Sunday, February 07, 2010
Generate jobs and power the green way
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W. Reed Johnson
Johnson, of Lancaster, is professor emeritus of nuclear engineering at the University of Virginia.
The construction of nuclear power plants is a potentially powerful engine for economic growth and job creation. After three decades without starting a single new plant, the nuclear power industry is ready to build again.
Electric utilities in the United States have submitted applications to the Nuclear Regulatory Commission for permits to build and operate nearly 30 new plants. These units are necessary to meet the country's increasing need for electricity that is clean and affordable.
The United States has 104 nuclear plants in operation, producing about 20 percent of the nation's electric power. In Virginia, the North Anna and Surry nuclear plants are among the best performing power plants in the country. By using these four units, Dominion avoids the emission of some 30 million tons a year of carbon dioxide. The initial cost of building a new plant is high, but nuclear-generated electricity over a reactor's lifetime is cheaper to produce than power from coal and gas-fired plants. That's because nuclear plants have very low, predictable fuel costs.
To increase the supply of nuclear power and other clean energy sources, Congress has approved a limited program of loan guarantees. These incentives will help provide the financial security that's needed to increase the use of clean energy technologies. Loan guarantees significantly reduce the cost of obtaining private financing from large banks. And they are a good investment.
If carbon dioxide is priced at $30 per ton under a cap-and-trade system, Virginia's existing nuclear plants stand to account for almost $900 million a year in avoided greenhouse gases. Because they make such good economic sense, the president proposes tripling the level of loan guarantees to more than $54 billion. If approved by Congress, the increase in loan guarantees would cover 12 nuclear plants.
But also consider what building new nuclear plants would mean for employment. It takes all types of skilled craft workers to build a plant. Construction of each plant provides several years of employment for about 2,500 workers -- highly qualified pipefitters, welders, masons, ironworkers, electricians and other crafts with sophisticated skills. Several companies that supply components and equipment for new plants have increased their manufacturing capacity. Here in Virginia, Northrop Grumman Shipbuilding and Areva have invested more than $360 million in a facility at Newport News to manufacture heavy nuclear components.
By any yardstick, a nuclear plant is a huge source of jobs and revenue, generating an estimated $430 million a year in spending on goods, services and labor and about $20 million in state and local tax revenue Additionally, each nuclear power plant provides 400 to 800 permanent jobs.
All told, an estimated 350,000 jobs will be created to build and operate the new generation of nuclear plants and to manufacture components for them. A serious effort to speed the construction of new reactors would be a welcome development for America's craft workers, and it would send a powerful message that should reverberate throughout the economy. Nuclear energy has demonstrated that it is safe, affordable reliable and environmentally friendly. It is a project Congress could unite behind.
