G. Chandrashekhar

Mumbai, July 12 Worsening energy crunch, rising fossil fuel prices and environmental concerns, and in turn their combined impact on global economic growth, have trained attention on energy options including renewables and nuclear.

While renewable energy generation is picking up rapidly, the prospects for nuclear energy remain uncertain, according to Worldwatch Institute, a Washington DC-based independent research organisation. Global nuclear power capacity grew by less than 2,000 MW in 2007, a figure equivalent to just one-tenth of the new wind power installed globally last year, the institute said in a new report.

Global nuclear capacity stands at 372,000 MW, but ranks as the slowest growing energy source–just 0.5 per cent in 2007, compared to wind at 2.7 per cent. By the end of 2007, some 34 nuclear reactors were being built worldwide, 12of which had been under construction for 20 years or more, the report pointed out, adding, Asia accounts for the most nuclear power plant construction with 20 new reactors currently under way.

India and China each have six reactors under construction, accounting for 8,130 MW, or more than a quarter of the nuclear capacity currently being built worldwide. More than 124 reactors have been retired by the commercial nuclear industry since 1964, amounting to a total of 36,800 MW of generating capacity.

Issues faced

According to the report, construction delays and cost overruns continue to plague the nuclear industry. Engineering issues too have come to the fore. Cost estimated for identical Westinghouse-designed nuclear plants more than doubled in 2007 to $12-18 billion, raising questions about the plant’s economic viability and doubts as to how many electric utilities would be willing to add liabilities of that scale to their balance sheets.

The US credit rating agency Moody’s has cautioned that many utilities are underestimating the cost of new plants and that nuclear investment could damage their credit ratings.