Nuclear power plants in a competitive electricity market

摘要

Electricity demand is growing in the world by an average rate of 3% and, according to the International Energy Agency, is going to keep this pace of growth for the 1st quarter of the 21st century. At the same time, the role of the nuclear in the world energy mix is diminishing, and in 2020 only 9% of the world electricity will be produced at the nuclear plants versus 17% in 2000. The main reasons for the nuclear power diminishing share in the world market are not environmental or safety problems, as one may assume, but technical and economical. Long construction time, high capital cost, huge liabilities connected with the spent nuclear fuel and radioactive waste treatment, storage and final disposal are the main factors restricting the further growth of the nuclear power. Nevertheless, in the liberalized markets (U. K., Germany, Scandinavian countries) nuclear power plants are operating rather successfully. In a short run nuclear plants may become very competitive as they have very low short-run marginal costs, but in the long run they may become very incompetitive. The Ignalina NPP plays the dominant role in the Lithuanian electricity market, producing more than 75% of the total domestic electricity. It produces the cheapest electricity in Lithuania, mostly due to its higher availability, than the thermal power plants. The price of electricity sold L Ignalina is also lower as it does not cover all costs connected with the future decommissioning of the plant, spent fu storage and final disposal. If at least part of this cost were included into the selling price, Ignalina might become high competitive in a liberalised electricity market. As the Li-thuanian Electricity law requires to deregulate electricity generation prices, these prices should be set by the ma In order to support the competitiveness of the nuclear power plant, the Government of Lithuania has decided to take aside a part of its stranded cost and cover it through the public service obligations.