Whither nuclear power? That question has become more important as energy policies evolve to emphasize emissions-free “green” energy and an increased electrification of the U.S. economy. Some environmentalists consider nuclear power to be crucial to reducing carbon emissions; others continue to vehemently oppose nuclear power and believe that our energy must come solely from renewable sources. Asked whether they favor or oppose nuclear power, the public is split.*

Meanwhile, the nuclear power industry itself is in a parlous state for a variety of reasons. These include: (i) decades of construction cost overruns and plant delays because of poor designs, lack of manufacturing expertise, and changing regulations; (ii) political squabbling over spent nuclear fuel disposal; (iii) energy policies, including renewable energy subsidies and mandates, that have distorted electric power markets and made it harder for nuclear plants to compete; and (iv) lower natural gas prices and more efficient gas-fired generators. In the past few years, threatened plant closures have led state policymakers to award subsidies to a number of existing plants, and more such subsidies are likely forthcoming.

Nevertheless, nuclear power provides valuable benefits. It is highly reliable and emissions-free. It provides generation diversity, which can reduce the adverse impacts of fuel price shocks. It does not require backup and storage, unlike wind and solar power generation. New designs for nuclear plants promise lower costs and improved safety. This paper thus concludes that saving nuclear power is crucial to this country’s energy future, especially if that future is based on increased electrification. //

Several policies are necessary to preserve this power source. They include:

• Eliminating subsidies for renewable energy at the state and federal level, including federal production tax credits, state renewable portfolio standards, and feed-in tariffs for renewable resources that are increasingly distorting wholesale electric markets.
• Linking subsidies for existing nuclear plants to wholesale market prices of electricity and combining them with performance incentives that require improved operating efficiency over time. However, before subsidies are granted to prevent a nuclear plant’s closure, a comprehensive cost-benefit analysis should be performed to ensure that the grant is not a futile exercise or is so costly that building replacement generating capacity is a lower-cost alternative.
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https://media4.manhattan-institute.org/sites/default/files/R-0719-JL.pdf