Face-Off: The Nuclear Non-Starter

Persistent economic and political issues continue to prevent the expansion of nuclear power.

Supporters of nuclear power are more optimistic today than they have been in decades. Recent policy developments regarding spent-fuel disposal and plant licensing support the industry's optimism, and nuclear-centered business strategies have proven relatively stable in a topsy-turvy utility market. But while these signals might be interpreted as the beginning of a nuclear power renaissance in North America, the industry still faces several stubborn roadblocks that impede significant expansion. Namely:

• Capital costs for nuclear power technology remain prohibitively high in a competitive power market, and new construction financing will remain elusive until that situation changes;
• Long-term waste disposal is a nagging political and social issue, which, despite some recent progress in Congress, shows no signs of being resolved any time soon; and
• Proliferation concerns (i.e., North Korea, Iran, etc.) are raising questions about the wisdom of revitalizing the global nuclear industry in the post-9/11 world.

In short, while life is getting better for the nuclear power industry, the outlook favors a continuation of the status quo rather than a new-construction renaissance. As Thos. E. Capps, chairman, president, and CEO of Dominion Energy, told the in its , "Right now I don't think anyone in this country is going to build another nuclear plant. We certainly are not. There is too much risk. It is like bidding part of your company on one plant. Nobody is going to do that."