Economics of nuclear power in Canada

By the end of 1990, the total installed generating capacity in Canada will be in excess of 104,000 MWe, of which 13% are CANDU nuclear, 56% hydro, 28% coal-and oil-fired, and the remaining 3% are diesel generators and combustion turbine capacities. Although Canada is blessed with abundant hydro potentials estimated at 188,191 MWe, only 46,084 MWe are thought to be economical and environmentally acceptable, most of which require long distance transmission lines to bring the power to the load centres. The commercialization of the CANDU system in Canada has demonstrated that CANDU is and will remain an economic and environmentally benign option to meet the current and future electrical energy needs of Canadians. This paper traces the evolution of the CANDU system in Canada, provides an analysis of the actual costs of nuclear as compared to other alternatives, and evaluates the long-term prospects of CANDU as an economical source of energy to supply the Canadian needs. Measures to extend the economic lives of CANDU reactors through rehabilitation and re-tubing programs will be discussed and their impacts on the levelized unit energy cost presented. The Canadian approach to irradiate fuel management and decommissioning will also be briefly discussed, and their impact on energy cost analyzed. In those provinces with abundant hydro electric potentials, an attempt is made to identify the timing whereby CANDU would become the economic choice. (author). 4 figs, 6 tabs