The role of nuclear power in the global energy mix
Nuclear energy is addressed from various angles and in connection with several other I-Tésé themes.
It is one of the technologies underpinning the energy transition, whether for its production of:
Electricity production
In terms of electricity production, the challenge of decarbonising the economy involves the electrification of usage, leading to an increase in installed capacity, primarily that of intermittent renewable energy sources (IRES). These are the fastest sources of decarbonised energy to deploy. The widespread deployment of these sources across Europe reinforces the need for flexibility solutions to compensate for their intermittency. The requirement for flexibility raises several questions:
- How could nuclear power contribute to the flexibility of the electricity production mix?
- How could it adjust to cope with the significant increase in IREs in the European electricity mix?
- What would the consequences be for its load factor and the margins it could ultimately generate from selling the electricity it produces? In other words, to what extent would electricity produced when required be sufficiently well remunerated compared to electricity not produced during periods of high IREs production, when nuclear power would have to be curtailed, to guarantee an acceptable level of profitability?
- Which market regulation instruments could compensate for the loss of production (and potentially revenue) due to nuclear power fluctuations? How effective and robust would these instruments be in the face of high construction costs that need to be recouped?
Heat production
Nuclear heat production raises different economic questions to those related to electricity production. :
The ability of nuclear power to produce thermal energy that can be used directly or converted into electricity raises questions about the economic viability of both options.
The geographical proximity required between the reactor and the end user affects the profitability of the heat produced, as heat cannot be transported efficiently over long distances, unlike electricity.
As heat production is currently mainly fossil-based, the profitability of replacing it with nuclear power depends on factors such as the price of natural gas, the carbon tax and the cost of existing fossil fuel infrastructure. This is not the case for nuclear power generation.
Integrating nuclear heat into industrial consumer processes creates an interest in market structures (e.g. long-term contracts with energy-intensive industrial companies). The profitability of production may therefore depend on the viability and stability of a limited number of players.
Hydrogen production
Similar questions to those raised by heat production arise when it comes to hydrogen production:
The advisability of coupling with electricity production (e.g. for storing surplus electricity), particularly for improving the load factor of the reactors used;
The competition with other hydrogen production processes;
The integration of hydrogen production into industrial processes (where, in the case of small reactors, locating the reactor near or directly on the industrial site can have a significant impact on costs).
Combustible and cycle management
In addition to considerations relating to the use of nuclear energy for the production of electricity, heat or hydrogen, a key issue is that of combustible resources and cycle management. The anticipated increase in demand for carbon-free electricity, coupled with new uses for nuclear power, is giving rise to issues related to the emergence of new producing countries, markets, players and customers (such as data centres), as well as new technologies (SMR/AMR).
In this context, I-Tésé is exploring the role of nuclear power in the global energy system, as well as issues related to combustible supply and availability.