Uprate Projects Increase as Nuclear New-Build Activity Wanes

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Researched by Industrial Info Resources (Sugar Land, Texas)--In the U.S., approximately 48,000 megawatts (MW) of nuclear power generation capacity is being planned that is in various stages of site and equipment studies, preliminary design, and permitting. But how many of these nuclear power plants will actually be built?

Nuclear power plants are astronomically expensive to construct. While the nuclear industry is trying to make a comeback with enticements such as zero emissions and reduced dependency on foreign oils, the much-hyped "nuclear renaissance" will not be occurring anytime in the near future.

Cost estimates for nuclear plants have risen significantly in recent years because of the increased prices of construction and equipment. Developers have abandoned projects because of financing difficulties--the most notable being the South Texas Project units 3 and 4 and the Calvert Cliffs Unit 3 project in Maryland. Nuclear projects require millions of hours of planning and engineering, and three to four years for permitting and regulatory approvals, before the equipment manufacturers can even negotiate a contract. All of which simply doesn't make economic sense for the ratepayers.

Much more economically sensible is the refurbishing and upgrading existing plants to enhance operations. Such projects can be accomplished for a fraction of the cost of building a new plant.

Although many reactors are nearing the end of their lives and need extensive upgrades or rehabilitation to continue operating, uprates will increase a unit's power output and can be performed by turbine modifications; increased steam flow; instrumentation and controls modifications; generator rewinds; piping modifications; pump upgrades; and other methods.

Several power producers are in the midst of uprate projects for their nuclear plants. Dominion Virginia Power, a subsidiary of Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia), recently completed an uprate on Unit 2 at the company's nuclear power plant in Surry, Virginia. A $150 million turbine retrofit increased the unit's generating capacity 41 MW. As new-build nuclear power projects are increasingly delayed, put on hold or cancelled, nuclear power operators seem to be increasingly making the best of existing facilities through such uprate and modernization projects.

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