Economic Viability of Nuclear Power Under Threat, Energy Group Says

Nuclear reactors in the U.S. need a boost — either through carbon taxes or regulations forcing coal-fired plants to slash emissions — or economic factors will force many to close, according to a report released today from a non-profit group.

Nuclear power — currently the only major zero-carbon, around-the-clock baseload power source — supplies 19 percent of U.S. electricity and is key to meeting President Obama’s pledge to reduce emissions 17 percent below 2005 levels by 2020, according to the Center for Climate and Energy Solutions. The economic viability of the 100 nuclear reactors in the U.S. is worsening, the report says, because of the abundance of cheap natural gas and rising wind energy production.

A carbon tax or some form of carbon trading — for instance, requiring coal-fired plants to purchase and blend their electricity output with nuclear power — will be essential to keeping nuclear plants from closing before the end of their lifespans, the report contends. Four power companies recently announced the early retirement of five nuclear reactors, which constitute more than 4 percent of U.S. nuclear capacity, the group says.