Nuclear and Coal: Rebirth on the Horizon?

 

An analysis of the business opportunities behind coal and nuclear plant expansion.

Electric power industry trade publications and the popular media have noted a growing interest in the rebirth of both nuclear power and coal-fired generation. These technologies would be a supplement to, or an alternative to, the natural gas fired generation that appears to be the predominant fuel and technology for new power generation facilities in the coming decade.

Nuclear power enthusiasts express the notion that this country's need for several hundred thousand megawatts of new generating capacity over the next 10 to 20 years, the interests of fuel diversity, clean air issues, and energy security should be enough to drive this rebirth. Coal enthusiasts stress that new coal-fired generators can be much cleaner than existing units, and clean enough to meet anticipated stringent environmental requirements. We have not seen a strong advocacy on the basis of competitive financial opportunity, although the growing number of new coal-fired project announcements suggests that some developers see such opportunity.

With regard to nuclear, there appears to be a divergence of views, with advocates sensing that energy policy issues will drive rebirth, and the financial community sensing that a realistic promise of sound economics and profitability in the competitive generation environment is an essential prerequisite to any rebirth.