Lee

In his annual State of the State Address on January 31, Tennessee Gov. Bill Lee offered more praise for nuclear energy, after lauding it earlier in the month during a tour of the Tennessee Valley Authority’s Watts Bar nuclear plant

“For decades, East Tennessee has been home to some of the best-kept secrets in nuclear energy and American innovation,” Lee told the state’s General Assembly. “Today, many may not realize that Tennessee derives more power from nuclear energy than from any other source. Recently, I visited the TVA’s Watts Bar nuclear facility, the last nuclear facility to be built in America, to see firsthand how nuclear power keeps our grid dependable even when the weather is not. Nuclear power is clean energy that actually works for the private sector.”

Designing a reactor is complicated but building one may be harder. Even companies that have had lots of practice haven’t always done it well. And all the power reactors in service today were built by companies that had years of experience in other kinds of big steam-electric power plants. In contrast, some of the creative new designs now moving toward commercialization come from start-ups that have never built anything at all. How should they prepare?

The 2021 ANS Annual Meeting brought together three leading chief executive officers from the nuclear industry on June 16 for a discussion centered on the future role of nuclear energy deployment and the challenges of portfolio management during a time of net-zero carbon goals.

The viability of nuclear power ultimately depends on economics. Safety is a requirement, but it does not determine whether a reactor will be deployed. The most economical reactor maximizes revenue while minimizing costs. The lowest-cost reactor is not necessarily the most economical reactor. Different markets impose different requirements on reactors. If the capital cost of Reactor A is 50 percent more than Reactor B but has characteristics that double the revenue, the most economical reactor is Reactor A.

The most important factor is an efficient supply chain, including on-site construction practices. This is the basis for the low capital cost of light water reactors from China and South Korea. The design of the reactor can significantly affect capital cost through its impact on the supply chain. The question is, how can advanced reactors boost revenue and reduce costs?