Response to IEA/OECD NEA report
10 December 2020
The New Nuclear Watch Institute
The joint International Energy Agency/OECD NEA report on electricity generation costs is a welcome dose of common sense.
This study, based on data from 243 plants in 24 OECD and non-OECD countries, confirms that the levelised cost of electricity of low carbon generation technologies is increasingly falling below that of fossil fuels.
It is great news that at the current EU carbon price of €30, which is very likely to rise over the next two years, coal fired power generation is already becoming uncompetitive. The continued fall in the cost of renewable energy is also welcome.
However the most important conclusion from the report is that, once system costs are taken into account, the cheapest way to produce low carbon electricity is by the long term operation of nuclear plants.
Let's hope this is noticed in Brussels. It's time the European Commission's ambivalent view of nuclear is replaced by a recognition that decarbonising electricity generation simply can't be done without a big contribution from nuclear power.