1.7 GW of US Nuclear Power Expected To Retire In 2020

A report by S&P Global Platts, an independent research organization for energy markets, has reported that 1.7 GW of US nuclear power is expected to retire in 2020.

Their report details
which plants are retiring, what they are expected to be replaced by, why they
are replaced, and what this means for nuclear energy in the future.

This is an overview
of that report.

What
Nuclear Plants Are Closing?

There are two plants
closing:

• Indian Point Unit 2 – A nuclear plant owned by
  Entergy and located 24 miles north of New York City. 
• Duane Arnold Unit 1 – A nuclear plant owned by
  NextEra Energy and located near Palo, Iowa.

These power plants
add up to 1.7GW of energy capacity. Of course, this doesn’t mean this energy
capacity won’t be replaced. The Indian Point reactor’s capacity is expected to
be replaced through natural gas, while the Duane unit will be replaced through
wind farms in the area.

These are not the
only plants closing. In fact, more plants are scheduled to retire in 2021. So
why is this?

According to the
report, it’s because of increased competition in deregulated markets. Natural
gas has become very cost competitive compared to nuclear. On top of this,
renewable subsidies have further decreased the price of renewable energy
sources.

What
Does This Mean For Nuclear Energy?

This may make it seem
like nuclear energy can’t compete in a deregulated market. But it is too early
to count nuclear generation out.

This is because
nuclear generation is actually a zero-carbon energy producer. With many goals
proposed to get to 100% clean energy, nuclear may be a key part of that puzzle.
That is why many states are advocating for zero-carbon subsidies that include
nuclear energy (along with other renewables). In fact, Ohio’s HB 6 did just
that to keep nuclear plants open.

The report also
states that much smaller nuclear reactors could be used to supplement renewable
energy in the future. These would be 300 MW plants that would support energy
production when renewables are not generating power.

So while nuclear
plants may be closing now, they will likely still be a part of our clean energy
future.