Could phase-outs harm Asia’s nuclear energy growth?

from Hong Kong Business (July - September 2022)

HK CEOs less optimistic about economic growth

INDUSTRY INSIGHT: NUCLEAR POWER Could phase-outs harm Asia’s nuclear energy growth?

The region is expected to bring 30GW in electricity per year with 32 reactors under construction.

Investments in the nuclear sector are driven by large Asian countries (Photo: Power plant in Tianjin, China) Commercial nuclear power is sometimes viewed by the general public as a dangerous or unstable process based on the previous global nuclear accidents. This can be minimised by sharing factbased information about nuclear energy through social media and efforts to educate the public on the actual pros and cons of harnessing nuclear energy.

The policymakers can also make use of advancements in technologies to extend the lifetime of the aging plants which could be an economically feasible option to maximise the output.

What is the role of nuclear energy in the clean energy transition? Should it be considered as ‘green’?

Nuclear plants generate electricity through fission, without any fossil fuel combustion. Having the lowest land requirements of the lowcarbon energy sources can generate power 24/7 unlike wind and solar.

Although it requires high capital cost upfront, nuclear operations can be cost-competitive with renewables over the long run.

Many countries have committed to increasing the share of power from nuclear energy to meet the Paris Agreement targets. But the political and economic environment, and the public lack of support, could make the prospect of accomplishing these ambitious objectives difficult. However, there is a need for innovation in replacing plants reaching the end of their lives, and adding new plants to the existing fleet.

On the positive side, nuclear power has been identified as a clean, low-carbon power source that has a long lifespan. On the flip side, it continues to be subject to concerns regarding the handling and disposal of spent radioactive fuel, fears of nuclear calamity due to plant core meltdown, and worries about the weaponisation aspects of radioactive materials.

When France, the US, Sweden, and Russia shut down their 40-yearold nuclear reactors, the global nuclear capacity inevitably lost 5.4 gigawatts (GW). Now that plans to phase-out nuclear reactors in some Asian countries hang in limbo, will the region also risk losing a portion of its capacity? A report from Rystad Energy says otherwise— phase-outs will barely scathe Asia’s nuclear capacity growth.

“Many countries in Asia are ramping up the contribution from nuclear power so the nuclear phase-out plans or to reduce the dependency on nuclear power will not have a significant effect in the near term,” Karan Satwani, Rystad Energy, Analyst, Energy Services, told Hong Kong Business.

Next to Europe with more than 170 nuclear reactors in operation, Asia leads the growth of installed capacity. The region has about 140 nuclear reactors and is the main driver of growth with 32 nuclear reactors in the works that will generate 30GW in electricity annually. This is largely driven by China, which has at least 150 new nuclear power plants planned in the next 15 years.

In an exclusive interview, Satwani discussed further the growth potential of nuclear energy in the region as well as continuing challenges that it faces.

What markets are driving the investment in nuclear energy and reactors in Asia?

Investments in the nuclear sector are driven by large Asian countries like China. The government bodies in Asia are planning to increase the share of nuclear power. China aims to have 70 gigawatt electrical (GWe) of operational nuclear power capacity by 2025, with ambitions to reach about 180GWe of operational capacity by 2035.

What are possible challenges to the growth of nuclear energy that could emerge in the region?

The long time lag between planning and operating a nuclear reactor could be one of the main reasons that might affect the targets set by various government bodies. This might be due to financing of high capital costs, licensing and regulatory approvals, coupled with long lead times and construction delays, amongst other factors.