Nuclear energy is essential for the competitiveness of the EU, according to the Draghi Report
Former Prime Minister of Italy and former President of the European Central Bank, Mario Draghi, has drafted, at the request of the European Union, a report on “The future of European competitiveness”, which was recently presented together with its president, Ursula von der Leyen.
One of the main objectives of the European Union must be to have a joint plan for decarbonization, competitiveness and security of supply in the field of energy, according to the Draghi Report.
Nuclear energy is essential
In that regard, nuclear energy is an essential component of the energy system: “decarbonization offers the opportunity for Europe to have lower energy prices and to lead the development of clean technologies (“clean tech”), while which is safer from a supply point of view. This implies the massive commissioning of clean energy sources with low marginal production costs, such as renewables and nuclear.”
On the other hand, the report indicates that “although Europe reduces its dependence on natural gas and increases investments in the production of clean electrical energy, the market rules of the energy sector do not fully decouple the price of renewable energy and nuclear energy from the higher and more volatile prices of fossil fuels, preventing end consumers from obtaining the full benefits of using those clean sources.” The use of long-term financial contracts, such as PPA (Power Purchase Agreement) contracts or contracts for differences, can help with this decoupling.
The Draghi report focuses on the development of renewable and nuclear energy as paths to decarbonization
The report also highlights that “to accelerate decarbonization in an cost-efficient way, it is necessary to balance all available solutions, using a technology-neutral approach. Thus, renewables, nuclear, hydrogen, bioenergy and the capture, use and storage of CO2 should be included. To do this, it has to be backed by massive public and private financing, which requires investments not seen before in the last half century.”
New developments in nuclear technology
In addition, the importance of new developments in nuclear technology in ensuring a reliable supply and in promoting the leadership of the European Union in the nuclear industry at a global level is also highlighted. To this end, it recommends that the operation of current plants be extended and that the development of new units be accelerated, maintaining the European supply chain.
The Draghi Report recommends to extend the operation of the reactors and the construction of new units
In summary, the Draghi Report shows that nuclear energy has a fundamental role in decarbonizing the economy and achieving security of supply.
Cover image: European Parliament
