The Nuclear Energy Option in Alberta
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The Nuclear Energy Option in Alberta submitted by Alberta Research Council and Idaho National Laboratory to the Government of Alberta Nuclear Expert Panel on October 1, 2008 The Alberta Research Council Inc. (―ARC‖) and Idaho National Laboratory (―INL‖) submit the following paper in confidence to the Government of Alberta Nuclear Expert Panel (―Expert Panel‖). This paper was prepared as an account of work conducted at the ARC and INL. All reasonable efforts were made to ensure that the work conforms to accepted scientific, engineering, and environmental practices, but ARC and INL make no other representation and give no other warranty with respect to the reliability, accuracy, validity, or fitness of the information, analysis, and conclusions contained in this paper. Any and all implied or statutory warranties of merchantability or fitness for any purpose are expressly excluded. Any use or interpretation of the information, analysis, or conclusions contained in this paper is at the user’s risk. Reference herein to any specified commercial product, process, or service by trade-name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement or recommendation by ARC or INL. EXECUTIVE SUMMARY A range of new generation options is being considered by Albertans to meet future power demand caused by rapid economic and population growth. One option is the construction of one or more nuclear power plants that produce no carbon dioxide (CO2) and require no hydrocarbon-based fuel. Such an installation would be the first in western Canada. Although there are a number of nuclear plants successfully operating in eastern Canada, Alberta’s citizens and government have had little experience with this technology. Albertans need a better understanding of the safety of nuclear power and the long-term disposition of the radioactive waste products associated with nuclear fuels, among other topics. This background paper was commissioned by the Government of Alberta nuclear expert panel to provide an overview of the scientific facts and issues concerning nuclear power plants. It introduces the technical, economic, environmental, and social issues of which Albertans need to be aware. This paper does not provide either technical or policy recommendations to address those issues, nor does it cover the use of nuclear technology for making process heat or for co-generating both heat and power, which are possible applications in the oil sands region. A nuclear power plant would only be built in Alberta if the project owner believes there is a demand for the electricity produced. The power demand is independent of the production technology. Hence, the decision is not just whether to build a nuclear plant, but also between satisfying the power demand by building a nuclear plant or by building equivalently sized power generation facilities based on some other technology. The ability to import power from outside Alberta is limited. Because of the large size of nuclear plants, the most comparable alternative is a coal-fired power plant. As a standard example to illustrate the inputs or outputs of a nuclear reactor system, this paper uses data for a single 800-MWe unit, although some power plants consist of multiple independent units at one site. While a nuclear power plant attracts attention because of the nature of its energy source, many of the systems and local impacts are similar to those of an equally large fossil-fired power plant. Although these plants generate heat in different ways, the way that that heat is used to make steam and then electricity is the same. Once it enters the electrical grid, the electricity from both kinds of plant is indistinguishable. This paper describes the current electricity market and that projected by 2024. It also describes the supply and demand by energy source and the distribution of generation, including a regional evaluation of the transmission system. The current load is characterized by strong growth rate, substantial demand from the industrial and the commercial sectors, and a statistical relationship to gross domestic product (GDP) or population growth. The current generation capacity is characterized by a prevalence of coal-fired and natural gas-fired plants, a high degree of geographic concentration, and an increasing market concentration. Rapidly increasing demand is exerting pressure on the generation system. The 2024 projections indicate substantial demand increases over current levels for both generation and load. Of Alberta’s generating capacity, 88% is fossil-fuelled; 94% of the actual electricity generation in 2007 was from fossil fuel. The generation system is already operating at or near its safe operating limits more often and for longer durations. The transmission system requires upgrading and new lines. Peak demand projections are expected to increase 21%–78% over current levels by 2024, or 1.3%–3.2% per year. Oil sands will contribute significantly to the increased energy demand in Alberta. A dedicated and reliable source of electricity is important to oil sands operation, but this is subject to growing concerns surrounding greenhouse gas (GHG) emissions. The Nuclear Energy Option in Alberta, October 1, 2008 i Three categories of energy technology (fossil fuel, renewable, and nuclear energy) might be used to meet Alberta’s electricity needs. The technology comparison is based upon underlying parameters such as costs, environmental footprint, sustainability, reliability, and capacity. Coal-based electricity production is well established in Alberta. Supercritical pulverized coal technology is currently the technology of choice due to its efficiency. Coal-fired power plants are large scale (400 MW or greater) and are better-suited for base load power. Natural gas-fired power is also common in Alberta. However, uncertainty surrounding natural gas availability and price have an impact on its long term potential, and make it better suited for peak power production. Increasing concern surrounding GHG raises the future importance of carbon capture technology. Three main options are post-combustion capture, oxyfuel combustion, and pre-combustion capture in an integrated gasification combined cycle. All three result in a significant increase in the power production cost. Different alternatives for renewable energy are present in Alberta. Their inherent intermittency, availability, capacity, and cost currently limit the extent of their energy contribution to, and integration in, the Alberta grid system. Four basic types of commercial nuclear power plants are identified as having potential applicability to the province. These have different characteristics such as technology availability, reactor size, requirements for enrichment, heavy-water production, applicability to heat applications, and reactor efficiency. All of these reactors could be available within the next 20 years. The cost of power from a large scale nuclear power plant is similar to that from a coal power plant equipped with CO2 capture. This paper covers the issues surrounding the integration of nuclear power plants in Alberta. The infrastructure needed to establish and operate a nuclear power plant is extensive and will require significant planning. A large portion of the required physical resources can be obtained in Canada but certain components will have to be imported. The needs extend beyond the nuclear reactor itself to waste fuel storage as well as ancillary infrastructure. Additional infrastructure requirements to distribute these resources to the chosen site should also be considered. The deployment of a nuclear power plant is subject to a number of risks involving the technology itself, licensing, cost of construction, financing, construction time, supply infrastructure, cost of fuel, waste disposal, and risks of accident or terrorism. Another major risk to consider is the current uncertainty surrounding future policies and penalties involving GHG emissions since these will significantly affect the economic comparison of nuclear and fossil fuel-based electricity. The integration of any new large-scale power plant may require substantial reinforcement of the transmission system, a consideration that poses a major challenge especially if there is stakeholder opposition. However, this issue is a function of the size of the new generator and is not specific to nuclear units. As a new generator, the nuclear plant operator will have to pay some costs associated with integration into the transmission grid as well as a potentially refundable system contribution fee. The operational and decommissioning phases of a nuclear plant life cycle primarily affect the reliability and the cost of power production. All owners would insist on reliable operation because nuclear power plants are relatively large and costly. The more capital intensive the plant, the more economically harmful will be its unnecessary shutdown. Nuclear plant operation worldwide has improved over the past several decades, in part because of increased sharing of information within the industry. Regulators routinely make it clear that the primary responsibility for safety and operation falls on the plant owner. It is appropriate to inquire into the relevant nuclear industrial experience of any entity undertaking the construction, operation, and eventual decommissioning of nuclear power plants. It is also appropriate to inquire about the support network a new plant would have. If the plant were not a CANDU, there would be foreign expertise, but no