Energy in Canada
An Affordable Alternative
When we think of the benefits and impacts of nuclear energy production and use, environmental concerns are often top-of-mind along with issues of safety. But the economics of nuclear energy are also important to consider. Not only is nuclear energy an affordable alternative to other sources of electricity, it also makes a substantial contribution to the Canadian economy.
According to the Canadian Energy Research Institute, nuclear is one of the most inexpensive sources of electricity. The relative cost (44KB PDF) of nuclear energy generation is lower than solar, hydro, wind and gas. According to Statistics Canada (588KB PDF), in 2005 the fuel cost of nuclear generation was approximately $2.05/MWh compared with $41.066/MWh for coal-fired generation.
The reason for this low cost is that uranium, which powers our nuclear reactors, is plentiful and relatively inexpensive. This reliance on uranium also translates into stability in the cost of electricity from nuclear power over many years. In fact (44KB PDF), a 100 per cent increase in the price of uranium results in less than a five per cent increase in the price of electricity.
Canada as a whole also benefits economically from nuclear power through its contribution to Canada's Gross Domestic Product (GDP), government revenues, electricity and uranium exports and employment. The over 150 companies associated with Canada's nuclear industry generate $6.6 billion in revenues and $1.5 billion in federal and provincial revenues through taxes. The industry supports 21,000 direct jobs, 10,000 indirect jobs (contractors to the industry) plus 40,000 spin-off jobs.
Given the likelihood of climbing fossil fuel prices in the coming years, the relatively cheap cost of producing nuclear energy is good news for Canadians. Add this to the industry's current and potential contribution to Canada's economy and expanding nuclear in the future makes good economic sense.
The Future of Nuclear
In 1945, Canada became the second country to build and operate a nuclear reactor - a milestone that would lay the foundation for Canada's nuclear future. Today, Canada is recognized as a leader in nuclear science including medicine, manufacturing, agriculture and electricity generation. More than 60 years of experience in the industry has helped showcase Canada's commitment to reducing greenhouse gas emissions and providing reliable and safe energy.
Sixty years in the industry has also meant several technological advancements, including the development of the renowned CANDU (Canada Deuterium Uranium) Reactor by Atomic Energy of Canada Limited (AECL), a reactor that uses natural uranium, resulting in lower fuel costs and higher fuel efficiency. In 1987, along with the Alouette space satellite and the CN Tower, CANDU was named one of Canada's top 10 engineering achievements of the century.
Currently, AECL is developing the Advanced CANDU Reactor (ACR-1000), which is expected to enter the market in 2016. Not only does the ACR-1000 add a competitive advantage against other generation methods through lower costs and shorter construction times, but it also offers benefits in terms of fuel use with advancements such as online refuelling, simple fuel design and a flexible fuel cycle. AECL reports that more than 48 heavy water moderated reactors based on the CANDU design are either in operation, under construction, or under refurbishment worldwide.
As support for a diversified energy mix grows and reactors continue to advance, future CANDU reactors offer even greater efficiency and safety levels in more compact designs, giving Canada opportunities to continue operating as a leader in nuclear science.
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