Nuclear power’s contribution to electricity generation

The first nuclear power programs were launched in the mid-1960s in the United States and in the early 70s in Europe. In the 1970s, with fears of fossil fuel shortages rising, several countries decided to reduce their dependency on imported energy by launching nuclear power programs. The 1970s and 1980s saw a sharp rise in nuclear power programs, as shown below.

Number of reactors in operation and Installed capacity in the world from 1965 to 2007



Source: IAEA

Strong initial growth slowed when public opposition grew after the nuclear accidents of Three Mile Island in 1979 and Chernobyl in 1986.
Nuclear power generation in 2007 is estimated at 2,734 TWh, down by 2% compared with 2006, mainly due to prolonged reactor outages in Germany, the United Kingdom and Japan. Meanwhile, world electricity generation rose 3.4% in 2007. The chart below shows the various sources of electric power generation as of December 31, 2007.
The chart below shows the various sources of electric power generation as of December 31, 2007.

Nuclear power generation by region - 2007



Source: AREVA from data provided by Nucleonics Week, February 2007

At year-end 2007, 35 reactors were under construction around the globe, compared with 29 at year-end 2006; 91 reactors were either on order or planned, compared with 62 at year-end 2006 and 39 at year-end 2005; and more than 220 reactors are planned for the coming years, compared with 160 at year-end 2006 and 110 at year-end 2005.
These reactors represent three main technologies:
Most of the world's operating reactors are light water reactors, including pressurized water reactors (PWR) and boiling water reactors (BWR); 359 of these reactors are connected to the grid, including 52 VVER reactors (PWR) using Russian technology. There were only 46 Canadian-designed heavy water Candu reactors connected to the grid in 2007.
There are 18 gas-cooled reactors (Magnox and AGR) in service in the United Kingdom. These reactors are scheduled to be shut down. Other reactor systems are also in services; they use graphite as a moderator (Russian RBMK light water reactors) or fast neutron technology.

Reactors in operation, under construction or planned worldwide at year-end 2007



Source: AREVA based on WNA data

Current status of nuclear power

Global nuclear power generation has been increasing for several years now, and a number of countries are committed to expanding their nuclear programs. Through 2015, most of the growth potential is located in Asia (Japan, Korea and China) and, to a lesser extent, in the CIS. The majority of the reactors under construction are located in these regions.

In 2004, the World Energy Council issued a report comparing the merits of different sources of energy for electric power generation, based on three criteria: competitiveness (energy accessibility and availability), energy security and environmental impacts. The report’s conclusions, summarized in the table below, show that nuclear and hydropower are the most advantageous solutions, based on these three criteria.

Comparison of energy sources used for electric power generation


Source: World Energy Council (WEC), July 2004

In terms of cost, the “Projected Costs of Generating Electricity” study updated by the OECD/IEA/NEA in 2005 indicates that nuclear power’s competitiveness has improved since 1998. Based on a 5% discount rate, nuclear power is the most competitive baseload option in 12 of the 13 countries that selected this approach. At a 10% discount rate, nuclear power continues to be the most competitive source of energy in 9 out of 13 countries.

Competitiveness of electricity generated by nuclear power compared with coal and natural gas



Source: OECD NEA/IEA study updated in 2005, discount rate of 5%.

Challenges of the nuclear power market

The group believes that recent developments point to a restart of nuclear power programs around the globe. Actual deployment, however, will depend on political decisions that vary from one region to the next.

In Western Europe, reactor replacements and new reactor construction in countries with more recent units cannot be expected until the next decade, unless energy policies change dramatically. In France, replacement of its power reactors began with EDF’s decision to build its first-of-a-kind EPR at Flamanville. Suez-Electrabel is also contemplating the construction of a new reactor. In Finland, construction of the first EPR ordered in late 2003 continued, with start-up scheduled for 2010. In Eastern Europe and the United Kingdom, some projects could translate into orders soon.

In North America, utilities began extending reactor service life in 2000. These programs are expected to continue through 2015. After 2010, these initiatives should be supplemented in the United States with the construction of new reactors. AREVA intends to participate actively in this market with the EPR reactor. The Energy Bill enacted by Congress in 2005 offers many incentives to utilities for the construction of the first new reactors. Canada and Latin America have expressed renewed interest as well.

In Asia, in addition to the programs of South Korea and Japan, new power plant construction will primarily occur in China (2005-2020 program) and India. Other countries have also shown interest in nuclear power over the long term, including Vietnam and Indonesia.

South Africa, where demand is high, is expected to announce new projects beginning in 2008.

 Learn more about regional challenges 

Useful links: to find out more…

www.nea.fr: Nuclear Energy Agency
www.iaea.org: International Atomic Energy Agency
www.world-nuclear.org: The World Nuclear Association (WNA) is an international organization that promotes nuclear power. Its website provides a large number of reports, theme papers and press articles
www.cea.fr: French "Commissariat à l'Energie Atomique" (CEA)
www.sfen.org: Société Française d’Energie Nucléaire (the French nuclear energy society)
www.wano.org.uk: World Association of Nuclear Operators