Resources & Stats

Nuclear energy facilities produce nearly 20 percent of U.S. electricity and are essential to helping meet growing demand for electricity and preserving the technology diversity that is the strength of the U.S. electric supply system.

April 2012

Key Facts

• Nuclear energy plays a vital role in meeting our nation’s electricity needs, protecting the environment, and preserving the fuel and technology diversity that is the strength of the U.S. electricity supply system.

• 104 nuclear reactors in 31 states operate 24/7, producing almost 20 percent of U.S. electricity while emitting no carbon dioxide, sulfur dioxide or nitrogen oxide (a precursor to ground-level ozone).

• Nuclear energy generates more electricity than any other source in Connecticut, Illinois, New Hampshire, New Jersey, South Carolina, Vermont and Virginia. Nationwide, nuclear plants generated an estimated 789 billion kilowatt-hours of electricity in 2011.

• Nuclear energy facilities play a powerful role in preventing greenhouse gases in the electricity sector. Carbon-free sources account for 30 percent of U.S. electricity, and nuclear energy facilities generate almost three-fourths of it.

• U.S. electricity demand will rise 22 percent by 2035, according to the U.S. Energy Information Administration’s Annual Energy Outlook 2012.

• Even with conservation and efficiency measures, the United States will need hundreds of new power plants from a diverse portfolio of fuel sources to supply electricity for a high standard of living and to promote domestic economic growth. Maintaining nuclear energy’s nearly 20 percent share of generation would require building about one reactor per year starting in 2016, or 20 to 25 new units by 2035.

• Small, modular reactors can complement large-scale reactors by expanding the level of deployment and application options for carbon-free nuclear energy. Small-scale reactors will provide energy companies and other users with a broader array of energy options.

• The energy industry is planning new, advanced nuclear plants to meet growing electricity demand while enhancing U.S. energy independence and reducing greenhouse gases.

New Nuclear Facilities Ready to Start Construction
The independent U.S. Nuclear Regulatory Commission granted a license in February 2012 for construction and operation of the first new U.S. nuclear reactors in three decades. Southern Nuclear expects to complete the two reactors at its Vogtle site in Georgia by in 2016 and 2017. NRC certified Westinghouse Electric Co.’s revised AP1000 reactor design in December 2011. The reactor will be used at the Vogtle facility and at South Carolina Electric & Gas Co.’s V.C. Summer site in South Carolina, which was licensed by the NRC in March 2012.

Nuclear Energy Is Vital to Curbing Climate Change
Nuclear plants are essential to protect the nation’s air quality and stem global climate change. Without nuclear energy facilities, levels of harmful emissions released into the atmosphere would increase significantly—particularly those that contribute to acid rain (sulfur dioxide) and urban smog (nitrogen dioxide).

Nuclear energy facilities do not produce any greenhouse gases generating electricity and have among the lowest total “life-cycle” carbon emissions. This reflects all related activities, from uranium mining to construction and decommissioning. The life-cycle carbon footprint of a nuclear energy facility is comparable to that of a wind or hydropower plant, yet nuclear is a 24/7 large-scale power producer.

The U.S Energy Information Administration forecasts that the United States will need 23 percent more electricity by 2035. To meet the expected increase in electricity demand, the electric power sector must invest an estimated $1.5 trillion to $2 trillion in new power plants, transmission and distribution systems, and environmental controls. The industry faces a significant challenge in financing this investment.

Maintaining Supply Diversity
A diverse mix of energy sources enables America to balance the cost of electricity production, availability and environmental impacts. Coal-fired power plants generate nearly half of the nation’s electricity. Natural gas-fired plants generate 24 percent and nuclear plants almost 20 percent. The rest comes from hydroelectric dams and small amounts of renewable energy.

Fuel diversity is one of the great strengths of the U.S. electric supply system. Each source of electricity has unique advantages and disadvantages, and each has its place in a balanced electricity supply portfolio.

Natural gas-fired electricity generation has more than doubled since 1990. Nearly all power plants built over the past 15 years are fueled by natural gas. However, natural gas is subject to price fluctuations because it also is used as a heating fuel and in industrial processes.

The uranium fuel for U.S. nuclear plants is abundant, readily available from reliable allies, such as Canada and Australia, and low in cost. Coupled with industry success over the past 20 years in reducing operating costs, the low fuel cost makes America’s 104 nuclear energy facilities among the lowest-cost sources of electricity available.

Growing Significance of Clean-Air Benefits
Clean-air energy sources—nuclear energy facilities, hydroelectric power and renewables—help minimize the production of greenhouse gases and pollutants because they generate electricity that otherwise would have to come from burning fossil fuels. The more electricity each source generates, the more it helps meet the nation’s clean-air goals.

The electricity produced by nuclear energy facilities displaces electricity that otherwise would be supplied by oil-, gas- or coal-fired generating capacity. Hence, nuclear energy plays a vital role in our national air- quality compliance programs.

In 2010, nuclear energy facilities prevented the emission of about 1.6 million short tons of sulfur dioxide and about 0.6 million short tons of smog-causing nitrogen oxide—pollutants controlled by the Clean Air Act.

Nuclear plants also prevented the discharge of almost 650 million metric tons of carbon dioxide into the atmosphere in 2010. This is equal to the amount of carbon dioxide released from nearly all U.S. passenger cars. In the near future, nuclear energy can help reduce emissions in the transportation sector by providing carbon-free electricity to plug-in hybrid electric vehicles and electric light rail.

U.S. electricity demand is projected to rise 23 percent by 2035. Based on this data, maintaining nuclear energy’s current 20 percent share of generation would require building about one reactor per year starting in 2016, or 20 to 25 new units by 2035.

Other studies have concluded that nuclear energy must continue to play a role in supplying baseload electricity and reducing greenhouse gas emissions. These include:

• Environmental Protection Agency, “EPA Analysis of the American Power Act of 2010 (Kerry/ Lieberman),” June 2010: This policy scenario for reducing greenhouse gas emissions would require more than doubling total nuclear capacity by 2050. If all existing U.S. operating reactors retire at 60 years, the U.S. will need to build another 253 gigawatts of nuclear capacity (approximately 181 new reactors).
• Electric Power Research Institute, “Prism/MERGE Analyses: 2009 Update”: A full portfolio approach to reducing carbon dioxide emissions by 41 percent from 2005 levels by 2030 includes 45 new nuclear reactors.
• OECD/International Energy Agency, “World Energy Outlook 2011”: Stabilizing atmospheric concentrations of carbon dioxide at 450 parts per million would require more than doubling global nuclear energy capacity by 2035.

Legislative Support for New Nuclear Energy Facilities
U.S. government policies and practices support the development of nuclear energy and other clean energy technologies through financial incentives made available by the Energy Policy Act of 2005. The law sustains a long-standing government tradition of providing limited financial backing for energy projects vital to the nation’s infrastructure.

The bill provides limited incentives to jump-start new reactor construction, just as similar legislation has done for wind and other power technologies. These include loan guarantees for clean energy technologies, including nuclear and renewables; production tax credits for new advanced reactors; and federal insurance that would protect a company building a new plant in the event of unforeseen regulatory delays.

The legislation also authorized almost $3 billion for nuclear energy research, including funding for a new demonstration hydrogen reactor, as well as hydrogen demonstration projects at existing reactors.

In 2011, omnibus appropriations legislation for 2012 reaffirmed the federal government’s support for nuclear energy. The Department of Energy was allocated $769 million for nuclear science and technology, $68 million of which is for the development of small reactors.

Under a cost-shared government-industry program, DOE will select two small reactor designs to shepherd through initial NRC technical reviews and licensing. The small reactor licensing program is similar to the Nuclear Power 2010 program—an industry-government partnership that helped streamline licensing processes for large reactors, including the AP-1000 reactor design which will be used at the Vogtle and V.C. Summer sites.

The appropriations legislation provided $187 million for fuel cycle research and development programs, including $60 million for used nuclear fuel disposition and another $59 million for advanced fuels research.

Small Reactors Complement Large-Scale Reactors
Small, modular reactors can complement large-scale reactors by expanding the level of deployment and application options for carbon-free nuclear energy. Small-scale reactors provide energy companies and other users with a broader array of energy options.

Their small size—typically less than 300 megawatts—and modular construction will allow these reactors to be built in a controlled factory setting and installed module by module, reducing the financing challenge and matching a variety of needs for low-carbon energy. For more information, see NEI’s fact sheet “Small Reactors Provide Clean, Safe Power and Industrial Process Heat.”