As the Trump transition team prepares to take power in Washington, they should be making the conservative case for nuclear energy.
During the campaign, President-elect Donald Trump declared: “Nuclear power is a valuable source of energy and should be part of an all-the-above program for providing power for America long into the future. We can make nuclear power safer, and its outputs are extraordinary given the investment we should make.”
Being pro-nuclear doesn’t require adhering to any particular orthodoxy on climate change or greenhouse gases. Conservatives should support America’s nuclear-energy sector for three reasons: generation diversity, technological leadership, and land sparing.
Before going further, let’s be clear: The U.S. nuclear sector is in crisis. Over the past three years, utilities from Vermont to California have shuttered six reactors, and another five are slated to close. The most recent announced closure, of the 800-megawatt Palisades nuclear plant in Michigan, came just days after Illinois legislators passed a bill that will provide subsidies to keep three reactors in that state in operation. While it’s unclear how many reactors may ultimately be prematurely shuttered, the Center for Energy Economics at the University of Texas has estimated that up to 40 percent of all U.S. nuclear capacity could be closed over the next decade or so.
Many factors are to blame for the nuclear sector’s woes, including low natural-gas prices, aging reactors, post-Fukushima regulations, and heavily subsidized wind and solar. The result is that many reactors can’t make money selling their electricity into wholesale markets, where prices are at, or near, 15-year lows.
What is to be done? President-elect Trump and Congress should move to preserve existing reactors and pave the way for the next generation of safer, cheaper reactors. To be sure, keeping existing reactors will require some of them to get financial help. But those subsidies will help the U.S. maintain a diverse set of generation assets. The polar vortex in early 2014, when extreme cold led to a surge in electricity demand, proved the importance of that diversity. During that time, numerous coal- and natural gas-fired plants faltered, but America’s reactor fleet operated at 95 percent of its capacity. Without those plants, large parts of the country could have been hit by blackouts.