Today, nuclear energy supplies more electricity than ever before, and it does so on a global basis. Over 11% of the world’s electricity is supplied by 30 countries operating more than 436 commercial nuclear reactors. There are 67 more nuclear reactors currently under construction as well. The United States houses 61 nuclear power plants with 99 operational commercial nuclear reactors.
Currently, the United States is not only a major contributor of nuclear power, they are the largest. China, however, is in the process of completing 100 new units, which are expected to be completed in ten years or more.
Reactors in the United States have an average age of 34 years, and approximately 90% of these reactors will be relicensed in the near future. Of these reactors, some will be relicensed for 20 years while others will be relicensed for 40.
According to the U.S. Energy Information Administration, a new reactor hasn’t come online for thirty years. This recently changed as a new reactor, the Tennessee Valley Authority’s Watts Bar Unit 2, came online in June 2016, will be commercially operational by the end of 2016.
The construction of additional reactors, according to the U.S. Energy Information Administration, was approved by the U.S. Nuclear Regulatory Commission in February 2012 and March 2012. Southern Company was approved to build Units 3 and 4 at its Vogtle planet in Georgia, and South Carolina Electric and Gas was approved to construct two reactors as well; Units 2 and 3 will be constructed in South Carolina at its Virgil C. Summer plant.
Given the growth of this industry, investing in nuclear energy appears to be a viable option. Furthermore, a nuclear energy investment can assist with the advancement of nuclear technologies. In December 2014, $12.6 billion in loan guarantees for this express purpose was announced by the U.S. Department of Energy’s Loan Programs Office. These funds will provide valuable resources for research and development, which includes, but is not limited to, small modular reactors, molten salt reactors, and breeder reactors.
When considering investing in energy companies, especially nuclear energy companies, it’s also important to note the economic effects these companies have on the local, state, and national economy. Entergy’s Indian Point 2 and 3 reactors have generated approximately $2.5 billion to the country and $1.6 billion to the state of New York where the plant is located.
It’s also important to consider how making a power plant investment can contribute to the welfare of a company’s employees, which benefits the local economy in turn. The Indian Point Reactors, for example, have 1,000 employees, an annual payroll of around $140 million, and contribute around $30 million in state and local property taxes.
There are quite a few viable options when choosing to make a nuclear energy investment. It makes sense to conduct extensive research on publicly traded nuclear companies as well as nuclear stocks. Once a choice is made, just know that your nuclear energy investment will make a difference in the economy as well as the future power industry.
