Future prospects

An aspect of vital concern related to the future perspectives of nuclear power is the impact of deregulation of the electricity market and privatisation of electricity utilities. The electricity sector has changed rapidly and dramatically during the last decade, marked by the introduction of competition and privatisation in the electricity generation sector of many countries, after many years of monopolistic public services and regulated markets.

Changing technology, public sector financial pressures, and increased competition in other economic sectors are some of the causes of these changes that affect the management of all generators, whether in developed, developing countries, or economies in transition. The details of particular impacts vary from country to country and the degree of change that is required differs. However, the basic trend of market changes and the required adjustments by power companies have been remarkably consistent. 

In this context nuclear generation must compete for market favour with other fuels and generating technologies: natural gas, coal, hydro-electricity and renewables. These are all variously placed with regard to cost and risk, the two most critical commercial considerations.  How these two factors are managed will determine the relative advantages of using nuclear power in the future.


There is also a need for the application of financial analysis and liability management for decommissioning and waste disposal, particularly in the face of increasingly stringent regulatory and political requirements. Economic common sense, efficient cost management, a degree of flexibility in meeting standards and an appreciation of the costs of uncertainty and of political and regulatory change must all be cultivated. 

Nuclear energy - world-wide - is able and ready to compete with other energy sources in an open, deregulated electricity market. Existing nuclear power plants are extremely well positioned to compete in deregulated markets, on the basis of their largely amortised capital costs and relatively low variable costs.
Nuclear power offers considerable environmental advantages compared to alternative mainstream energy sources, and is the only energy source that has already 'internalised' the vast majority of its 'external' costs - those costs, such as environmental impact costs, that are not directly passed on to the consumer.

The biggest future challenge for the nuclear industry will be to convince investors of the case for nuclear new-build in a fully deregulated market. Nuclear plants - like hydroelectric plants - have relatively high capital costs, and investors therefore need to be persuaded of the advantages of projects with relatively long payback periods. Growing awareness of nuclear energy's environmental benefits, combined with the need to ensure long-term security of supply could play a key role in the years to come.