Nuclear power plants require huge upfront costs, but have not been significantly affected by the financial crisis as these are very long-term investments (plants take on an average 8-10 years to be constructed in Europe), and, most importantly, these facilities receive high political support. Moreover, the recent Russia and Ukraine gas dispute has further strengthened the prospects for nuclear, especially in Eastern Europe.
Benefits of nuclear power include the potential to reduce carbon dioxide emissions, cost-effectiveness, increased energy independence and security, and the ability to make a significant contribution to the ever-increasing demand for energy. However, lack of political support and issues surrounding the storage and disposal of nuclear waste are seen as major constraints. The planning and construction of a nuclear power plant is extremely time-consuming and is significantly longer than any single government party rule in a country. Lack of public awareness related to waste management contributes to the issue of spent fuel storage and disposal.
The number of nuclear reactors in the EU has been decreasing since its peak of 177 in 1989. In 2008, there were 145 nuclear reactors in operation and nuclear power constituted around 30% of the total electricity generation mix for Europe. However, due to increasing political support and a number of planned and expected projects, this number is expected to increase significantly, as nuclear energy enters a period of renaissance.
After years of stagnation, Finland got the ball rolling in 2005 when the construction of its third unit at Olkiluoto site began. It was the first new facility in Western Europe after a 15 year hiatus. Likewise, France is constructing its new Flamanville 3 reactor and is planning to add new units. In December 2008, Slovak authorities resumed construction of two units at Mochovce site and Bulgaria has started constructing at the Belene site. Sweden is overturning a 30 year ban on the construction of new nuclear power plants. Italy has decided to reintroduce nuclear power into its energy mix after its complete phase-out of nuclear energy resulting from a 1987 referendum. The country hopes to begin construction of its first nuclear plant by 2013. Moreover, the United Kingdom, Romania, Hungary, the Czech Republic, Poland and Latvia, have all announced nuclear construction plans.
"Despite having high CAPEX, it does not seem that the nuclear industry has been significantly affected by the current downturn," continues Jeziorski. "Consequently, future developments in nuclear energy mainly depend on fossil fuel prices, including emission trading costs and advancement of new nuclear technologies. Overall, the picture for nuclear power in Europe is rosy and nuclear power generation will gain importance in the future and will, undoubtedly, present a number of opportunities over the medium to long term."
