Although the nuclear power industry could hardly be referred to as an “emerging energy market”, the fact remains that it has been 30 years since our country was actively involved in the construction of nuclear power plants. Ergo, I’ll classify this market as “re-emerging”…possibly.
The Nuclear Regulatory Commission (NRC) less than two months ago, and with little fanfare and press, approved the design of Westinghouse’s AP1000 nuclear reactor. The AP1000 (nominal 1100 MW unit) is touted by Westinghouse as “simply more advanced than other nuclear power plant technologies available today in the worldwide commercial marketplace.” The AP1000 is a pressurized water reactor (PWR), designed so that the core stays inside of the reactor vessel during a severe accident. In other words…no China Syndrome. As a former power plant builder (fossil and nuclear), I remember the old reactor building containment domes of concrete and steel containment vessel inside. The new AP1000 has a totally different look, primarily due to the rooftop passive containment cooling system (a big tank). In case of a shutdown situation, water in the containment cooling tank gravity drains automatically and cools the top and sides of the steel containment vessel. Less visible innovations include: 50% fewer valves; 35% fewer safety grade pumps; 80% less pipe; 45% less seismic building volume; and 85% less cable.
It is expected that the NRC will issue combined construction and operating licenses (COL) shortly for two new AP1000 units each at Southern Company’s Units 3 and 4 in Vogtle, GA and SCANA’s Virgil C. Summer Nuclear Generating Station, Units 2 and 3. The cost of Vogtle 3 and 4 is estimated at $14.5 billion. Virgil C. Summer 2 and 3 are estimated to cost $9.8 billion, plus transmission facility and financing costs. With the cost totaling well “north” of $10 billion for a two-unit, 2200 MW facility, nuclear power still remains a costly proposition in the U.S. Projected online dates for Virgil C. Summer 2 and 3 are 2016 and 2019 respectively. Vogtle 3 and 4 projected online dates are 2016 and 2017 respectively.
If this generation of regulators, owners, designers, builders and other stakeholders involved in the development of highly complex, safety-sensitive nuclear power stations can bring their projects in on-budget and within schedule, they will be far more successful than the previous generation of nuclear power plant developers/builders. I remain cautiously optimistic.
Dave Hall
Executive Vice President Corporate Development
