Number: RL33442
Title: Nuclear Power: Outlook for New U.S. Reactors
Authors: Larry Parker and Mark Holt, Resources, Science, and Industry Division 
Abstract: This report includes analyses of the potential effect of the tax credit for nuclear power provided by the Energy Policy Act of 2005 and possible competitive effects of various proposals to limit greenhouse gas emissions. Under baseline assumptions, the cost of electricity from new nuclear power plants is likely to be higher than power generated by new coal- and natural gas-fired plants. The new nuclear tax credit would more than offset that cost disadvantage, but it is limited to the first 6,000 megawatts of new nuclear generating capacity. That is the capacity of about four to six reactors, although the credits could be spread among a larger number of new reactors under current rules. If the tax credit results in new reactor construction, the next question will be whether nuclear construction would continue without further credits. Greenhouse gas legislation could also be an important factor in nuclear power economics; analysis shows that some proposals, if enacted, could push the cost of coal- and natural gas-fired electricity above projected nuclear costs.
Pages: 24
Date: March 9, 2007