2023 will build on these successes, and here’s five things we’re looking out for in the new year.
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The Path to Deployment
We’re seeing demand grow for new nuclear both to supply electricity as well as power applications beyond the grid. Globally, countries are focused on decarbonization and energy security and seeing nuclear as a critical tool to accomplish these goals. From South Korea to the UK, and from India to Poland, countries across the world are committing to new builds. In the U.S., an NEI survey shows that member utilities see a role for more than 90 gigawatts of nuclear power in support of their decarbonization goals, which translates to about 300 new small modular reactors (SMRs)—and this is a conservative estimate. In the new year, we will see the industry working towards deploying these new advanced technologies, including in communities that are facing the announced closure of coal-fired power plants, which have the infrastructure and workforce needed to host a next-generation nuclear plant.
In Georgia, we expect to see the Vogtle Power Plant Unit 3 come online in early 2023, which will deliver clean, safe, reliable and affordable energy to Georgia Power’s 2.7 million customers. Once operating, all four units will power 1 million homes and businesses.
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Building the Industry’s Workforce
As the hunger for nuclear energy grows, so does demand for deeper expertise, hands-on experience, and engineering talent. Thankfully, the worldwide reckoning with climate change has fostered a new generation of workers eager to turn their talents toward the clean energy transition. Academic and career training programs across the country are preparing the next generation for jobs in nuclear energy, which provides clean, around-the-clock power and high-paying, long-lasting employment that anchors careers and communities.
A just energy transition means bringing these jobs into traditionally underserved communities while propelling the United States to a cleaner economy. It also means leveraging the existing workforce and retraining highly-skilled fossil fuel workers. In 2023, we will look out for the expansion of academic clean energy curriculums, apprenticeship and trade school options, retraining programs, and more.
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Increased Interest in Nuclear Power Financing
Brookfield Asset Management published a white paper in September, recognizing a “new dawn for nuclear power,” and this past year, we’ve seen a new eagerness amongst investors for nuclear fund strategies.
We’re also seeing a trend of increasing private investments in nuclear. Earlier in the year, NuScale Power completed their merger with Spring Valley Acquisition Corp. to become the world’s first publicly traded SMR technology company. U.S. nuclear power company, Westinghouse Electric, was sold to Brookfield Renewable Partners and Cameco in a $7.9 billion deal. TerraPower recently announced a $750 million fundraise, rounding out the top 10 venture capital deals made in the third quarter of this year, and in December, SMR developer X-energy went public in a $2 billion deal.
All of these actions signal to investors how ripe the investment opportunity is within the nuclear energy space, and this comes at a time when companies are increasingly committing to the UN’s 24/7 Carbon-Free Energy Impact. Nuclear energy is critical to these commitments, as it produces around-the-clock carbon-free energy. Look out for more signals from the financial community that nuclear power is a sustainable investment.
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Utilizing Public Investment
The Inflation Reduction Act unleashed an unprecedented opportunity for increased public-private investment in nuclear energy. The legislation included a Production Tax Credit (PTC) for existing nuclear plants, a clean electricity PTC and Investment Tax Credit for new zero-emissions facilities, and a partial investment in establishing a reliable supply of the High Assay Low Enrichment Uranium (HALEU) fuel needed for many next-generation nuclear plants. It also supports nuclear energy by expanding the Department of Energy’s loan guarantee abilities, creating a PTC for hydrogen production, and including an extension of the Advanced Energy Project Credit program.
In the new year, the industry will look for ways to utilize these credits in order to both preserve the existing fleet and also build new technologies that can decarbonize not only the electricity sector, but also heavy industry, manufacturing, agriculture, and more.
The Fiscal Year 2023 Omnibus Appropriations Bill released late last month included robust funding for nuclear but fell short of the $2.1 billion needed to bolster a domestic nuclear fuel supply. In the new year, the industry is committed to tackling the challenge of expanding HALEU and LEU capacity.
- Cementing U.S. Leadership in Nuclear Energy Innovation
The Russian assault on Ukraine, combined with increasing concern about the global climate, has served to accelerate interest in constructing U.S. designed reactors in Europe, Asia and beyond. 2023 will see even more agreements reached for the U.S. to partner with other nations to deploy new designs. We are watching to see how the U.S. government will help bolster these agreements, since positioning the U.S. as the partner of choice will jump-start progress on carbon reduction, create many thousands of domestic jobs, and strengthen U.S. partnerships with key nations across the globe.
If 2022 was any indication, 2023 will be filled with positive nuclear news. Stay tuned for new content from NEI this upcoming year—wherever you get your podcasts! For weekly summaries of what to be reading, subscribe to our Nuclear Energy Overview newsletter, and stay up to date on nuclear news by visiting NEI’s newsroom.