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Nuclear power on the wane, and cheap gas is hastening that decline

Flag-USAAnother casualty of the shale gas boom: Nuclear power WP by  Brad Plumer February 21, 2013   The last few years have seen all sorts of drastic upheavals in the U.S. energy sector. Cheap natural gas is dominating. Wind and solar are growing. Coal is dwindling.

Now we can add another trend to the list: Nuclear power is on the decline. Since 2010, the amount of electricity generated from America’s nuclear reactors has fallen about 3 percent, or 29 billion kilowatt-hours. That’s a sizable drop.

So why is nuclear on the wane? Part of the story here is that America’s fleet of reactors is aging, which means they need to be taken offline more frequently for repairs. The San Onofre plant near San Diego, for instance, has been out since January 2012.

But a huge part of the story here is competition from cheap shale gas. This month, Duke Energy decided to close its Crystal River nuclear plant in Tampa rather than pay $1.5 billion to repair a cracked dome. The reason? It was easier to build new natural-gas turbines to replace the lost electricity. Last fall, Dominion Power announced that it would close its Kewaunee reactor in Wisconsin for similar reasons.

And that’s just the start: One energy analyst told Bloomberg that at least four other U.S. reactors are now at risk of early retirement “due to new power market economics.” Not only that, but the gas boom is killing off future reactors, too: Back in 2011, NRG scrapped plans for two new nuclear units in Texas. The reason? Other sources were cheaper and easier, including gas and wind.

February 22, 2013 - Posted by | business and costs, USA

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