Systems for Change: Nuclear Power Vs Energy Efficiency + Renewables
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enewables? R SYSTEMS FOR CHANGE: NUCLEAR POWER VS. ENERGY EFFICIENCY+RENEWABLES? uclear Power vs. Energy Efficiency+ uclear Power N By Antony Froggatt with Mycle Schneider Nuclear power as a “bridging technology”? On windy and low- strategies? To what extent is the unit size co-responsible for struc- consumption days the energy demand in Germany is already tural overcapacities and thus a lack of incentives for efficiency? Systems for Change: covered to a large extent by the wind energy supply. As the How do government grants/ subsidies stimulate long-term deci- output of existing nuclear power stations (as well as the big coal- sion-making? Will large renewable power plants reproduce fired power stations) is not reduced at short notice for economic the same system effects as large coal/nuclear plants? The present reasons, the surplus energy has to be exported to other countries report presents the basic situation and raises questions that at a loss. There is method in this madness. Many systemic issues urgently need to be addressed. It is obvious that nuclear power have not been thoroughly investigated yet when it comes to com- did not lead to broad-scale and just access to energy services patibility or incompatibility of the centralized nuclear approach in the countries that opted for nuclear energy. But is a nuclear versus the decentralized efficiency+renewables strategy. What strategy actually counterproductive for the development of a clean- are the consequences for grid development or how do choices energy service future based on efficiency+renewables? There is on grid characteristics influence power generation investment strong evidence that this is the case. Rue d’Arlon 15, -1050 Brussels, Belgium T +32 2 743 41 00 F 32 2 743 41 09 E [email protected] W www.boell.eu PUBLICATION SERIES ON ECOLOGY Systems for Change: Nuclear Power vs. Energy Efficiency+Renewables? by Antony Froggatt with Mycle Schneider Paper prepared for the Heinrich Böll Foundation March 2010, updated in August 2010 “We know the country that harnesses the power of clean, renewable energy will lead the 21st century”. President Barack Obama, State of the Union Address, February 2010 Hypothesis Continued investment in nuclear power, in particular new nuclear power plant projects, constitutes a significant barrier for the necessary shift toward a sustainable and intelligent energy-services economy based on energy efficiency and renewable energy sources. With the support of the Heinrich-Böll-Stiftung Published by the Heinrich-Böll-Stiftung, European Union, Brussels Printed in Belgium, September 2010 © The authors, the Heinrich-Böll-Stiftung, European Union, Brussels All rights reserved Coordination and final editing: Annett Waltersdorf Print production: Micheline Gutman Cover picture: © thinkstockphotos.com/ Colllection Hemera Some rights reserved for the pictures of pages 10, 21 and 46. They are attached to the following Creative Commons license: http://creativecommons.org/licenses/by-sa/2.0/ D/2010/11.850/6 This publication can be ordered at: Heinrich-Böll-Stiftung, European Union, Brussels 15 Rue d’Arlon B-1050 Brussels Belgium T (+32) 2 743 41 00 F (+32) 2 743 41 09 E [email protected] W www.boell.eu CONTENTS Preface: Nuclear Energy – a Dead End 5 Introduction 7 Overview and Trends 10 Energy demand and the impact of a carbon- and resource-constrained world 10 Transforming the energy-supply options 11 Historic and projected development of renewables 12 Historic and envisaged development of nuclear power 18 Comparison of nuclear to renewables 19 Systemic Issues 21 The French centralized system 21 The German approach: Nuclear phase-out and renewables expansion 23 Spanish renewables hitting the current ceiling? 25 A new approach 25 The Timing of Investment 28 Imperative of rapid climate change action 28 Lead times for scaling up new technologies, experiences and expectations 29 Nuclear power 29 Renewables 32 Opportunity Costs 35 Research and development 36 Investment costs 38 Infrastructure and grids 41 Market mechanisms 43 Conclusions 46 FIGURES AND TABLES Figure 1: Growth in Global Energy Demand 12 Figure 2: New Financial Investment in Clean Energy by Sector: 2004-2009 (US$bn) 13 Figure 3: Global Growth of Renewable Energy in the Power Sector 13 Figure 4: Global Electricity and Hydropower Production (TWh) 15 Figure 5: Accumulative Global Wind Power Capacity (MW) 16 Figure 6: Installed Capacity of Wind Power Plants in 2008 (MW) 16 Figure 7: World Installed Concentrating Solar Thermal Power Capacity 1980-2007 (MW) 17 Figure 8: World Annual Solar Cell Production 1998-2009 (MW) 17 Figure 9: World Nuclear Reactors and Capacity 1954-2010 (GW) 19 Figure 10: Net Additions to Global Electricity Grid from New Renewables 20 and Nuclear 1990-2010 (in GW) Figure 11: Electricity Production from Non-Fossil Fuel Sources 20 Figure 12: Greenhouse Gas Emissions Due to Final Consumption in France 23 Figure 13: Negative Electricity Prices on the German Power Exchange 25 4 SYSTEMS FOR CHANGE:NUCLEAR POWER VS. ENERGY EFFICIENCY+Renewables? Figure 14: Investment Cost Evolution (“Learning Curve”) of US Nuclear Power Plants 31 Figure 15: Investment Cost Evolution (“Learning Curve”) of French Nuclear Power Plants 31 Figure 16: Technology Learning Curves 33 Figure 17: Changing Investment in Low-Carbon Energy Sectors 36 Figure 18: National Research and Development Budgets in OECD Countries (US$mil) 37 Figure 19: Technological Breakdown of OECD Energy Research 38 and Development Budgets (1974-2008) Figure 20: Estimated Carbon Abatement Costs in the UK in 2020 (£/tC) 40 Figure 21: Exelon 2010 Carbon Abatement Cost Estimates (in US$/t of CO2) 41 Table 1: Construction Time of Nuclear Power Plants Worldwide 30 Table 2: Electricity Fuel Source Cost Projections in 2020 33 Preface 5 PREFACE: NUCLEAR ENERGY – A DEAD END Anyone following the statements expressed new nuclear power stations are built particularly from time to time about the renaissance of nu- where the government and the energy industry clear energy could get the impression that the form an unholy alliance. number of new nuclear plants was increasing at an immense and steady rate. In fact, more recent Up to now, nuclear power plants have been statistics show 60 plants in the process of being funded by massive public subsidies. For Germany built, the majority in China and others in Russia, the calculations roughly add up to over 100 bil- India, South Korea and Japan. The USA is only lion Euros and this preferential treatment is still shown as having one actual building project. going on today. As a result the billions set aside However, this list (the VGB Power Tech) includes for the disposal of nuclear waste and the disman- numerous ancient projects that were never com- tling of nuclear power plants represent a tax-free pleted and are therefore de facto building ruins. manoeuvre for the companies. In addition the liability of the operators is limited to 2.5 billion Moreover, there are at the present time pro- Euros – a tiny proportion of the costs that would posals for about 160 new nuclear power plants result from a medium-sized nuclear accident. All up to the year 2020, 53 of these in China alone things considered nuclear energy proves to be and 35 in the USA, followed by South Korea and just as expensive as it is risky. Russia. In Europe, the UK heads the list with eight proposed new projects, followed by Italy, In addition to the routine arguments about Switzerland, Finland, Rumania and Lithuania. nuclear energy, there are some new ones. Firstly, France, that would like to bless the world with the danger of nuclear proliferation is growing in new nuclear power stations, is itself only plan- proportion to the number of new nuclear power ning one new plant. Most European states are not stations all over the world. There is no insurmount- entertaining any concrete nuclear plans. able division between the civil and military use of this technology in spite of the efforts on the part As a matter of fact the number of nuclear pow- of the International Atomic Energy Agency (IAEA) er plants in the world is continually decreasing. to regulate this. The most recent example is Iran. At the present time there are still 436 reactors in At the end of the day anyone who does not want operation. In the next 15 to 20 years more ageing to be regulated cannot be forced to do so. With plants will go offline than new ones coming into the expansion of nuclear energy there is a grow- operation. By no means will all declarations of ing necessity to build reprocessing plants and fast intent be implemented. The more energy markets breeders in order to produce nuclear fuel. Both give are opened up to free competition, the smaller rise to the circulation of plutonium leading in turn the chances are for nuclear energy. to the creation of huge amounts of fissile material capable of making bombs – a horror scenario! The costs for new plants are also explod- ing. For example, the building cost of the new Secondly, an extension of the life span of ex- nuclear power plant in Finland’s Olkiluoto has isting nuclear energy stations, and even more so already increased from 3 to around 5.4 billion the building of new plants, would act as a massive Euros although not even the shell of the building brake on the development of renewable energies. is standing yet. In addition, there are the unsolved The claim that nuclear energy and renewable problems of waste disposal and the high suscep- energies complement each other is a myth since tibility of the technology to failure. Today, no not only do they compete for a meagre amount privately run energy conglomerate risks building of investment capital and power-lines but at the a new nuclear power station without government same time nuclear plants limit the growth po- subsidies and guarantees.