ANS: Expedited licensing process vital to new nuclear power plants
The licensing process for the next generation of nuclear power plants can be predictable and timely while still being thorough so that the Nuclear Regulatory Commission can effectively discharge its mandate to protect public health and safety, says a position statement adopted by the ANS Board of Directors.
"On February 14, 2002, Secretary Spencer Abraham announced that the Department of Energy was starting a new initiative, 'Nuclear Power 2010," which has a goal of demonstrating the NRC's current licensing processes and supporting related technical development to enable the deployment of new nuclear power sources by the year 2010," said ANS President Dr. Gail H. Marcus. "This statement indicates ANS' support for such an initiative."
For new power plants of any type to be competitive in the marketplace, operators must be able to supply power at prices comparable to, or less than, those offered by their competitors. Long delays, especially in the licensing process, in getting a new plant online can seriously affect generating costs, as plants are capital intensive and face high interest costs during construction.
"This forward-looking position considers the economic growth of the country, the need for increasing energy supply and our belief that nuclear should continue to be a major contributor to the energy supply in the future," added Richard St. Onge, chair of ANS' Operations and Power Division. "Nuclear energy provides tremendous benefit to our society. However, from an economic view the process for licensing the next generation of power plants must be predictable and timely."
Financial markets are especially sensitive to the potential increased construction costs generated by delayed licensing. In addition to the competitive risks, plant developers also can be exposed to financing difficulties and/or higher interest rates if the perceived uncertainties are large in any phase of the plant deployment process.
"You certainly don't want to get into a situation where you have invested a lot of money in the design, have signed contracts and are ready to go forward only to be held up five to 10 years waiting for a license," said St. Onge. "We need a well-designed, well-understood licensing process. That's the only way investors will enter into any venture."
St. Onge stressed, however, that public safety and confidence are priorities in the licensing of new nuclear power plants. While providing the public with confidence in the safety of nuclear plants, the NRC licensing process should minimize the economic risks faced by future nuclear plant owners and operators, while sustaining the public safety record power plants have achieved over the past 40 years.
The NRC licensing process "should help minimize the economic risks faced by future nuclear plant owners and operators, who must have a process that is predictable in both its technical scope and its schedule to effectively compete in the newly deregulated electricity markets," according to the ANS position statement.
For more information regarding ANS positions, go to its web site at: http://www.ans.org/pi/ps/.
