World Energy Outlook 2006

Current Status of Nuclear Power
Renewed Interest in Nuclear Power
Concerns over energy security, surging fossil-fuel prices and rising CO 2
emissions have revived discussion about the role of nuclear power. Over the
past two years, several governments have made statements favouring
an increased role of nuclear power in the future energy mix and a few have
taken concrete steps towards the construction of a new generation of safe and
cost-effective reactors.
Not all countries see nuclear power as an attractive option, considering that
the risks associated with the use of nuclear power – reactor safety, waste
and proliferation – outweigh the benefits. For those countries open to the
nuclear-power option, this chapter looks at the possible place of nuclear power
in the total generation mix to 2030 and beyond, focusing particularly on the
adequacy of uranium resources and the competitiveness of nuclear power in
electricity markets.
Along with energy efficiency, both on the demand and supply sides, renewable
energy and – in the longer term – CO 2 capture and storage, nuclear power
could help address concerns about over-reliance on fossil-fuelled electricity
generation, especially worries about climate change and increasing dependence
on gas imports:
� Nuclear power is a low-carbon source of electricity. Figure 13.1 shows the low
CO 2 emissions per kWh of electricity produced in those countries with a
high share of nuclear power and renewables in their electricity generation
mix. Operation of one gigawatt of nuclear power generating capacity, if
replacing coal-fired generation, avoids the emission of 5 to 6 million tonnes
of CO 2 per year. Nuclear power plants do not emit any airborne pollutants
such as sulphur dioxide, nitrogen oxides or particulate matter.
� Nuclear power plants can help reduce dependence on imported gas; and
unlike gas, uranium resources are widely distributed around the world. The
Reference Scenario shows that, under current policies, gas-import
dependence will rise in most OECD regions and in key developing countries
by 2030, an increase driven mainly by the power sector.
� Nuclear plants produce electricity at relatively stable costs, because the cost
of the fuel represents a small part of the total production cost; the raw
uranium accounts for about 5% and uranium fuel after treatment for about
15%. In gas-fired power plants, fuel accounts for about 75% of the total
production cost.
Over the past few years, oil, gas and power prices have been high and volatile.
The price of West Texas Intermediate crude oil in the United States hit $78 per
barrel in July 2006. International gas prices averaged $6.13 per MBtu in 2005.
The increase in power prices in most markets arose primarily from these high
344 World Energy Outlook 2006 - FOCUS ON KEY TOPICS
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