This study investigates investments in facilities for nuclear power generation, identifies issues, and suggests future policy directions.
Since the 1970s, nuclear power has played a significant role in the replacement of oil in the global energy market.
A recent decrease in oil and other energy resources has changed market conditions and nuclear power plant accidents in Three Mile Island in the U.S. and Chernobyl in the U.S.S.R have created uncertainties. However, nuclear energy is expected to play an important role as an energy resource for the long-term future.
Nuclear power generation varies between countries depending on conditions such as natural resources, level of technology, and public opinion. France, West Germany and Japan, countries that have achieved advanced technology and lack natural energy resources have been increasingly relying on nuclear power for consumption, and are expected to continue to expand nuclear power generation.
In Korea, which lacks natural energy resources, the basic direction for nuclear power generation should be set as part of a national policy. However, policy should be in place to ensure nuclear power accounts for a larger share in the future of Korean energy resources. Nuclear power generation requires considerable investments in facilities and, at the same time, creates serious environmental hazards. Therefore, a careful approach needs to be taken when investment decisions on facilities are made.
When policy direction for future nuclear power generation is established and facility investments are decided, the following considerations should be given: First, investment decisions on construction of nuclear power plants should be based on accurate forecasts for demand, and the optimum capacity of the power plants. Second, investment decisions on nuclear facilities need to be made based on appropriate studies. Third, plans for the construction of a nuclear power plant should be considered based on the low limit value of the predicted lowest demand. Fourth, as the relative price of energy resources has recently changed, and the interest and the inflation rates decreased, comparison between economic feasibility of nuclear power and that of bituminous coals should be reviewed. Fifth, nuclear facilities constructed in the future should be determined by keeping pace with development stages of technology. Sixth, it should be reviewed if environmental hazard would be allowed in the proposed area, and to what extent. How to afford environmental costs also needs to be studied when economic feasibility is analyzed. Seventh, nuclear power plants should be constructed when the country is running a surplus balance in international trade, from the macroeconomic perspective.
원자력발전의 투자정책방향(Investment policy direction for nuclear power generation)
|Series Title; No||정책연구시리즈 / 86-11|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Energy|
|Holding||KDI; KDI School|