NextEra Energy takes dim view of uneconomical small modular reactors
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Nuclear energy likely will supply only a small fraction of the 900 GW the U.S. needs to add by 2040 to keep up with demand, and newer technologies such as small modular reactors remain uneconomical, NextEra Energy (NYSE:NEE) (NEP) CEO John Ketchum said this week.
“There are only a few nuclear plants that can be recommissioned in an economic way,” Ketchum said during the company’s Q3 earnings conference call, “but even with a 100% success rate on those recommissionings, we would still only meet less than 1% of that [new] demand.”
NextEra (NEE) (NEP) had been expected to announce a deal to restart the Duane Arnold nuclear power plant in Iowa during the call despite potential challenges such as competition with regional wind resources, Jefferies analysts had said.
The anticipated news did not happen, but Ketchum said Duane Arnold could be among the few nuclear plants that could reopen and operate economically.
Ketchum said he is “not bullish” on small modular reactor technology, according to UtilityDive.com, and the company’s in-house team dedicated to SMRs so far has not drawn favorable conclusions about the technology.
The CEO also questioned the availability of nuclear fuel in the U.S., adding that SMRs remain “very expensive” even as the cost of renewable energy continues to fall.
“We’re prioritizing other generation resources at this time. Renewables are here for the long haul,” Ketchum said.
Meanwhile, the Nuclear Regulatory Commission held an initial public meeting with Constellation Energy (CEG) on Friday over its plans to restart the Three Mile Island nuclear plant in Pennsylvania.
Constellation (CEG), which aims to restart the 835 MW Unit 1 by 2028, plans to sell the energy generated by the reactor to Microsoft.
No retired reactor has been restarted so far; the Palisades nuclear plant in Michigan also is in the process of being resurrected, and the NRC revealed it does not see any challenges with that plant coming back online.