Nuclear Energy

Uranium-fueled nuclear energy is rapidly re-gaining global acceptance as a clean, reliable alternative to such dirty-burning fossil fuels as coal and oil. In a twin bid to combat global climate change and to keep up with soaring demand for electricity, countries are rushing to build nuclear power plants.

There are currently 440 nuclear reactors in operation that combined generate about 16% of the world’s electricity. Another 25 are under construction, 38 are on order and 115 are proposed.

France meets almost 80% of its energy needs with a fleet of 58 nuclear reactors and more planned. Japan currently has 55 operating commercial nuclear power plants that supply about a third of the country’s energy. It hopes to have 11 more plants operational or under construction by 2010.

More than 40 developing countries have recently approached United Nations officials to express interest in starting nuclear power programs, and China alone is planning to build 30 new plants in the next 15 years - a venture that will consume an estimated $50 billion in capital. In total, the country may require as many as 200 plants by 2050.

Uranium, an important raw material in nuclear power generation, can be continuously provided from stable countries like Canada and Australia, which account for over 50% of the current world supply. In this sense, nuclear energy is far different from oil for which energy consuming countries depend heavily on the unstable Middle East, Venezuela and parts of Africa. Uranium fuel itself has a long life span. Once loaded into the reactor, it does not have to be replaced for one year. Refined fuel, once traded, may have two years before loaded into a reactor. Uranium is also a very concentrated source of energy – one tonne of uranium produces the same electricity output as 20,000 tonnes of coal.

The recent amendment on the energy bill backing up the investment on Nuclear will boost further planning.

The economy of nuclear power generation ranges widely depending on conditions including construction costs, fuel purchase cost (uranium), operation and maintenance costs, construction lead time and capacity utilisation. According to World Energy Outlook 2007 assessment, nuclear power generation under realistic assumptions regarding the unit construction cost is economically superior to coal thermal power generation, the cheapest of the non-nuclear electricity sources.