Essay About Nuclear Power Generation Industry And Cost Increases

Nuclear Power Generation Driving Forces of ChangeNuclear Power GenerationDriving Forces of ChangeThere are several driving forces of change in the Nuclear Power Generation industry. First, regulations impede industry participants from building plants since construction permits are difficult to attain. In addition, once plants are constructed, players must go through in-depth review procedures in order to upgrade existing facilities. Overall, supervision of nuclear power operations is strict. Second, uranium is the fuel used to generate nuclear power; therefore, its price has a considerable effect on industry performance. (Exhibit 7) Third, downstream demand from manufacturing industries accounts for around thirty percent of overall industry need and acts as another driving force of change.

The Nuclear Power Generation Industry as a Class by Its Market Type:

In a single-source scenario, “the global meltdown of the Fukushima Daiichi Nuclear Power Plant” of July 2013 was the catalyst for a massive international response to Fukushima. An agreement was reached to work together to limit the release of radioactive fission products into the environment and to ensure that new reactor plants were capable of fulfilling the capacity anticipated. Nuclear plants in the North American region were to be shut down in order to meet the requirement for “a major overhaul in the manufacturing of nuclear power plants and other critical technologies,” which is an essential prerequisite for a safe and high-quality power supply.

Nuclear Power Generation as a Class:

In a single-source scenario, “the global meltdown of the Fukushima Daiichi Nuclear Power Plant” of 2011 was the catalyst for the worldwide government push for more efficient power generation and the U.S. Department of Energy to create a major “recovery” program to “reduce nuclear energy costs, promote more efficient energy, and reduce the effects of climate change to mitigate risks” (Exhibit 10). In addition, since 2011, the government’s National Renewable Energy Laboratory (NREL) has conducted extensive studies, including the development of reactors, to help assess changes in reactor performance and maintenance and to conduct studies of other aspects of nuclear power plants.

Nuclear Power Generation in the Public Sector:

During the past decade, nuclear power has increased nearly in tandem with other sectors, such as energy production and renewables. Since 2012, average annual electricity consumption has decreased considerably with the exception of power plants, and overall nuclear power consumption has continued to increase. In the last 15 years, both the number of nuclear plants increased and the number of non-nationally run nuclear power plants increased annually. As a result, nuclear energy is being made more reliable, available as both energy-generating and environmentally friendly technologies, and is more widely used in many countries. Nuclear power plants have more than doubled in global nuclear power consumption in recent years (Figure 1b).

Figure 1. Topography of the North American nuclear power grid. (a) Summary of trends in renewable energy generation (NREL) (A) and nuclear energy generation (NREL) (B), and a proxy for trends in the market share of nuclear power (A) (figure 1b). (b) Results of the latest NREL data on average current generation (NREL) for nuclear electricity generation (NREL) for all sources. As shown in, in recent years and the corresponding trends in electricity generation in the United States and the European Union (Figure 2) nuclear power generation has decreased by a large amount. For example, since 2010, total installed nuclear plants have decreased by one-fifth in U.S. territory, to about 10% or more of all installed power generation. In the United States alone, nuclear power has remained the leading-edge source of renewable energy. On January 3, 2011, the S&P 500 NREL rated renewable power generation for 2011 was 1.76 GW, up from 1.72 GW in 2009, and a three percent increase over the previous year (Figure 2b). Nuclear power is increasingly becoming a primary energy source, becoming more cost-effective, more efficient, more environmentally friendly, and more expensive with decreasing dependence on coal (Figure 2c). Nuclear power plant operators are rapidly improving their systems to provide high and sustainable energy, and more efficient, more cost-effective systems (Figure 2d). While the overall trends in the market distribution of renewable power is more favorable for U.S.-supported nuclear power (P&E), the P&E system does not represent the majority of the market for nuclear power. Nonetheless, there also remains the important question of whether and how to improve electricity distribution and how to reduce the costs of generating power. Energy Policy and Policy (EPO) as the main mechanism for improving electricity distribution and price sharing of electricity (20) has proved successful in the U.S. and is expected to become increasingly important in India, where, as of 2014 at least 16 states, including six new ones, have begun to adopt EPO legislation (Figure 3). Several utilities and energy companies are using EPO to further develop their policies on carbon and other global greenhouse gas emissions, especially as a primary means of reducing the costs of power generation. These efforts include improving the efficiency of energy storage and new generation capacities, or expanding capacity that can be provided through efficient use of natural gas, or adding solar photovoltaic, nuclear capacity, and biofuels (LPG) generation capacity (21, 22). The transition to renewable energy (also called “clean” electricity) continues to be critical to addressing climate change. At this point during the current century, as of 2013—as of 2006, the entire electricity price for U.S. gasfired generation was lower than that of wind and solar, with solar prices for power generation increasing significantly per solar megawatt hour of electricity compared with power generation from other sources (23).

Table 1

Transportation

Power plants

Source of U.S. and global nuclear population energy

(U.S.–2010) 2012 Nuclear power use, U.S.–2010 2011 Nuclear electricity use, U.S.–2010 2012 Nuclear power use, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2012 Nuclear electricity consumption, U.S.–2010 2012 Nuclear electricity consumption, U.S.–2005 2012 Nuclear electricity consumption, U.S.–2009 2013 Nuclear electricity consumption, U.S.–2010 2010 Nuclear energy consumption, U.S.–2009 2010 Nuclear electricity consumption, U.S.–2012 (U.S.) 2012 Nuclear electricity consumption, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2010 Nuclear electricity consumption, U.S.–2009 (U.S.) 2012 Nuclear electricity consumption, U.S.–2009 (U.S.) 2011 Nuclear electricity consumption, U.S.–2009 2010 Nuclear electricity consumption, U.S.–2011 2010 Nuclear power consumption, U.S.–2007 2011 Nuclear electricity consumption, U.S.–2008 2012 Nuclear

The Nuclear Power Generation Industry as a Class by Its Market Type:

In a single-source scenario, “the global meltdown of the Fukushima Daiichi Nuclear Power Plant” of July 2013 was the catalyst for a massive international response to Fukushima. An agreement was reached to work together to limit the release of radioactive fission products into the environment and to ensure that new reactor plants were capable of fulfilling the capacity anticipated. Nuclear plants in the North American region were to be shut down in order to meet the requirement for “a major overhaul in the manufacturing of nuclear power plants and other critical technologies,” which is an essential prerequisite for a safe and high-quality power supply.

Nuclear Power Generation as a Class:

In a single-source scenario, “the global meltdown of the Fukushima Daiichi Nuclear Power Plant” of 2011 was the catalyst for the worldwide government push for more efficient power generation and the U.S. Department of Energy to create a major “recovery” program to “reduce nuclear energy costs, promote more efficient energy, and reduce the effects of climate change to mitigate risks” (Exhibit 10). In addition, since 2011, the government’s National Renewable Energy Laboratory (NREL) has conducted extensive studies, including the development of reactors, to help assess changes in reactor performance and maintenance and to conduct studies of other aspects of nuclear power plants.

Nuclear Power Generation in the Public Sector:

During the past decade, nuclear power has increased nearly in tandem with other sectors, such as energy production and renewables. Since 2012, average annual electricity consumption has decreased considerably with the exception of power plants, and overall nuclear power consumption has continued to increase. In the last 15 years, both the number of nuclear plants increased and the number of non-nationally run nuclear power plants increased annually. As a result, nuclear energy is being made more reliable, available as both energy-generating and environmentally friendly technologies, and is more widely used in many countries. Nuclear power plants have more than doubled in global nuclear power consumption in recent years (Figure 1b).

Figure 1. Topography of the North American nuclear power grid. (a) Summary of trends in renewable energy generation (NREL) (A) and nuclear energy generation (NREL) (B), and a proxy for trends in the market share of nuclear power (A) (figure 1b). (b) Results of the latest NREL data on average current generation (NREL) for nuclear electricity generation (NREL) for all sources. As shown in, in recent years and the corresponding trends in electricity generation in the United States and the European Union (Figure 2) nuclear power generation has decreased by a large amount. For example, since 2010, total installed nuclear plants have decreased by one-fifth in U.S. territory, to about 10% or more of all installed power generation. In the United States alone, nuclear power has remained the leading-edge source of renewable energy. On January 3, 2011, the S&P 500 NREL rated renewable power generation for 2011 was 1.76 GW, up from 1.72 GW in 2009, and a three percent increase over the previous year (Figure 2b). Nuclear power is increasingly becoming a primary energy source, becoming more cost-effective, more efficient, more environmentally friendly, and more expensive with decreasing dependence on coal (Figure 2c). Nuclear power plant operators are rapidly improving their systems to provide high and sustainable energy, and more efficient, more cost-effective systems (Figure 2d). While the overall trends in the market distribution of renewable power is more favorable for U.S.-supported nuclear power (P&E), the P&E system does not represent the majority of the market for nuclear power. Nonetheless, there also remains the important question of whether and how to improve electricity distribution and how to reduce the costs of generating power. Energy Policy and Policy (EPO) as the main mechanism for improving electricity distribution and price sharing of electricity (20) has proved successful in the U.S. and is expected to become increasingly important in India, where, as of 2014 at least 16 states, including six new ones, have begun to adopt EPO legislation (Figure 3). Several utilities and energy companies are using EPO to further develop their policies on carbon and other global greenhouse gas emissions, especially as a primary means of reducing the costs of power generation. These efforts include improving the efficiency of energy storage and new generation capacities, or expanding capacity that can be provided through efficient use of natural gas, or adding solar photovoltaic, nuclear capacity, and biofuels (LPG) generation capacity (21, 22). The transition to renewable energy (also called “clean” electricity) continues to be critical to addressing climate change. At this point during the current century, as of 2013—as of 2006, the entire electricity price for U.S. gasfired generation was lower than that of wind and solar, with solar prices for power generation increasing significantly per solar megawatt hour of electricity compared with power generation from other sources (23).

Table 1

Transportation

Power plants

Source of U.S. and global nuclear population energy

(U.S.–2010) 2012 Nuclear power use, U.S.–2010 2011 Nuclear electricity use, U.S.–2010 2012 Nuclear power use, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2012 Nuclear electricity consumption, U.S.–2010 2012 Nuclear electricity consumption, U.S.–2005 2012 Nuclear electricity consumption, U.S.–2009 2013 Nuclear electricity consumption, U.S.–2010 2010 Nuclear energy consumption, U.S.–2009 2010 Nuclear electricity consumption, U.S.–2012 (U.S.) 2012 Nuclear electricity consumption, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2011 Nuclear electricity consumption, U.S.–2010 2010 Nuclear electricity consumption, U.S.–2009 (U.S.) 2012 Nuclear electricity consumption, U.S.–2009 (U.S.) 2011 Nuclear electricity consumption, U.S.–2009 2010 Nuclear electricity consumption, U.S.–2011 2010 Nuclear power consumption, U.S.–2007 2011 Nuclear electricity consumption, U.S.–2008 2012 Nuclear

Key Success FactorsThe key success factors in this industry include player’s ability to pass on cost increases, ability to utilize optimal capacity, good management of finances and debt as well as being able to adjust well to changing regulations . The regulatory environment for the industry changes often and firms must be able to adjust operations accordingly. In addition to dealing with regulatory officials, firms must deal with government state policy, which strongly affect pricing in the industry.

Coal & Gas Power GenerationDriving Forces of ChangeThe driving forces of change in the Coal & Gas Power Generation industry are similar to those that exist in Nuclear Power Generation. First, industrial use of electricity by manufacturing industries accounts for about 30% of demand (Exhibit 8); as a result, this demand is a major external driver. Second, world price of coal significantly impacts costs for firms as black coal is the main fuel used in the electricity generation industry. (Exhibit 7) Furthermore, shifting oil prices have a relatively minute effect on costs for electricity generators since oil-fired plants account for a small amount of total fossil fuel electric power generating capacity. Third, the world price of natural gas is a significant driver in the industry. Gas has become an important fuel source as it is more environmentally friendly than coal, and firms are utilizing it in order to reduce their environmental impact; therefore, changes in gas prices not only affect the industry’s costs but also determine whether gas is used as a fuel source.

Key Success FactorsThe key success factors in the Coal & Gas Power Generation industry include players’ ability to pass on cost increases, ability to utilize optimal capacity, good management of finances and debt as well as being able to negotiate successfully with regulators . First, firms must be able to effectively pass on cost increases since cash operating