 100 commercial nuclear power plants in the United States, the combination of commercial insurance and industry self insurance exceeds $8 billion. This is the total liability limit for an accident under the Price-Anderson Act and no claims are required to be paid in excess of this amount. Congress, however, will consider the need for providing an additional source of funds should $8 billion prove inadequate.

            The Price-Anderson Act provides for liability insurance coverage for actual damages incurred by anyone affected by a major reactor accident. Besides the coverage for offsite public liability claims, the NRC requires that utilities maintain $1 billion in onsite property damage insurance to provide funds to deal with cleanup of the reactor site after an accident.


Reference :
U.S. Nuclear Regulatory Commission from website http: /www.n / rc.gov/

Nuclear Energy Is Our Friend






This video shows that, there is need we consider nuclear energy as additional resources for power distribution. We can't depend on one resources only, since there are others alternative resources should be taken into consideration. Nuclear energy is safe and its friend to us!


Reference: Youtube

Nuclear Forum Sesslon III: The Economics of Nuclear Power Generation

The purpose of this forum is to help Utahns learn about the economics of nuclear power as they relate to public policy. Topics of discussion included nuclear power's cost of electricity generated, a comparison of nuclear power and other generating assets over their useful lives, and whether or not nuclear power's economic profile works for Utah's electric needs.



Economic Specialists:



Cheri D. Collins serves as general manager of external affairs and nuclear liaison at Southern Nuclear Company, where she focuses on the first new commercial nuclear power plant in the U.S. in more than 30 years -- including impacts of the project on the community, such as the creation of technical college programs to prepare the required workforce.

Michael T. Hogue is a research analyst at the University of Utah's Bureau of Economic and Business Research, where he focuses on the economics of energy and natural resources and applied econometrics. His research areas have included the economics of fossil fuels such as coal, conventional oil and gas, and unconventional sources of oil such as oil sands and oil shale.

Edward Kee
is vice president of National Economic Research Associates (NERA), where he provides strategic advice to companies and governments on the nuclear power and electricity industries. He advises on industry strategy, project procurement, due diligence, financing and loan guarantees, nuclear fuel cycle, and national nuclear infrastructure development.



Source: YouTube.com

External Costs

Another interesting cost to be highlighted when discussing nuclear power is the external costs. The external costs are defined as those actually incurred in relation to health and the environment and quantifiable but not built into the cost of the electricity.


The report of a major European study of the external costs of various fuel cycles, focusing on coal and nuclear, was released in mid 2001 - ExternE. It shows that in clear cash terms nuclear energy incurs about one tenth of the costs of coal. If these costs were in fact included, the EU price of electricity from coal would double and that from gas would increase 30%. These are without attempting to include the external costs of global warming.


The European Commission launched the project in 1991 in collaboration with the US Department of Energy, and it was the first research project of its kind "to put plausible financial figures against damage resulting from different forms of electricity production for the entire EU". The methodology considers emissions, dispersion and ultimate impact. With nuclear energy the risk of accidents is factored in along with high estimates of radiological impacts from mine tailings (waste management and decommissioning being already within the cost to the consumer). Nuclear energy averages 0.4 euro cents/kWh, much the same as hydro, coal is over 4.0 cents (4.1-7.3), gas ranges 1.3-2.3 cents and only wind shows up better than nuclear, at 0.1-0.2 cents/kWh average.  NB these are the external costs only. *Latest Exchange Rates: 1 Euro = 4.01580 Malaysian Ringgit.
Source: World Nuclear Association.

Comparing the Economics of Different Forms of Electricity Generation


It is important to distinguish between the economics of nuclear plants already in operation and those at the planning stage. Once capital investment costs are effectively “sunk”, existing plants operate at very low costs and are effectively “cash machines”. Their operations and maintenance (O&M) and fuel costs (including used fuel management) are, along with hydropower plants, at the low end of the spectrum and make them very suitable as base-load power suppliers. This is irrespective of whether the investment costs are amortized or depreciated in corporate financial accounts – assuming the forward or marginal costs of operation are below the power price, the plant will operate. 
US figures for 2008 published by NEI show the general picture, with nuclear generating power at 1.87 c/kW.
                                                            
US Electricity Production Costs 

Note: the above data refer to fuel plus operation and maintenance costs only, they exclude capital, since this varies greatly among utilities and states, as well as with the age of the plant. 
 A Finnish study in 2000 also quantified fuel price sensitivity to electricity costs:
The impact of fuel costs on electricity generation costs
 
These show that a doubling of fuel prices would result in the electricity cost for nuclear rising about 9%, for coal rising 31% and for gas 66%. Gas prices have since risen significantly.
The impact of varying the uranium price in isolation is shown below in a worked example of a typical US plant, assuming no alteration in the tails assay at the enrichment plant.
Effect of U Price 
Doubling the uranium price (say from $25 to $50 per lb U3O8) takes the fuel cost up from 0.50 to 0.62 US cents per kWh, an increase of one quarter, and the expected cost of generation of the best US plants from 1.3 US cents per kWh to 1.42 cents per kWh (an increase of almost 10%). So while there is some impact, it is comparatively minor, especially by comparison with the impact of gas prices on the economics of gas generating plants. In these, 90% of the marginal costs can be fuel. Only if uranium prices rise to above $100 per lb U3O8 ($260 /kgU) and stay there for a prolonged period (which seems very unlikely) will the impact on nuclear generating costs be considerable. *Current exchange rate is 1 U.S. dollar = 3.06449537 Malaysian ringgits.
Nevertheless, for nuclear power plants operating in competitive power markets where it is impossible to pass on any fuel price increases (ie the utility is a price-taker), higher uranium prices will cut corporate profitability. Yet fuel costs have been relatively stable over time – the rise in the world uranium price between 2003 and 2007 added to generation costs, but conversion, enrichment and fuel fabrication costs did not followed the same trend.
For prospective new nuclear plants, the fuel element is even less significant (see below). The typical front end nuclear fuel cost is typically only 15-20% of the total, as opposed to 30-40% for operating nuclear plants.
Source: World Nuclear Association

The Cost of Fuel


From the outset the basic attraction of nuclear energy has been its low fuel costs compared with coal, oil and gas-fired plants. Uranium, however, has to be processed, enriched and fabricated into fuel elements, and about half of the cost is due to enrichment and fabrication. In the assessment of the economics of nuclear power allowances must also be made for the management of radioactive used fuel and the ultimate disposal of this used fuel or the wastes separated from it. But even with these included, the total fuel costs of a nuclear power plant in the OECD are typically about a third of those for a coal-fired plant and between a quarter and a fifth of those for a gas combined-cycle plant. The US Nuclear Energy Institute suggests that for a coal-fired plant 78% of the cost is the fuel, for a gas-fired plant the figure is 89%, and for nuclear the uranium is about 14%, or double that to include all front end costs.
 
In March 2011, the approx. US $ cost to get 1 kg of uranium as UO2 reactor fuel (at current spot uranium price):
Uranium:8.9 kg U3O8 x $146
US$ 1300
Conversion:7.5 kg U x $13
US$ 98
Enrichment:7.3 SWU x $155
US$ 1132
 
Fuel fabrication:per kg
US$ 240
 Total, approx:
US$ 2770
At 45,000 MWd/t burn-up this gives 360,000 kWh electrical per kg, hence fuel cost: 0.77 c/kWh. 
*Current exchange rate is 1 U.S. dollar = 3.06449537 Malaysian ringgits.
Fuel costs are one area of steadily increasing efficiency and cost reduction. For instance, in Spain the nuclear electricity cost was reduced by 29% over 1995-2001. This involved boosting enrichment levels and burn-up to achieve 40% fuel cost reduction. Prospectively, a further 8% increase in burn-up will give another 5% reduction in fuel cost.
Uranium has the advantage of being a highly concentrated source of energy which is easily and cheaply transportable. The quantities needed are very much less than for coal or oil. One kilogram of natural uranium will yield about 20,000 times as much energy as the same amount of coal. It is therefore intrinsically a very portable and tradeable commodity.
The fuel's contribution to the overall cost of the electricity produced is relatively small, so even a large fuel price escalation will have relatively little effect (see below). Uranium is abundant.
There are other possible savings. For example, if used fuel is reprocessed and the recovered plutonium and uranium is used in mixed oxide (MOX) fuel, more energy can be extracted. The costs of achieving this are large, but are offset by MOX fuel not needing enrichment and particularly by the smaller amount of high-level wastes produced at the end. Seven UO2 fuel assemblies give rise to one MOX assembly plus some vitrified high-level waste, resulting in only about 35% of the volume, mass and cost of disposal.


Source: World Nuclear Association Website - The Economics of Nuclear Power Plant.

Recent Economics Performance of a Nuclear Power Plant


A quarter of nuclear plants in the world today have recorded capacity factors of more than 90%, with almost two-thirds of these plants recording better than 75% of capacity factors. This suggests a near-maximum plant utilisation, given that most nuclear plants have to shut down every 18 to 24 months for refuelling/maintenance. Despite this, majority of operating nuclear plants have been upgraded to increase their output. Even with fewer nuclear plants being built today compared to in the 1970s and 1980s, plants currently in operation around the world are generating more electricity than in the past, due to their upgraded output capacities.


In addition to improved economics arising from the upgraded plant capacities, the performance of most operating nuclear plants have also been further improved through better nuclear fuel design based on the use of higher uranium enrichment levels. This resulted in better nuclear fuel utilization.


In most cases, nuclear power is more cost competitive than other forms of electricity generation, except where there is direct access to low-cost fossil fuels. According to the World Nuclear Association, coal is, and will probably remain, economically attractive in countries such as China, the USA and Australia with abundant and accessible domestic coal resources as long as carbon emissions are cost-free. Gas is also competitive for base-load power in many places, particularly using combined-cycle plants, though rising gas prices have removed much of the advantage.


Nuclear energy is, in many places, competitive with fossil fuels for electricity generation, despite relatively high capital costs and the need to internalise all waste disposal and decommissioning costs. If the social, health and environmental costs of fossil fuels are also taken into account, the economics of nuclear power are outstanding.


Source: TNB Website - Think Nuclear, Think Green; and World Nuclear Association Website - The Economics of Nuclear Power 

Economics of Nuclear Power Plant

There are at least four types of costs linger around the implementation of a new nuclear power plant. These costs are basically:

  1. Capital costs
  2. Production costs
  3. Levelised costs
  4. Decommissioning and Waste Management costs
Of course there are some other additional costs, but at this point, the stated four are the most prominent.

Capital Costs

Economically speaking, nuclear plant is indeed a highly capital intensive technology. If other factors are discounted, nuclear plants do not appear as palatable as other generation sources since big bucks have to be forked out. Actual nuclear power generation & capital costs vary considerably depending on the location, country and where the plants were built.

Techno-economics studies carried out for Tenaga Nasional Berhad (TNB) - Korea Electric Power Corporation (KEPCO) Nuclear Power Pre-Feasibility Study has concluded that there is a big range of costs associated with nuclear plants. According to IEA/NEA study, typically, 1 unit of 1000MW nuclear plant’s overnight cost ranges between USD2,000/kW to USD4,500/kW. The capital cost of a coal plant ranges between USD1,000/kW to USD1,500/kW. Meanwhile, a gas plant mostly ranges between USD400 to USD800/kW. Nuclear plant has the highest overnight construction costs. Nuclear plant construction costs are generally higher, compared to coal or gas-fired plants, because of higher level of technology, sophistication of equipment, quality of material & quality assurance standards.

Production Costs

On the other hand, operation wise, nuclear plants appear to be more favourable compared to other sources due to its lower operating costs. Once the plants are commissioned, variable or operating costs are minor. Despite the highest capital cost and Operations & Maintenance (O&M) costs among other sources, overall production cost for a nuclear plant is still the lowest. In fact, nuclear power plants have achieved the lowest production costs between coal, natural gas and oil since 2001. Production costs are the O&M and fuel costs of a power plant. Fuel costs make up 26% of the overall production costs of nuclear power plants. Fuel costs for coal, natural gas and oil, however, make up more than 80% of the production costs. Observe figure below for breakdown of production costs between various generating sources.

Fuel as a percentage

Doubling of fuel costs will not affect the production costs due to minor percentage of fuel cost portion. As compared to gas and coal plants, nuclear plants need refuelling only once in every 15-24 months. Hence, nuclear plants are not subject to fuel price volatility like natural gas, coal and oil power plants. The graph below shows the effect of doubling the costs of fuel.

cost barchart

In addition, fuel costs are one area of steadily increasing efficiency and cost reduction. For instance, in Spain, nuclear electricity cost was reduced by 29% over 1995-2001. The success is attributed to boosting enrichment levels and burn-up to achieve 40% fuel cost reduction. Prospectively, a further 8% increase in burn-up will give another 5% reduction in fuel cost.

Levelised Costs

Levelised cost is another important factor in determining and comparing the economic cost of energy produced by a nuclear plant with similar base-load alternatives. Levelised cost is the minimum price at which a technology option produces electricity. It is an economic assessment of the cost of the technology over its lifetime which includes initial investment, operations and maintenance, cost of fuel and cost of capital. Levelised costs vary accordingly with figures used for discount rate, fuel price assumption, plant life, construction period as well as capacity factor. Based on the TNB-KEPCO Nuclear Power Pre-Feasibility study, by using certain assumptions for parameters mentioned above, the cost is as follows:


Economic Levelised Cost of Energy (sen/kWh)
Nuclear
(Case I)
Nuclear (Case II)
Conventional Coal
Gas Combined Cycle
Without Carbon Tax
17.2
10.9
15.8
17.9
With Carbon Tax (USD 10/tCO2)
17.2
10.9
17.6
18.7


From the table, in comparison with coal and gas plants, the economic levelised cost of energy from nuclear is almost comparable to coal, and 9% lower than gas with natural gas at economic market price. Note that with added tax on carbon, the economic levelised cost of energy from nuclear plant is lower than both alternative and nuclear is economically feasible based on the assumptions in the Case I and Case II. Case I uses the nuclear capital costs of USD4,000/kW while Case II uses the nuclear capital cost of USD2,300/kW. Nuclear becomes more economically favourable when climate change mitigation method such as carbon tax is considered.

Decommissioning and Waste Management Costs

Another cost associated with nuclear plants is decommissioning costs. For nuclear power plants, any cost figure normally includes spent fuel management, plant decommissioning and final waste disposal. These costs, while usually external for other technologies, are internal for nuclear power (i.e. they have to be paid or set aside securely by the utility generating the power, and the cost passed on to the customer in the actual tariff). Decommissioning costs are about 9-15% of the initial capital cost of a nuclear power plant. But when discounted, they contribute only a few percent to the investment cost and even less to the generation cost. In the USA, they account for no more than 5% of the cost of the electricity produced. Total cost for spent fuel management and final nuclear or radioactive waste disposal, or back-end costs of the nuclear fuel cycle usually accounts for an additional 10% of the nuclear electricity cost. However, if the spent fuel is to be directly disposed of, instead of being reprocessed to extract the unused uranium and plutonium produced in routine nuclear power plant operation, the costs may be less.

Source: TNB Website - Think Nuclear, Think Green.
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