Nuclear energy can help tackle climate change, but it will cost a bit

The costs of nuclear energy are comparable to those of solar and wind energy, but then nuclear power must always take precedence over the electricity grid and the government must take on a large part of the financial risks. If this does not happen, nuclear energy is more expensive, according to a study by the agencies Berenschot and Kalavasta commissioned by the network operators and the Ministry of Economic Affairs.

Even in a time when almost all attention is paid to corona, thinking about tackling the climate problem does not stop. The implementation of the climate agreement for 2030 is in full swing and network operators believe that the longer term should also be considered. They commissioned the two agencies to investigate what a climate-neutral Netherlands could look like in 2050.

The researchers made four different scenarios (.pdf) and their impact on the landscape (.pdf). The Ministry of Economic Affairs also requested that a nuclear variant (.pdf) be investigated. The various studies were sent to the House of Representatives today.

New nuclear power plants?

The ministry’s mission to also investigate nuclear energy is remarkable. The investigation into the energy scenarios was already underway when the Ministry came up with this question at the end of last year. In a previous similar study, the possibility of new nuclear power plants was not looked into. But “since then, various discussions have shown that there is still a need for a variant with nuclear power plants,” the new report said.

The aim of the research was to see whether the deployment of new nuclear power plants can make the energy transition cheaper. This appears not to be the case in all eight variants examined. Nuclear power plants are expensive to build and, unlike solar and wind energy, also need fuel (enriched uranium or plutonium). Dismantling costs are also higher than for renewable energy.

Still feasible under certain conditions

Until now, a new nuclear power plant has therefore not been financially feasible. But if it is arranged that nuclear energy always takes priority and the government guarantees, this so-called business case could be comparable to that for mainly solar and wind energy.

“In the period when sun and wind have become cheaper, nuclear power stations have become more expensive,” says researcher John Kerkhoven of Kalavasta. This is partly because the current generation of nuclear power stations has more safety requirements than, for example, the nuclear power station at Borssele.

In addition, it was also examined whether a nuclear power plant can be used as a producer of electricity or hydrogen, for periods when the sun does not shine and the wind does not blow. But “sun and wind have become so cheap in recent years that they can afford their own backup,” says Kerkhoven. This means that hydrogen can be made with surplus solar and wind energy, to serve as a backstop if there is no sun and wind.

Need political choices

It was previously agreed that the Netherlands should be climate neutral by 2050. But there are several ways in which that goal can be achieved: much or little use of CO2 storage underground, even more windmills on land or at sea, more or less large solar parks.

“For long-term investments, we need concrete social and political choices; choices that the government must make,” say the network operators. “Structural adjustments to the energy grids are costly and time consuming; timely political choices, translated into consistent and coherent policies, contribute greatly to the affordability of the energy transition.”

The studies show that it matters a great deal how the energy transition is managed. Solar and wind energy play a major role in all scenarios. But if regional plans are mainly drawn up, a lot of heat networks will probably also be built, while more national control means houses will receive electric heat pumps more often, the researchers expect.

Industry

The differences are also large for the industrial sector. In one scenario (with regional management) there is contraction, while in the other industry is growing. The exploration was developed by network operators, in collaboration with industry and other market parties.

The researchers emphasize that it is not necessary to make a choice from one of the scenarios, but that elements from the different scenarios can also be combined.

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