Looking at the power grid up close

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Often referred to as “the world’s biggest machine,” the North American electricity grid as a whole is an integrated network of generators and millions of miles of wires that crisscross the United States and Canada.

It snakes across fields, over mountains, through tunnels, along highways, beneath sidewalks, under rivers and seas. If you live anywhere in Canada or the continental United States, this mega-machine “reaches into your home, your bedroom,” as one writer put it, “and climbs right up into the lamp next to your pillow.”

The grid is designed as a hub-and-spoke system, in which large centralized generators supply electricity to thousands of end users. All told, the U.S. grid has about 300,000 miles of high-voltage transmission lines and 5.2 million miles of local distribution lines. When one cable in a network short-circuits, others nearby will automatically pick up the burden. But if the surrounding cables are also overstressed, they too can fail, causing a cascading effect that can knock out major portions of a network.

In recent years, the U.S. power grid has become increasingly prone to such interruptions. Average temperatures have risen, homes have gotten bigger, and so have air-conditioning demands. Thanks to our technology-rich lifestyles and the inefficiency of our buildings and power plants, Americans consume, per capita, at least 50 percent more electricity annually than the citizens of Europe and Japan.

But we don’t have the infrastructure to support our lavish habits. We’ve seen almost no expansion or evolution of the grid that struggles to sustain our skyrocketing demands. Former Energy Secretary Bill Richardson has explained the problem this way: “We’re a major superpower with a third-world electricity grid.” The average age of the equipment that makes up our grid infrastructure is more than forty years, and many components were designed and installed before World War II. If we’re to see a major shift toward greener, more reliable power sources, we need a simultaneous upgrade in grid transmission technology.

I got a firsthand look at the challenges our power system is facing when I climbed inside the New York City grid. Con EdisonÂ’s chief of underground grid maintenance, Dennis Romano, had agreed to accompany me down below with his crew of electrical engineers to explain what I was seeing. A jovial man with a permanent five oÂ’clock shadow, Romano seemed amused if a bit baffled at my excitement over this brief trip.

In spite of what I’d learned about the grid’s fragility, I had a fanciful notion of what I’d encounter: a vast, orderly chamber 50 feet underground containing thousands of gleaming wires all labeled and mapped according to the neighborhoods and buildings they fed, gauges glowing to indicate the volumes of current coursing on each line — as clean and intricate as the innards of the world’s biggest iMac.

Instead, my descent into a manhole on lower Broadway lasted all of 17 feet — and the shallow tunnel I crouched through opened onto a chamber roughly the size of an average walk-in closet. The floor was covered with a murky pond of street runoff, crumbled asphalt, and garbage fragments, and the air was clammy and foul. The walls revealed a gory cross section of the grid: emerging from dozens of cement ducts was a spaghetti-like tangle of grimy wires pulsing with so much electric current I could see them vibrate, like hoses with liquid gushing through them.

The New York City grid encompasses more than 80,000 miles of cable-enough to circle the globe four times. Peel back the sidewalks of Manhattan and youÂ’ll find a larger concentration of copper than anywhere else on the planet-more, in fact, than in the worldÂ’s largest copper mine. All that metal can be found within 15 feet below street level, sandwiched in with water mains, sewage pipes, and telephone lines. (These pipes and tubes are constantly in need of repair, so they have to be placed close to street level for speedy access.) There is no large central chamber where all the wires are organized, labeled, and monitored; instead, there are some 260,000 manholes throughout the city, each one providing access to the wires feeding just a handful of buildings.

Many of these cables are over fifty years old. As the wires age, they degrade under a battery of stresses. The combination of sweltering heat in the summer and freezing cold in the winter causes them to expand, contract, and weaken. The constant vibrations of the city and its underworld-rumbling subways, feet pounding on pavement, incessant traffic-can wreak havoc over time. When water mains break and sewage lines overflow, they can soak and erode grid equipment. When salt is scattered on snowy streets, it often eventually drips into street cracks and manholes, eating away at the cablesÂ’ insulation. Equally common is a nick in a cable from a construction workerÂ’s jackhammer or backhoe.

Any one of these burdens can overstress and shut down a wire. But the biggest challenge facing New York City is its outsized electricity demand, which is growing at a rate of nearly 2 percent a year. That doesn’t sound like much, but it translates to an additional annual load of 200 megawatts-enough to power nearly a quarter million homes or a midsized city. “It’s like moving Albany onto the New York City grid every year,” Con Edison’s president later told me. That’s a big challenge when you have a system as congested as Con Ed’s.

“See what I mean? The grid is running out of room,” Dennis Romano said as we huddled in the dank manhole, gesturing at a mass of wires so dense it was like a Friday afternoon traffic jam at the mouth of the Holland Tunnel. “There’s just no space down here to put more copper.” The lines, he added, can only carry a finite amount of electricity: “You can’t put ten pounds of baloney in a five-pound bag.” Romano was describing gridlock in the most literal sense-the grid in its current form is reaching a physical threshold, meaning it can’t be built out any further.

“At the rate our demands are growing,” Romano said, “we could outgrow the grid in under ten years.” When we ventured back up to street level, I could see why: New York was voraciously guzzling power. Bank machines were whirring, flat-screen monitors were flickering, and an Old Navy store had flung its doors wide open, sending a misty plume of air-conditioning out into the stifling 90-degree heat. Across the way, Banana Republic and Bloomingdale’s were doing the same. “That right there,” said Romano, nodding toward the open doors, “is why the grid gets hammered in summer months. People assume we can air-condition the streets. They just don’t think about it.”

Lou Rana, Con Ed’s president, did offer some encouraging news about the direction of the energy industry today when we discussed his plans to renovate New York City’s complex, aging grid. For nearly two hours, Rana excitedly discussed the “smart grid,” which he described as a “high-tech, super-efficient, ultra-reliable, self-healing,... clean, green electricity machine.”

Con Ed has already been experimenting piecemeal with some components of a smart grid, which Rana mapped out for me, drawing squiggly lines on a whiteboard. HeÂ’s been testing superconductor wires that carry far bigger loads than do the current copper cables and reduce the energy lost in transmission from 10 percent to less than 2 percent.

Rana’s engineers are installing nanosensors that can monitor electrical current flows remotely, allowing grid operators to track and contain power surges before they begin to cascade. Rana is also developing a plan to obtain 20 percent of New York’s City power supply from small-scale distributed power sources—solar panels and clean-burning microplants fueled by natural gas, for instance — installed on apartment and office buildings. This would help address the problem of building big new power plants and transmission lines on extremely limited real estate.

None of these ideas can be implemented on a large-scale basis without a major investment. A full smart-grid conversion would cost tens of billions of dollars for New York City alone. It remains to be seen who, if anyone, will be willing to pay for such a change. New York consumers famously resist rate hikes, and the stateÂ’s coffers are running low. Even with sufficient funds, itÂ’s not clear whether the system could be installed in time before the gridÂ’s demands finally outgrow supply, as ever more of its aging components collapse under pressure. The easier path would be to continue replacing the grid piecemeal., copper wire by copper wire. But this wonÂ’t do in the long run. Without the smart grid, more and bigger blackouts could lie ahead as demand grows in a system with limited capacity for expanded supply.

The United States is expected to see a 29 percent growth in electricity demands between now and 2030. But that number doesnÂ’t take into account a vast new market that could open up: electric vehicles. As hybrid cars are growing in popularity and new plug-in models are soon to be introduced, the futurists of today are envisioning a century in which all transportation is powered by electricity. The whole energy system, they believe, will be unified under the flow of electrons.

This seems almost laughable given the current fragility of the U.S. electricity supply system. How, I wondered, can we confidently move toward an all-electric future if weÂ’re operating on a Third World electricity grid? One way or another, by necessity if not by choice, the archaic system of plants and cables has to be rebuilt. Will it be replaced with the same old twentieth-century fossil fuels, mechanical switches, and copper wires? Or will we opt for a smart grid and usher in a generation of clean, sustainable technologies?

“The mind can not conceive,” said Thomas Edison in 1916, “what man will do in the twentieth century with his chained lightning.” And a lot we did, to be sure.

But now it’s time to start conceiving what we’ll do in the 21st century — and there’s no time to waste.

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Washington State Ferries' Hybrid-Electric Upgrade

Washington State Hybrid-Electric Ferries advance green maritime transit with battery-diesel propulsion, lower emissions, and fleet modernization, integrating charging infrastructure and reliable operations across WSF routes to meet climate goals and reduce fuel consumption.

 

Key Points

New WSF vessels using diesel-battery propulsion to cut emissions, improve efficiency, and sustain reliable ferry service.

✅ Hybrid diesel-battery propulsion reduces fuel use and CO2

✅ Larger vessels with efficient batteries and charging upgrades

✅ Compatible with WSF docks, maintenance, and safety standards

 

Washington State is embarking on an ambitious update to its ferry fleet, introducing hybrid-electric boats that represent a significant leap toward greener and more sustainable transportation. The state’s updated plans reflect a commitment to reducing carbon emissions and enhancing environmental stewardship while maintaining the efficiency and reliability of its vital ferry services.

The Washington State Ferries (WSF) system, one of the largest in the world, has long been a critical component of the state’s transportation network, linking various islands and coastal communities with the mainland. Traditionally powered by diesel engines, the ferries are responsible for significant greenhouse gas emissions. In response to growing environmental concerns and legislative pressure, WSF is now turning to hybrid-electric technology similar to battery-electric high-speed ferries seen elsewhere to modernize its fleet and reduce its carbon footprint.

The updated plans for the hybrid-electric boats build on earlier efforts to introduce cleaner technologies into the ferry system. The new designs incorporate advanced hybrid-electric propulsion systems that combine traditional diesel engines with electric batteries. This hybrid approach allows the ferries to operate on electric power during certain segments of their routes, reducing reliance on diesel fuel and cutting emissions as electric ships on the B.C. coast have demonstrated during similar operations.

One of the key features of the updated plans is the inclusion of larger and more capable hybrid-electric ferries, echoing BC Ferries hybrid ships now entering service in the region. These vessels are designed to handle the demanding operational requirements of the Washington State Ferries system while significantly reducing environmental impact. The new boats will be equipped with state-of-the-art battery systems that can store and utilize electric power more efficiently, leading to improved fuel economy and lower overall emissions.

The transition to hybrid-electric ferries is driven by both environmental and economic considerations. On the environmental side, the move aligns with Washington State’s broader goals to combat climate change and reduce greenhouse gas emissions, including programs like electric vehicle rebate program that encourage cleaner travel across the state. The state has set ambitious targets for reducing carbon emissions across various sectors, and upgrading the ferry fleet is a crucial component of achieving these goals.

From an economic perspective, hybrid-electric ferries offer the potential for long-term cost savings. Although the initial investment in new technology can be substantial, with financing models like CIB support for B.C. electric ferries helping spur adoption and reduce barriers for agencies, the reduced fuel consumption and lower maintenance costs associated with hybrid-electric systems are expected to lead to significant savings over the lifespan of the vessels. Additionally, the introduction of greener technology aligns with public expectations for more sustainable transportation options.

The updated plans also emphasize the importance of integrating hybrid-electric technology with existing infrastructure. Washington State Ferries is working to ensure that the new vessels are compatible with current docking facilities and maintenance practices. This involves updating docking systems, as seen with Kootenay Lake electric-ready ferry preparations, to accommodate the specific needs of hybrid-electric ferries and training personnel to handle the new technology.

Public response to the hybrid-electric ferry initiative has been largely positive, with many residents and environmental advocates expressing support for the move towards greener transportation. The new boats are seen as a tangible step toward reducing the environmental impact of one of the state’s most iconic transportation services. The project also highlights Washington State’s commitment to innovation and leadership in sustainable transportation, alongside global examples like Berlin's electric flying ferry that push the envelope in maritime transit.

However, the transition to hybrid-electric ferries is not without its challenges. Implementing new technology requires careful planning and coordination, including addressing potential technical issues and ensuring that the vessels meet all safety and operational standards. Additionally, there may be logistical challenges associated with integrating the new ferries into the existing fleet and managing the transition without disrupting service.

Despite these challenges, the updated plans for hybrid-electric boats represent a significant advancement in Washington State’s efforts to modernize its transportation system. The initiative reflects a growing trend among transportation agencies to embrace sustainable technologies and address the environmental impact of traditional transportation methods.

In summary, Washington State’s updated plans for hybrid-electric ferries mark a crucial step towards a more sustainable and environmentally friendly transportation network. By incorporating advanced hybrid-electric technology, the state aims to reduce carbon emissions, improve fuel efficiency, and align with its broader climate goals. While challenges remain, the initiative demonstrates a commitment to innovation and underscores the importance of transitioning to greener technologies in the quest for a more sustainable future.

 

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US Approves Rule to Boost Renewable Transmission

FERC Transmission Rule accelerates grid modernization and interregional high-voltage lines, enabling renewable energy integration, load balancing, and reliability to advance net-zero goals while strengthening resilience, capacity expansion, and decarbonization across U.S. regional transmission organizations.

 

Key Points

A federal policy mandating interregional grid planning and cost sharing to expand high-voltage lines for renewables.

✅ Expands interregional high-voltage transmission capacity

✅ Improves reliability, resilience, and load balancing

✅ Aligns cost allocation and long-term planning for renewables

 

On May 13th, 2024, the US took a monumental step towards its clean energy goals. The Federal Energy Regulatory Commission (FERC) approved a long-awaited rule designed to significantly expand the transmission of renewable energy across the nation's power grid, a US grid overhaul that many advocates say was overdue. This decision aligns with President Biden's ambitious plan to achieve net-zero carbon emissions by 2050, with renewable energy playing a central role.

The new rule tackles a critical bottleneck hindering the widespread adoption of renewables – transmission infrastructure. Unlike traditional power plants like coal or natural gas that run constantly, solar and wind power generation fluctuates with weather conditions. This variability poses a challenge for the existing grid, which is not designed to efficiently handle large-scale integration of these intermittent sources, helping explain why the grid isn't 100% renewable today.

The FERC rule aims to address this by promoting the construction of new, high-voltage transmission lines, particularly those connecting different regions, where grid limitations in the Pacific Northwest have highlighted the need for better interregional transfers. This improved connectivity would allow for a more strategic distribution of renewable energy. Imagine solar energy harnessed in the sun-drenched Southwest being transmitted eastward to meet peak demand during hot summer days on the Atlantic Coast.

The benefits of this expanded transmission network are multifaceted. First, it unlocks the full potential of renewable resources by allowing for their efficient utilization across the country, a trend consistent with wind and solar surpassing coal in U.S. generation. Abundant wind power in the Midwest could be utilized on the West Coast, while surplus solar energy from the South could supplement demand in the Northeast.

Second, a more robust grid with a higher capacity for renewables reduces reliance on fossil fuel-based power plants and complements other ways to meet decarbonization goals across sectors. This translates to cleaner air and a significant reduction in greenhouse gas emissions, contributing to the fight against climate change.

Third, a modernized grid with improved long-distance transmission bolsters the nation's energy security. Extreme weather events, a growing concern due to climate change, can disrupt energy production in specific regions. This interconnected grid would provide a buffer, ensuring a more reliable and resilient power supply and helping put regions on the road to 100% renewables even during adverse weather conditions.

The FERC's decision is a win for environmental groups and the renewable energy industry. They see it as a critical step towards a cleaner energy future and a significant driver of job creation in the construction and maintenance of new transmission lines. However, concerns have been raised by some stakeholders, particularly investor-owned utilities. They worry about the potential cost burden associated with building these expansive new lines, and recent reports of stalled grid spending underscore those concerns and the need for efficient cost allocation mechanisms. Striking a balance between efficiency, affordability, and environmental responsibility will be crucial for the successful implementation of this policy.

 

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Energy UK - Switching surge continues

UK Energy Switching Surge sees 600,000 customers change suppliers in October, driven by competition, the Energy Switch Guarantee, and better tariffs, with Electralink's DTN supporting customer switching and Ofgem oversight.

 

Key Points

A rise in UK customers switching electricity suppliers in October, driven by competition and the Energy Switch Guarantee.

✅ 600,000 switches recorded in October

✅ 32% moved to small and mid-tier suppliers

✅ Energy Switch Guarantee assures simple, safe transfers

 

More than 600,000 customers took steps to save on their energy bills this winter by switching electricity provider in October, as forecasts such as a 16% bill decrease in April offer further encouragement, the latest figures from Energy UK reveal.

A third (32 per cent) of those changing providers in October moved to small and mid-tier suppliers.

Regional markets have seen changes too, including Irish electricity price increases that highlight wider cost pressures.

With recent research showing that that nine in ten energy switchers were happy with the process of changing suppliers and with the reassurance provided by the Energy Switch Guarantee - a series of commitments ensuring switches are simple, speedy and safe - and amid MPs proposing price restrictions to protect consumers, more and more customers are now confident when looking to move.

Lawrence Slade, chief executive of Energy UK said: 'Switching continues to surge with over 600,000 customers changing supplier to find a better deal last month. Many more will have made savings by checking they are on the best deal with their current supplier. It only takes a few minutes to do this and with over 55 suppliers across the market, there's never been more competition or choice.'

Around 75 per cent of the market are signatories of the Guarantee. This includes: British Gas, Bulb Energy, E.ON, EDF Energy, First Utility, Flow Energy, npower, Octopus Energy, Pure Planet, Sainsbury's Energy, Scottish Power, So Energy and Tonik Energy.

The switching data is supplied by Electralink who provides a secure service to transfer data between the electricity market participants. The company operates the Data Transfer Network (DTN) which underpins customer switching, meter interoperability and other business processes critical to a competitive electricity market, where knowing where your electricity comes from can support informed choices.

The data referenced in these reports is since our collection of data only and is for electricity only.

These figures do not include internal electricity switching, and statistics on this from the larger suppliers and on Standard Variable Tariffs can be viewed on the Ofgem website, while ministers consider ending the gas-electricity price link to reduce bills.

 

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Ontario Extends Off-Peak Electricity Rates to Provide Relief for Families, Small Businesses and Farms

Ontario Off-Peak Electricity Rate Relief extends 8.5 cents/kWh pricing 24/7 for residential, small business, and farm customers, covering Time-Of-Use and tiered plans to stabilize utility bills during COVID-19 Stay-at-Home measures across Ontario.

 

Key Points

A province-wide 8.5 cents/kWh price applied 24/7 until Feb 22, 2021 for TOU and tiered users to reduce electricity bills

✅ 8.5 cents/kWh, applied 24/7 through Feb 22, 2021

✅ Available to TOU and tiered OEB-regulated customers

✅ Automatic on bills for homes, small businesses, farms

 

The Ontario government is once again extending electricity rate relief for families, small businesses and farms to support those spending more time at home while the province maintains the Stay-at-Home Order in the majority of public health regions. The government will continue to hold electricity prices to the off-peak rate of 8.5 cents per kilowatt-hour, compared with higher peak rates elsewhere in the day, until February 22, 2021. This lower rate is available 24 hours per day, seven days a week for Time-Of-Use and tiered customers.

"We know staying at home means using more electricity during the day when electricity prices are higher, that's why we are once again extending the off-peak electricity rate to provide households, small businesses and farms with stable and predictable electricity bills when they need it most," said Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs. "We thank Ontarians for continuing to follow regional Stay-at-Home orders to help stop the spread of COVID-19."

The off-peak rate came into effect January 1, 2021, providing families, farms and small businesses with immediate electricity rate relief, and for industrial and commercial companies, stable pricing initiatives have provided additional certainty. The off-peak rate will now be extended until the end of day February 22, 2021, for a total of 53 days of emergency rate relief. During this period, and alongside temporary disconnect moratoriums for residential customers, the off-peak price will continue to be automatically applied to electricity bills of all residential, small business, and farm customers who pay regulated rates set by the Ontario Energy Board and get a bill from a utility.

"We extend our thanks to the Ontario Energy Board and local distribution companies across the province, including Hydro One, for implementing this extended emergency rate relief and supporting Ontarians as they continue to work and learn from home," said Bill Walker, Associate Minister of Energy.

 

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Heat Exacerbates Electricity Struggles for 13,000 Families in America

Energy Poverty in Extreme Heat exposes vulnerable households to heatwaves, utility shutoffs, and unreliable grid infrastructure, straining public health. Community nonprofits, cooling centers, and policy reform aim to improve electricity access, resilience, and affordable energy.

 

Key Points

Without reliable, affordable power in heatwaves, health risks rise and cooling, food storage, and daily needs suffer.

✅ Risks: heat illness, dehydration, and indoor temperatures above 90F

✅ Causes: utility shutoffs, aging grid, unpaid bills, remote areas

✅ Relief: cooling centers, aid programs, weatherization, bill credits

 

In a particular pocket of America, approximately 13,000 families endure the dual challenges of sweltering heat and living without electricity, and the broader risk of summer shut-offs highlights how widespread these pressures have become across the country. This article examines the factors contributing to their plight, the impact of living without electricity during hot weather, and efforts to alleviate these hardships.

Challenges Faced by Families

For these 13,000 families, daily life is significantly impacted by the absence of electricity, especially during the scorching summer months. Without access to cooling systems such as air conditioners or fans, residents are exposed to dangerously high temperatures, which can lead to heat-related illnesses and discomfort, particularly among vulnerable populations such as children, the elderly, and individuals with health conditions, where electricity's role in public health became especially evident.

Causes of Electricity Shortages

The reasons behind the electricity shortages vary. In some cases, it may be due to economic challenges that prevent families from paying utility bills, resulting in disconnections. Other factors include outdated or unreliable electrical infrastructure in underserved communities, as reflected in a recent grid vulnerability report that underscores systemic risks, where maintenance and upgrades are often insufficient to meet growing demand.

Impact of Extreme Heat

During heatwaves, the lack of electricity exacerbates health risks and quality of life issues for affected families, aligning with reports of more frequent outages across the U.S. Furthermore, the absence of refrigeration and cooking facilities can compromise food safety and nutritional intake, further impacting household well-being.

Community Support and Resilience

Despite these challenges, communities and organizations often rally to support families living without electricity. Local nonprofits, community centers, and government agencies provide assistance such as distributing fans, organizing cooling centers, and delivering essentials like bottled water and non-perishable food items during heatwaves to alleviate immediate hardships and improve summer blackout preparedness in vulnerable neighborhoods.

Long-term Solutions

Addressing electricity access issues requires comprehensive, long-term solutions. These may include policy reforms to ensure equitable access to affordable energy, investments in upgrading infrastructure in underserved areas, and expanding financial assistance programs to help families maintain uninterrupted electricity service, in recognition that climate change risks increasingly stress the grid.

Advocacy and Awareness

Advocacy efforts play a crucial role in raising awareness about the challenges faced by families living without electricity and advocating for sustainable solutions. By highlighting these issues, community leaders, activists, and policymakers can work together to drive policy changes, secure funding for infrastructure improvements, and promote energy efficiency initiatives, drawing lessons from Canada's harsh-weather grid exposures that illustrate regional vulnerabilities.

Building Resilience

Building resilience in vulnerable communities involves not only improving access to reliable electricity but also enhancing preparedness for extreme weather events. This includes developing emergency response plans, educating residents about heat safety measures, and fostering community partnerships to support those in need during crises.

Conclusion

As temperatures rise and climate impacts intensify, addressing the plight of families living without electricity becomes increasingly urgent. By prioritizing equitable access to energy, investing in resilient infrastructure, and fostering community resilience, stakeholders can work towards ensuring that all families have access to essential services, even during the hottest months of the year. Collaborative efforts between government, nonprofit organizations, and community members are essential in creating sustainable solutions that improve quality of life and promote health and well-being for all residents.

 

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Cost of US nuclear generation at ten-year low

US Nuclear Generating Costs 2017 show USD33.50/MWh for nuclear energy, the lowest since 2008, as capital expenditures, fuel costs, and operating costs declined after license renewals and uprates, supporting a reliable, low-carbon grid.

 

Key Points

The 2017 US nuclear average was USD33.50/MWh, lowest since 2008, driven by reduced capital, fuel, and operating costs.

✅ Average cost USD33.50/MWh, lowest since 2008

✅ Capital, fuel, O&M costs fell sharply since 2012 peak

✅ License renewals, uprates, market reforms shape competitiveness

 

Average total generating costs for nuclear energy in 2017 in the USA were at their lowest since 2008, according to a study released by the Nuclear Energy Institute (NEI), amid a continuing nuclear decline debate in other regions.

The report, Nuclear Costs in Context, found that in 2017 the average total generating cost - which includes capital, fuel and operating costs - for nuclear energy was USD33.50 per megawatt-hour (MWh), even as interest in next-generation nuclear designs grows among stakeholders. This is 3.3% lower than in 2016 and more than 19% below 2012's peak. The reduction in costs since 2012 is due to a 40.8% reduction in capital expenditures, a 17.2% reduction in fuel costs and an 8.7% reduction in operating costs, the organisation said.

The year-on-year decline in capital costs over the past five years reflects the completion by most plants of efforts to prepare for operation beyond their initial 40-year licence. A few major items - a series of vessel head replacements; steam generator replacements and other upgrades as companies prepared for continued operation, and power uprates to increase output from existing plants - caused capital investment to increase to a peak in 2012. "As a result of these investments, 86 of the [USA's] 99 operating reactors in 2017 have received 20-year licence renewals and 92 of the operating reactors have been approved for uprates that have added over 7900 megawatts of electricity capacity. Capital spending on uprates and items necessary for operation beyond 40 years has moderated as most plants are completing these efforts," it says.

Since 2013, seven US nuclear reactors have shut down permanently, with the Three Mile Island debate highlighting wider policy questions, and another 12 have announced their permanent shutdown. The early closure for economic reasons of reliable nuclear plants with high capacity factors and relatively low generating costs will have long-term economic consequences, the report warns: replacement generating capacity, when needed, will produce more costly electricity, fewer jobs that will pay less, and, for net-zero emissions objectives, more pollution, it says.

NEI Vice President of Policy Development and Public Affairs John Kotek said the "hardworking men and women of the nuclear industry" had done an "amazing job" reducing costs through the institute's Delivering the Nuclear Promise campaign and other initiatives, in line with IAEA low-carbon lessons from the pandemic. "As we continue to face economic headwinds in markets which do not properly compensate nuclear plants, the industry has been doing its part to reduce costs to remain competitive," he said.

"Some things are in urgent need of change if we are to keep the nation's nuclear plants running and enjoy their contribution to a reliable, resilient and low-carbon grid. Namely, we need to put in place market reforms that fairly compensate nuclear similar to those already in place in New York, Illinois and other states," Kotek added.

Cost information in the study was collected by the Electric Utility Cost Group with prior years converted to 2017 dollars for accurate historical comparison.

 

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