Exelon, the largest operator of nuclear power plants in the United States has filed a license application with the US Nuclear Regulatory Commission (US-NRC) to build two new nuclear power plants near Victoria, Texas. When operating, the plants will produce zero units of carbon dioxide, nitrogen oxides, mercury, sulfur oxides, and fly ash.
Exelon has chosen the Economic Simplified Boiling Water Reactor (ESBWR) marketed by GE-Hitachi Nuclear Energy. Each of the reactors will produce approximately 1,500 MW of electric power.
One of the key design features of the ESBWR is a large degree of passive safety provided by large water reservoirs, natural coolant circulation and safety systems that operate without any electrical power. (Link to animation of ESBWR safety system operation)
Exelon has not announced the expected project cost. It is worth noting that a 3,000 MWe power station operating at an average capacity factor of 90% – which is typical for a US nuclear power plant – can produce more than 23 million MW-hours of electricity each year. Wholesale power costs in Texas vary considerably on a daily basis; in 2008, the average daily wholesale price has been about $72 per MW-hour. (Source: US Energy Information Agency Intercontinental Exchange Wholesale Market Data)
A first order approximation for the annual revenue potential for a 3,000 MWe plant in Texas would therefore be 23,000,000 x $72 = $1.6 Billion. If the new reactors are able to operate at the current fleet average O&M cost of $17.60 per MW-hour, that would leave $1.2 billion per year available for loan repayment and corporate profit. Predicting prices and costs 8-10 years into the future is a job for soothsayers.
Those kind of numbers help to explain why there have been 12 applications to the NRC during the past 14 months, despite the fact that the Energy Policy Act of 2005 only provides direct subsidies for the first 6000 MW of new nuclear power (4-6 units depending on size).
In addition to Exelon’s recent announcement, several other applications have included multiple units, the total number of reactors currently being considered for licensing is 17. Four of the applications covering 8 reactors are on sites that currently do not host nuclear power stations.
During the construction period, the new Exelon units could employ as many as 6,300 workers. Once the plants are operating, the steady state employment level will be approximately 800 people with annual salaries starting at about $65,000.
Image – Aerial view of Lake Anna Nuclear Power Station in Virginia, another plant built with an artificial lake for cooling.
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