Nuclear Power: Back in the Game

Nov 13 - Power Engineering

A combination of several important factors is making the resurgence of nuclear power more likely than ever before. Several power generators are seriously considering new nuclear power plants in their mix of generation assets.

The power industry in the United States is poised for a major shift with respect to the construction of baseload generating capacity, and nuclear power plants are sure to be part of the mix that will help diversify the country's generation sources. The Nuclear Regulatory Commission's (NRC's) restructured licensing process, availability of advanced reactor designs, need for new baseload capacity, and incentives from the federal government to support design and construction of new nuclear power plants have created a highly favorable climate for new nuclear plant construction. Utilities are carefully studying their options and it is highly likely that several orders for new nuclear power plants will be placed in the next six months.

ISSUES DRIVING NEW NUCLEAR POWER

Over the past 15 years, combined-cycle, natural gas-fired power plants in deregulated markets are virtually the only baseload capacity that has been added to the U.S. electrical grid. As gas prices rise, many of these plants are becoming uneconomical and are being withdrawn from service. Another concern is the long-term effects of carbon dioxide production during fossil fuel combustion. This growing concern is increasing the possibility that new regulations limiting greenhouse gas emissions or placing further limitations on other pollutants from fossil power plants will be enacted, creating additional barriers to baseload gas- and coal- fired Dower plant construction.

At the same time, steady economic growth and the population's continuing shift to the Southeast are creating significant growth in electricity demand in several areas of the country. As utilities evaluate their generating options, several are realizing that new nuclear power plants represent the lowest cost power source. At the very least, these utilities are carefully studying the costs, schedules and processes that would be used to license, build and operate new nuclear power plants. In the past year, six utilities or utility consortia have announced plans to develop and submit to the NRC a license application to construct and operate a new nuclear power plant. Three of these announcements have occurred in the last four months.

The recently signed Energy Policy Act of 2005 provides utilities with additional incentives to move forward with new nuclear power plant deployment. The legislation provides $2 billion in insurance by the federal government to cover delays in the licensing process for up to six new nuclear power plants. In addition, it creates production tax credits for new nuclear plants at a rate of 1.8 cents/ kWh for electricity produced over an eight-year period, and extends liability limitations for accidents at nuclear power plants by 20 years.

Cutaway view of the Westinghouse AP 1000 nuclear power plant. Photo courtesy of Westinghouse.

One pivotal, fundamental change that has contributed to the renewed focus on new nuclear power plants is the NRC's revamped processes for issuing licenses for construction and operation of power reactors. In 1989, the NRC published 10 CFR Part 52 to improve the efficiency and predictability of the licensing processes. The new licensing processes included provisions for NRC review and approval of nuclear power plant designs (design certification), early review and approval of sites for nuclear power plants, and a simplified one-step process for approving a license to construct and operate a nuclear power plant. NRC review of an application for a combined operating license that references both a previously approved early site permit (ESP) and a previously approved certified design could be completed much more easily and with substantially reduced regulatory uncertainties.

NEW REACTOR DESIGNS

Since the new regulations were issued, the nuclear power industry has taken numerous steps to lay the foundations for deployment of new nuclear power plants. Four applications were submitted to the NRC for approval of nuclear power plant designs. The NRC approved the Advanced Boiling Water Reactor (ABWR) designed by General Electric Co., the AP600 pressurized water reactor designed by Westinghouse, and the Systems 80+ designed by Combustion Engineering (now Westinghouse). The NRC is expected in the next few months to issue final approval of a fourth design, the AP1000 pressurized water reactor also designed by Westinghouse. (See sidebar for design details.)

Plans to seek NRC review and approval of two new nuclear power plant designs also were recently announced. General Electric Co. submitted an application for design certification for its Economic Simplified Boiling Water Reactor (ESBWR) in August. Areva also announced its intent to seek NRC certification of its European Power Reactor (EPR), a pressurized water reactor.

The Westinghouse AP1000 is designed to produce a nominal 1,200 MW while the General Electric ESBWR and the Areva EPR are designed to produce 1,577 MW and 1,550 MW (gross) respectively. Both the Westinghouse AP1000 and the General Electric ESBWR are passive reactor designs that utilize new design concepts to reduce the overall risks of postulated accidents, and decrease the number of active safety related systems and components necessary to operate the plant. The Areva EPR design is an evolutionary design that reduces the risks of postulated accidents through additional safety equipment, as well as some changes in system and containment design. All three plants are designed to shorten construction schedules, thereby reducing overall capital costs. All three also use advanced control systems to reduce required operating staff, resulting in reduced operations and maintenance costs.

LICENSING REGULATIONS

In 2001, three utilities under cooperative research and development agreements with the U.S. Department of Energy (DOE) initiated efforts to test the second part of the NRC's revised licensing process by preparing applications for ESPs. Exelon, Entergy and Dominion prepared the applications for sites where they are currently operating nuclear power plants in Illinois, Mississippi and Virginia, respectively. The ESP issued by the NRC resolves safety and environmental issues associated with the site, and provides assurance that the site is suitable for construction and operation of a nuclear power plant that falls within the design parameters established in the ESP. NRC review of the three applications is ongoing with the expectation that the permits will be approved by the NRC in 2006 and 2007.

In 2004, one utility and a consortium of eight other utilities applied for cooperative research and development agreements with the DOE to test the final element of the NRC's revised licensing regulations, the Combined Operating License (COL) process. Dominion and NuStart are developing COL applications for possible new nuclear power plants that will be submitted to the NRC for review. While neither entity has committed to actually construct a nuclear power plant when the NRC issues the COL, it's clear that NRC approval of the license will set the stage for the final commitment to construct, startup and operate a new nuclear power plant in the United States.

In support of the nuclear power industry's efforts to get ready for deployment of new nuclear power plants, the Nuclear Energy Institute (NEI), the policy organization of the nuclear energy and technology industry, in 2004 initiated development of detailed guidance that can be used to prepare an application for a COL. The guidance documents will further streamline the process of preparing licensing documents for submittal to the NRC, and will help assure that potential applicants provide information that will help the NRC further streamline its review. The NRC is working with NEI to review the proposed guidance.

Graphic rendering of the AREVA European power reactor (EPR). Photo courtesy of Areva.

The overall process for preparing a COL application and then supporting the NRC's application review is coming into much sharper focus for the nuclear power industry. Enercon Services Inc., a leading provider of engineering and licensing services to the fleet of 103 operating nuclear power plants in the United States, either has conducted or is conducting studies for three utility clients on the costs and schedule to prepare such an application. Several important insights have emerged to date from this body of work.

The selection of a potential site and the reactor technology are the two most critical decisions to be made before significant work can be completed on preparing the application. Site selection requires a thorough evaluation of diverse factors affecting suitability of the site, including availability of adequate supplies of cooling water, population distribution, growth patterns, land use near the potential site, access to the electrical transmission system, ecological issues and land acquisition costs.

Many utility sites where existing nuclear power plants are operating could potentially support additional nuclear power plants. These sites offer inherent advantag\es because the site characterization work was completed when the existing unit was licensed and site data accumulated over the existing unit's operating history is available. To meet the requirements of the National Environmental Policy Act (NEPA), utilities must complete a detailed study of alternate sites, considering a variety of factors including the project's environmental impact and business objectives. Study results are included in the comprehensive environmental report prepared as part of the COL application.

COL APPLICATIONS

Utilities must select the reactor technology that will best meet their specific needs. While no formal orders have yet been placed for any new nuclear power plants, Dominion and NuStart have committed to develop COL applications.

Dominion expects to develop an application for a General Electric ESBWR while NuStart will prepare two applications using the reactor technology designs for General Electric's ESBWR and the Westinghouse AP1000. Other utilities are studying the different reactor technology designs to identify the best technology for their needs; commitments are expected by the end of 2005. Factors being considered for the reactor technology selection decision include projected capital costs for the plant, projected operations and maintenance costs, reliability, status of NRC licensing review, and the vendors' overall abilities to support design completion, licensing and construction of the power plant.

Graphic rendering of General Electric's ESBWR nuclear power plant. Photo courtesy of General Electric.

Once the site and the reactor technology are selected, the utility can actually begin preparing the application, which is expected to take 22 to 24 months. The application must include an environmental report, a final safety analysis report, an emergency plan and a security plan for the proposed plant. Preparation of the licensing documents requires extensive engineering and environmental studies. The application addresses a broad range of natural phenomena hazards including earthquakes, flooding, tornados and hurricanes; analysis of potential accidents and the plant's design features that prevent the public from being exposed to radiation; and operational plans for the future unit to assure it will be operated in accordance with NRC regulations.

When the application is completed and submitted to the NRC, the utility must support an intense regulatory review process that can last 26 to 33 months. Based upon the application, the NRC will prepare a Safety Evaluation Report and a Final Environmental Impact Statement to document conclusions on the safety and environmental impact of the proposed plant. The licensing process includes a mandatory hearing before an NRC Atomic Safety and Licensing Board, as well as opportunities for the public to participate in the licensing process through administrative hearings on safety or environmental issues.

Once the NRC completes its review of the application and issues a COL to the utility, actual equipment procurement and construction can begin. Construction and commissioning should take 48 to 60 months. Current reactor technology designs include significant modularization as well as use of advanced modeling systems to allow acceleration of construction schedules.

BY ROBERT EVANS, ENERCON SERVICES INC.

Author

Bob Evans is Director of New Plant Services for Enercon Services Inc. He recently presented a workshop hosted by the Electric Power Research Institute for utilities on planning for deployment of new nuclear power plants. He directed Enercon's efforts to prepare me Early Site Permit application for the Grand Gulf Nuclear Station Site and is currently working with three utilities on studies relating to potential deployment of new nuclear power plants. Evans has a bachelor's of science degree in nuclear engineering from the University of Missouri at Rolla and 27 years of engineering and licensing experience supporting the commercial nuclear power industry and the DOE.