Negative Factors

Nuclear Energy Trends

Nuclear Energy Trends

Negative Factors

While nuclear power has finally been recognized as a non-emitting technology in US energy legislation, it still does not qualify internationally for greenhouse gas emission credits. Nuclear plant phase-out programs still exist in a number of European countries, including Germany, Belgium and Spain, although these plans are reportedly being reconsidered.

Although progress is being made in several countries on the management of radioactive waste from the nuclear fuel cycle, it remains a controversial issue. Concerns about the long-term management of radioactive waste continue to be an impediment to the nuclear renaissance. Many environmental groups continue to oppose the nuclear power industry.

The first few new generation nuclear plants will face significant business risks, including "first-of-a-kind" costs, as well as possible delays in financing, licensing and construction. Escalating costs of construction materials and uncertain regulatory environments present a major obstacle to new plant construction. It remains to be seen whether new plants can be competitive in all regions with other forms of baseload electricity generation.

The current global financial crisis may slow or delay new reactor builds and upgrades to existing facilities, however the demand for new baseload electricity still exists. The financial crisis is not expected to impact long-term climate change or energy security policies. Indeed government stimulus packages may promote large projects like nuclear plants.

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