The expansion of nuclear capacity in the US Southeast may contrast with its contraction elsewhere, especially in competitive wholesale power markets, but the reasons, in effect, remain tied as much to supply and demand as they are to politics.
For example, last week’s announcement that the Tennessee Valley Authority had ramped up its Browns Ferry Unit 3 to full power contrasts with claims from nuclear power operators in competitive market areas, who have either shut down nuclear plants or threatened to do so without state subsidies.
The TVA’s announcement involved the addition of 155 MW to the 1,155-MW unit, while two other plants of similar size are slated to receive by next summer similar upgrades, bringing the nuclear power plant site up to more than 3,900 MW of capacity, at a cost of about $475 million.
The expansion of nuclear capacity is partly designed to achieve the TVA goals of expanding low- or zero-carbon power capacity. The TVA website maintains that 54% of its current capacity is from zero-carbon resources such as nuclear and hydro, and TVA plans to raise that percentage to 59% by fiscal year 2027.
Mark Watson – S&P Global – July 26, 2018.
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