PwC: “Nuclear energy strenghtens the electric system in a context of geopolitical uncertainty"
The consulting firm PricewaterhouseCoopers has conducted a new analysis in light of the conflict in the Middle East. This conflict has once again put pressure on energy markets, particularly fossil fuels and especially natural gas, leading to an upward impact on electricity prices. The study (at the moment only in Spanish) concludes that “having nuclear energy provides relief for the system and protects consumers from a greater increase in their electricity bills.”
PwC has been developing studies on the key current and future aspects of nuclear energy as a central player in the energy transition. Under the (translated) title “Nuclear energy, a fundamental support to the power system in the face of geopolitical conflicts,” the report analyzes the impact of the conflict in the Middle East on prices and how nuclear energy helps to reduce them.
The price of nuclear fuel remains stable in the face of geopolitical tensions, according to the PwC study
In this new analysis, PwC notes that “natural gas prices have surged following the conflict in the Middle East, while nuclear fuel prices remain stable in the face of this type of geopolitical tension.” According to PwC, shutting down the nuclear fleet would make the system more vulnerable to fluctuations in gas prices. Without nuclear energy in the 2035 horizon—when, if nothing changes, Spain could cease to rely on this technology—“the system will be more exposed to gas price volatility, with electricity market prices increasing by more than €22/MWh in 2035 under a scenario where gas prices remain at current levels due to the conflict in the Middle East.”
In a potential scenario without nuclear energy, the system would be more vulnerable and electricity prices would increase
Assuming a high gas price scenario such as the current one, without the contribution of the Almaraz nuclear power plant in 2025, the daily price of the electricity market would have increased by €47/MWh and CO2 emissions by up to 4.9 million tonnes.
In this context, the study states that Spain's electricity bill "would have risen by 24% for households and SMEs and by 35% for the industry, with an impact of nearly €8.8 billion per year, which for a household consumer would translate into an increase of around €144 per year on their electricity bill."
