nuclear-news

Challenges

The following serious challenges have significantly impaired the industry’s ability to compete in domestic and international markets:

High capital costs. In today’s uncertain economic environment, it is difficult to make the political case that public funds should be committed to large, expensive energy projects that may not come online for nearly a decade. Typically, investment costs of nuclear power plants account for around 60% of total project lifecycle costs.

Unclear foreign investment rules. Organisations that constitute a “strategic asset” to Canada may be barred from foreign purchase or takeover. In fact, the phrase “strategic asset” is not discussed in the Canada Investment Act, but its frequent mention by federal and provincial politicians has created confusion in Canada and abroad. As a result, there is uncertainty around whether foreign entities will be able to purchase Canadian nuclear energy companies and assets, or even compete in the Canadian market. In the absence of a transparent investment framework, it is difficult for international organisations to expand or develop operations in Canada that could generate greater economic growth.

A historical CANDU monopoly places the sector in a niche market.The Canada Deuterium Uranium (CANDU) reactor has been the flagship of Canada’s nuclear energy sector for almost 50 years. But since the nuclear energy market shifted to light water reactors (LWRs) — approximately 30 years ago, when France started procuring LWR technology from the US — heavy water reactors have become a minority technology in the global market.

Acquiring and maintaining social license. Among the greatest challenges facing stakeholders in the nuclear sector is the lack of social license for new nuclear power plants. This concern does not necessarily exist in communities near power plants or uranium mines, but it is a broader perspective within the general population. Concerns around safety, spent fuel storage, and high capital costs have decreased public and political support for large nuclear construction programmes. Fears over nuclear proliferation and plant meltdowns and accidents, like those at Chernobyl, Three Mile Island and Fukushima, are common…..

Few political champions. An important element in any country with a successful nuclear energy programme is leaders who champion the merits of nuclear energy, often at great political risk. Overcoming the concerns of the public is much more difficult without this political support……