Nuclear Energy in 2013:Status and Outlook

Briefing for Czech Technical University

Scott Peterson, Senior Vice PresidentNuclear Energy Institute

March 11, 2013

Today’s Briefing• Benefits of nuclear energy• Enhancing nuclear plant safety• Used nuclear fuel management• Short- and long-term outlook for

nuclear energy

NEI’s Role Supporting Industry

Nuclear Energy: A Solid Value Proposition

Clean Air Compliance

Value

Grid Stability

Forward Price

Stability

Fuel and Technology

Diversity

Anchor the Local

Community: Jobs, Tax Base

Nuclear Energy’s Value Proposition U.S. Nuclear Plant Capacity Factor (Percent)

2012 Trends• 10% of electric

capacity produces 20% of U.S. electricity

• Highest capacity factor of any power source

• Consistently low production costs, lower than natural gas and coal

• Growing recognition of energy security/ national security benefits

Sources: Energy Information Administration, Nuclear Regulatory Commission

89.6% in 200691.8% in 200791.1% in 200890.5% in 200991.2% in 201088.9% in 201186.4% in 2012 (est.)

89.2% without Crystal River 3, Fort Calhoun and San Onofre

Consistently High Safety Performance

• Nuclear energy is safe. Fleet safety performance is consistently high and remained so during 2012

• Major events are rare; most measures of safety focus on lesser, precursor events that are resolved

• Most recent report from the NRC’s Industry Trend Program: No significant adverse trends in industry safety performance

Response to the Fukushima Accident

NRC Top Requirements

• Enhance ability to maintain cooling and containment integrity during a severe event

• Enhance spent fuel pool instrumentation• Re-evaluate potential seismic and flooding hazards• Ensure reliable and accessible hardened containment

vents• Re-evaluate emergency communications systems

and staffing levels for multi-reactor events

Industry’s FLEX Approach Enhances Safety• FLEX is a system of comprehensive, tailored safety

measures to respond to extreme events• 67 sites around the country maintain backup portable

safety equipment- More portable, backup safety equipment being added at all 65

plant sites to respond to natural events- Two regional response centers being developed and equipped

to provide another layer of backup equipment

• More than 1,500 pieces of equipment added• FLEX approach is being emulated by industry in

other countries

National Network for Equipment Sharing

Perceived Safety of Nuclear Power Plants

Bisconti Research, Inc. with GfK Roper survey of 1,000 U.S. adults, Feb. 8-10, 2013

• Thinking about the nuclear power plants that are operating now, how safe do you regard these plants? Please think of a scale from "1" to "7," where "1" means very unsafe and "7" means very safe. The safer you think they are, the higher the number you would give.

Favorability to Nuclear Energy

Bisconti Research, Inc. with GfK Roper survey of 1,000 U.S. adults, Feb. 8-10, 2013

• Overall, do you strongly favor, somewhat favor, somewhat oppose, or strongly oppose the use of nuclear energy as one of the ways to provide electricity in the United States?

Safely Managing Used Nuclear Fuel

• Spent fuel stored at reactor sites awaiting U.S. Department of Energy management

• Yucca Mountain repository project licensing application review suspended in 2010

• Blue Ribbon Commission investigates new path toward responsible stewardship

• Meanwhile, U.S. government is paying damages and courts are considering lawsuits related to license review and tax on consumers

Used Fuel Management Policy Update

• Early stages of developing consensus on how to restructure program

• Industry endorses:- Complete Yucca Mountain licensing- Implement consent-based siting for

consolidated storage facility- Develop new management entity

with access to funds necessary to complete mission

- Develop permanent disposal facility (at Yucca Mountain or elsewhere)

New Nuclear Development

New U.S. Reactor Projects

• Five reactors under construction- Watts Bar 2, online in 2015- Vogtle 3 & 4 (AP1000), online in 2017, 2018- Summer 2 & 3 (AP1000), online in 2017, 2018

Vogtle AP1000 Project in Georgia

Crews at the largest construction project in Georgia’s history prepare Vogtle 3 for 6-foot-thick concrete basemat

Summer AP1000 Project in South Carolina

Containment vessel: lower head and rings

Rebar placement at Summer 2 excavation pit

Global Market Leadership

• Westinghouse has built 25 reactors in the EU, 4 AP1000s are being built in China, 4 in the U.S.

• Modular construction techniques allow for distribution of in-country jobs and concurrent assembly

• U.S. nuclear technology is a strategic element of U.S. foreign policy: export technology and safety culture

• AP1000 expansion in global markets could create additional markets, jobs for Czech-based suppliers and service providers

Questions?