The Urgent Need to Decarbonize Energy Production for Mitigating Climate Change Sustains Global Focus on Nuclear Power

Urgent need to revive focus on nuclear power as a long term, reliable, sustainable, and clean electricity source with minimal carbon emissions amidst short term issues and challenges is poised to drive the global market for Nuclear Power to reach 3.1 thousand TeraWatt-hours (TWh) by 2024.

There is an urgent need for generating more not less carbon-free electricity for combating climate change. While renewables, including solar and wind power, generate carbon-free electricity, their contribution towards carbon-free emissions is negligible in comparison to that of nuclear energy. Besides providing a major source of commercial electric power, nuclear power is also useful in powering majority of military submarines and aircraft carriers enabling the realization of the industrial scale ‘plutonium economy’ vision that aims at making nuclear power socially, environmentally, economically, and politically acceptable. Countries including the US, Russia, France, China and South Korea account for nearly 70% of global nuclear electricity production. Over the last few decades, the industry has received major setback from Fukushima, Three Mile Island, and Chernobyl disasters. Following the 2011 Fukushima nuclear disaster coupled with declining costs of alternative energy sources, nuclear power is witnessing waning interest and finding it extremely challenging to compete with other renewable energy sources. In contrast to solar and wind that increased their share by 35% and 17% in 2017, nuclear capacity posted a marginal growth of approximately 1%. The total number of under construction facilities also declined from 68 reactors to 50 reactors between 2013 and mid-2018. Around 16 of these nuclear plants are in China, and nearly 33 facilities are behind their schedule. Also, countries including South Korea, Germany, and Taiwan are implementing policies to reduce or phase-out nuclear generation.

Future growth in the market will be driven by focus on reviving nuclear power as a source of clean, reliable and long-term energy that safeguards from fuel price volatility and climate change issues. Myriad benefits of nuclear power that is sustaining market growth despite facing tough times in view of the Japanese Fukushima nuclear disaster include reliability, elimination of weather dependence, long term cost benefits, environmentally clean, control of Greenhouse (GHG) gas emissions, and low solid waste volume compared to coal. Despite controversies and uncertainties surrounding its operations and sluggish performance in recent years, the global nuclear power generation is projected to grow at a positive rate in the coming years as growing concerns over energy security, gas emissions and rising fossil fuel prices continue to encourage the development of new reactors. Other important factors poised to benefit market prospects include new nuclear plant constructions; uprating and life-extension of existing nuclear reactors; tougher safety norms; growing interest in Small Modular Reactors (SMR) comprising designs with power generation capacity of 300 MW to 500 MW; and transformation of nuclear power policies by governments across the world boosting public confidence in the safety and security profile of nuclear energy.

As stated by the new market research report on Nuclear Power, Europe represents the largest market worldwide, followed by the United States. The US emerged as the leading producer of nuclear electricity over the years, followed by Russia, France, and Japan. While established nuclear countries such as the US and UK are expected to remain the core markets for nuclear energy projects, future demand is anticipated from the Asian market, in particular China and India. In addition to spearheading projects across countries such as the UK, Argentina, Romania, and Pakistan, China is pursuing opportunities across Saudi Arabia, South Africa, Kazakhstan, Thailand, and Turkey. Japan represents the fastest growing market with a CAGR of 14.7% over the analysis period.

Key players in the market include Axpo Group, Bruce Power L.P., China General Nuclear Power Group, China National Nuclear Corporation, Dongfang Electric Corporation Limited, Doosan Babcock Limited, E.ON SE, EDF (Electricité de France) SA, EletrobrasTermonuclear S.A., ENGIE Electrabel, Exelon Corporation, GE Hitachi Nuclear Energy, Korea Hydro & Nuclear Power Co., Ltd., Mitsubishi Heavy Industries Ltd., NNEGC Energoatom, Nuclear Power Corporation of India Limited, Ontario Power Generation, Orano, ROSATOM, Atomstroyexport, Shanghai Electric Group Company Limited, Tokyo Electric Power Company Holdings, Toshiba Corporation, and Vattenfall AB, among others.

The research report titled “Nuclear Power – Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, issues, challenges, mergers, acquisitions, and other strategic industry activities of major players worldwide. The report provides market estimates and projections in terms of annual nuclear power generation in TeraWatt-hours (TWh) for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, UK, Spain, Russia, Sweden, Ukraine, and Rest of Europe), Asia-Pacific (China, India, Pakistan, South Korea, and Taiwan), and Rest of World (Argentina, Brazil, Mexico, South Africa, and Iran).

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