Minimizing the Cost of Innovative Nuclear Technology Through Flexibility: The Case of a Demonstration Accelerator-Driven Subcritical Reactor Park

Presented is a methodology to analyze the expected Levelised Cost Of Electricity (LCOE) in the face of technology uncertainty for Accelerator-Driven Subcritical Reactors (ADSRs). It shows that flexibility in the design and deployment strategy of an ADSR park demonstrator significantly reduces its expected LCOE. The methodology recognizes in the conceptual design a range of possible technological outcomes for the ADSR accelerator system. It identifies flexibility “on” and “in” the design to modify the future development path in light of such uncertain scenarios. Uncertainty and flexibility are incorporated in the ADSR valuation. The resulting economic assessment is more realistic than typical discounted cash flow analysis that does not consider a range of development outcomes, or the flexibility to change development path

Hedging Against Technology Risks of the Accelerator System of a First-of-a-Kind Accelerator-Driven Subcritical Reactor

Demonstrating the generation of electricity with Accelerator-Driven Subcritical Reactor (ADSR) technology will incur substantial financial risk both from traditional reactor construction uncertainties and new technology uncertainties such as the reliability of the accelerator system. The sensitivity of the economic value of ADSRs to the reliability of the accelerator system is assessed. The economic assessment considers an ADSR with either one or two linear accelerators driving it. The extent to which a second accelerator improves reliability is determined, as are the costs for that improvement. Two Real Options derived flexible designs for the accelerator system are also considered. In one a single accelerator ADSR can be expanded to having two accelerators, in the other an accelerator is constructed and tested before the reactor is designs for the accelerator system are also considered. In one a single accelerator ADSR can be expanded to having two accelerators, in the other an accelerator is constructed and tested before the reactor is constructed. Finally, a phased multiple-reactor park with a single system of multiple integrated accelerators is suggested and discussed

Considerations in relation to off-site emergency procedures and response for nuclear accidents

The operation of nuclear facilities has, fortunately, not led to many accidents with off-site consequences. However, it is well-recognised that should a large release of radioactivity occur, the effects in the surrounding area and population will be significant. These effects can be mitigated by developing emergency preparedness and response plans prior to the operation of the nuclear facility that can be exercised regularly and implemented if an accident occurs. This review paper details the various stages of a nuclear accident and the corresponding aspects of an emergency preparedness plan that are relevant to these stages, both from a UK and international perspective. The paper also details how certain aspects of emergency preparedness have been affected by the accident at Fukushima Dai-ichi and as a point of comparison how emergency management plans were implemented following the accidents at Three Mile Island 2 and Chernobyl. In addition, the UK’s economic costing model for nuclear accidents COCO-2, and the UK’s Level-3 Probabilistic Safety Assessment code “PACE” are introduced. Finally, the factors that affect the economic impact of a nuclear accident, especially from a UK standpoint, are described

Fuel cycle modelling of open cycle thorium-fuelled nuclear energy systems

In this study, we have sought to determine the advantages, disadvantages, and viability of open cycle thorium–uranium-fuelled (Th–U-fuelled) nuclear energy systems. This has been done by assessing three such systems, each of which requires uranium enriched to ∼20% 235U, in comparison to a reference uranium-fuelled (U-fuelled) system over various performance indicators, spanning material flows, waste composition, economics, and proliferation resistance. The values of these indicators were determined using the UK National Nuclear Laboratory’s fuel cycle modelling code ORION. This code required the results of lattice-physics calculations to model the neutronics of each nuclear energy system, and these were obtained using various nuclear reactor physics codes and burn-up routines. In summary, all three Th–U-fuelled nuclear energy systems required more separative work capacity than the equivalent benchmark U-fuelled system, with larger levelised fuel cycle costs and larger levelised cost of electricity. Although a reduction of ∼6% in the required uranium ore per kWh was seen for one of the Th–U-fuelled systems compared to the reference U-fuelled system, the other two Th–U-fuelled systems required more uranium ore per kWh than the reference. Negligible advantages and disadvantages were observed for the amount and the properties of the spent nuclear fuel (SNF) generated by the systems considered. Two of the Th–U-fuelled systems showed some benefit in terms of proliferation resistance of the SNF generated. Overall, it appears that there is little merit in incorporating thorium into nuclear energy systems operating with open nuclear fuel cycles

Predicting the cost of the consequences of a large nuclear accident in the UK

Nuclear accidents have the potential to lead to significant off-site effects that require actions to minimise the radiological impacts on people. Such countermeasures may include sheltering, evacuation, restrictions on the sale of locally-grown food, and long-term relocation of the population amongst others. Countries with nuclear facilities draw up emergency preparedness plans, and put in place such provisions as distributing instructions and iodine prophylaxis to the local population. Their plans are applied in simulated exercises on a regular basis. The costs associated with emergency preparedness and the safety provisions to reduce the likelihood of an accident, and/or mitigate the consequences, are justified on the basis of the health risks and accident costs averted. There is, of course, only limited actual experience to indicate the likely costs so that much of the costing of accidents is based on calculations. This paper reviews the methodologies used, in particular the approach that has been developed in the UK, to appraise the costs of a hypothetical nuclear accident. Results of analysing a hypothetical nuclear accident at a fictitious reactor site within the United Kingdom are discussed in relation to the accidents at Three Mile Island 2, Chernobyl and Fukushima Dai-ichi

An Agent Based Simulation Of Smart Metering Technology Adoption

Based on the classic behavioural theory “the Theory of Planned Behaviour”, we develop an agent-based model to simulate the diffusion of smart metering technology in the electricity market. We simulate the emergent adoption of smart metering technology under different management strategies and economic regulations. Our research results show that in terms of boosting the take-off of smart meters in the electricity market, choosing the initial users on a random and geographically dispersed basis and encouraging meter competition between energy suppliers can be two very effective strategies. We also observe an “S-curve” diffusion of smart metering technology and a “lock-in” effect in the model. The research results provide us with insights as to effective policies and strategies for the roll-out of smart metering technology in the electricity market.Agent-based simulation, smart metering technology, the Theory of Planned Behaviour, technology diffusion.

Using Probabilistic Analysis to Value Power Generation Investments Under Uncertainty

This paper reviews the limits of the traditional ‘levelised cost’ approach to properly take into account risks and uncertainties when valuing different power generation technologies. We introduce a probabilistic valuation model of investment in three base-load technologies (combined cycle gas turbine, coal plant, and nuclear power plant), and demonstrate using three case studies how such a probabilistic approach provides investors with a much richer analytical framework to assess power investments in liberalised markets. We successively analyse the combined impact of multiple uncertainties on the value of alternative technologies, the value of the operating flexibility of power plant managers to mothball and de-mothball plants, and the value of mixed portfolios of different production technologies that present complementary risk-return profiles.investment, uncertainty, Monte-Carlo simulation, operating flexibility

New Electricity Technologies for a Sustainable Future

There is a growing concern over our reliance on conventional electricity sources and their long-term environmental, climate change, and security of supply implications, and much hope is vested in the ability of future technological progress to tackle these issues. However, informed academic analysis and policy debates on the future of electricity systems must be based on the current state, and prospects of, technological options. This paper is the introductory chapter in the forthcoming book Future Electricity Technologies and Systems. The book comprises contributions from leading experts in their respective technology areas. The chapters present state of the art and likely progress paths of conventional and new electricity generation, networks, storage, and end-use technologies. In this paper we review the growth trend in electricity demand and carbon emissions. We then present a concise overview of the chapters. Finally, we discuss the main contextual factors that influence long-term technological progress.Energy technology, electricity, sustainable development, environment

Dynamics of the UK Natural Gas Industry: System Dynamics Modelling and Long-Term Energy Policy Analysis

We present a dynamic model of the indigenous natural gas industry in the UK. The model has been built using a system dynamics approach. Using the model several scenarios have been analysed. We found that management of the supply-side policy alone cannot substantially postpone the discovery, production and consumption peak. We also found that the dynamics of the main variables, namely, exploration, production and consumption, are sensitive to initial demand conditions. Postponing the onset of gas price increases can therefore be achieved more effectively through efforts to reduce demand growth. One might expect that a low taxation policy would encourage more exploration and production of gas and thereby stimulate higher consumption rates. Instead, there was no overall net effect on production and consumption in the long term. The depletion effect on cost of exploration acts as counterbalance to low taxation policy. Depletion effect causes cost and thus price to rise further which depress consumption rate. The advances in exploration and production technology can delay the peak of exploration, production and consumption. Technological improvements mean lower cost of exploration and production which pressure down long-term pattern of price dynamics.System Dynamics; Simulation Modelling; natural gas; energy policy; long-term policy analysis

Nuclear Power: a Hedge against Uncertain Gas and Carbon Prices?

High fossil fuel prices have rekindled interest in nuclear power. This paper identifies specific nuclear characteristics making it unattractive to merchant generators in liberalised electricity markets, and argues that non-fossil fuel technologies have an overlooked ‘option value’ given fuel and carbon price uncertainty. Stochastic optimisation estimates the company option value of keeping open the choice between nuclear and gas technologies. This option value decreases sharply as the correlation between electricity, gas, and carbon prices rises, casting doubt on whether private investors’ fuel-mix diversification incentives in electricity markets are aligned with the social value of a diverse fuel-mix.Nuclear economics, stochastic optimisation, fuel-mix, diversification.