Nuclear Power: Role in the Future Energy Mix

Current Adoption Trends in Nuclear Power

Nuclear power adoption is on the rise, driven by up rates, new small modular reactors (SMRs), and advanced designs like the AP1000. Major energy companies are integrating new nuclear generation to enhance system reliability and meet net-zero goals, highlighting the sector's commitment to expanding carbon-free power sources.

"And we would expect coal to be declining over the course of the 2020s. Nuclear may increase a bit because we do have some up rates planned for our plants. But as we look into the 2030s in particular and consider new small modular reactors, we'd love to see more carbon free power from our nuclear suite of assets over time and so that's something we're working very hard on." --- (DUK, event transcript, 2024/05/09)

""Working with our partners across government, industry, labor and beyond, we have added new nuclear generation to the diverse energy resources that enhance the reliability, resiliency and affordability of our system as we work to achieve our goal to be net zero by 2050."" --- (SO, press release, 2024/04/29)

"For several years, utilities, state and federal agencies and leading technology firms have explored SMRs as the next generation of carbon-free nuclear power in the U.S. SMRs have the same reliability and environmental benefits as traditional nuclear, but with a significantly smaller footprint and lower upfront capital costs." --- (D, press release, 2024/07/10)

"But we think others, they have the opportunity and should really look at this country has to look at new nuclear to go forward to meet this growing demand." --- (SO, earning call, 2024/Q1)

"You are certainly correct to point out that these new nuclear units not only are the first built in the U. S. In more than 30 years, but they are in fact the 1st in this country to use the new advanced AP1000 design.These units feature a suite of additional safety features as compared to traditional nuclear power plants." --- (SO, event transcript, 2024/05/22)

Regulatory Environment and Policies

A constructive regulatory environment, supported by legislative frameworks and federal policies like the IIJA, is crucial for the growth and deployment of nuclear power projects. Companies like NEE, DUK, SO, and EXC highlight achieving significant regulatory milestones and leveraging federal support to ensure reliability, affordability, and stakeholder benefits.

"You've got a great legislative environment, you've got a constructive regulatory environment, and you've got the growth that you need in order to deploy capital in the state." --- (NEE, Investor Day, 2024/06/11)

"In the face of an extremely challenging external environment with rapidly rising interest rates and extremely mild weather, our employees executed our strategy, achieved significant regulatory and policy milestones and ensured affordability and reliability for our customers and communities." --- (DUK, AGM, 2024/05/09)

"I think we have the experience, we have the wherewithal, we have these constructive regulatory environments, and we have the framework to do this, I think, in a way that makes sure that is orderly and disciplined and provides benefits to all stakeholders." --- (SO, earning call, 2024/Q2)

"We continue our strong advocacy for equitable and balanced energy transition, taking advantage of the unprecedented federal support through IIJA for investment across the ecosystem, while continuing our industry-leading efforts to strengthen our communities." --- (EXC, earning call, 2024/Q1)

"Our focus on putting the customer first, delivering high reliability and low bills leads to our constructive regulatory environment that enables us to continue to deliver a leading value proposition." --- (NEE, Investor Day, 2024/06/11)

Environmental Impact and Sustainability

Southern Company and Duke Energy emphasize their commitment to sustainability, focusing on decarbonization and adding clean energy to the grid. Both companies prioritize environmental impacts and aim for net zero greenhouse gas emissions by 2050, highlighting nuclear power's role in achieving these goals.

"Our planning process considers a host of factors, including affordability, reliability, safety, environmental impacts and resiliency as well as broader social and economic community impacts as we make generation decisions. We will continue to use this approach, one that places priority on the customers and communities we serve as we work to decarbonize in the decades ahead. Skyler, next question." --- (SO, event transcript, 2024/05/22)

"We are committed to creating a more sustainable future as we actively work to add more clean energy to the grid. • Jeff Riles, Microsoft, Director of Datacenter Energy and Sustainability Nucor is one of the cleanest and most sustainable steel producers in the world and has proudly operated in the Carolinas since the 1960s." --- (DUK, press release, 2024/05/29)

"Through an industry-leading commitment to innovation, resilience and sustainability, we are taking action to meet customers' and communities' needs while advancing our goal of net zero greenhouse gas emissions by 2050." --- (SO, press release, 2024/05/13)

Geopolitical Considerations and International Collaborations

NextEra Energy and Southern Company emphasize the importance of managing geopolitical risks and leveraging international collaborations to secure critical equipment and achieve significant milestones in the energy sector.

"We're able to secure critical equipment so we never get caught short in our ability to interconnect, whether it's transformers, switch gears or the like. We have applied advanced analytics to our global supply chain practices, ensuring we're able to obtain the best pricing for our customers while also managing geopolitical risks, as we have leveraged our scale to secure interconnect spots." --- (NEE, Investor Day, 2024/06/11)

"This is a historic milestone for our company, state and country. This achievement was possible thanks to the collaboration, perseverance, and unwavering commitment of visionary leaders, dedicated teammates, skilled laborers and stakeholders." --- (SO, Twitter, 2024/05/31)

Public Perception and Safety Concerns

Nuclear power companies emphasize their strong safety records to address public perception and safety concerns. Dominion Energy and NextEra Energy highlight their improved safety performance, with NextEra noting a 50% improvement over the past decade. Duke Energy focuses on public engagement to present their comprehensive energy strategy.

"Robert Blue: Thanks, Steven, and good morning. I'll begin my remarks by highlighting our safety performance." --- (D, earning call, 2024/Q1)

"They're very public. We think that will be a great opportunity to really present the case for how we can meet this load within all of the above strategy." --- (DUK, earning call, 2024/Q1)

"Everybody makes safety a priority every single day. And we have a great track record here, improving safety by over 50% in the past decade." --- (NEE, event transcript, 2024/06/11)

"What our issue came down to public policy, and that's why we intervened to understand what was going on and to give FERC an opportunity to opine. So to your point, we didn't have a specific Exelon utility contract for us to come to an agreement on." --- (EXC, earning call, 2024/Q2)

"Robert Blue: Thank you, Steven, and good morning. I'll begin my remarks by highlighting our safety performance." --- (D, earning call, 2024/Q2)

Future Innovations and Research

GE is leveraging its deep expertise, significant R&D investments, and service data to drive breakthrough technologies in the energy sector, including nuclear power. With a $1 billion annual investment in R&D and a focus on innovation, GE Vernova is poised to lead the energy transition with cutting-edge nuclear power solutions.

"And we’re doing this across the industry’s largest and growing fleets. With our deep domain expertise and talent, commitment to innovation and capacity to invest, we’re poised to deliver the breakthrough technologies of the future." --- (GE, earning call, 2024/Q1)

"To capitalize on this opportunity, the company is focused on executing with sustainability, innovation, and lean at its core and is building on its history of innovation by investing approximately $1 billion annually in research and development to drive breakthrough energy transition technologies." --- (GE, press release, 2024/04/02)

"Now GE begins again, three industry leaders fit for purpose for the next century plus and ready to put their stamps on the world: GE HealthCare, GE Vernova and GE Aerospace, each carry forward GE's innovative spirit, customer focus and passion to build a world that works, fully focused on their respective missions to lead precision health, the energy transition and the future of flight." --- (GE, earning call, 2024/Q1)

"Importantly, as we meet higher levels of demand today, services enable us to better understand how our technologies are performing, and we use that intelligence to help shape our future product road maps." --- (GE, earning call, 2024/Q1)