PwC: “Nuclear energy has not hindered the development of renewable energy”

PwC has produced several studies on the key present and future aspects of nuclear energy as a central component of the energy transition. Under the title “Energy Transition: Nuclear Energy as a Complement to Renewable Development” (as translated from Spanish), the firm analysed the role of nuclear technology in the technical operation of the power system and the need for competitive energy sources that support the achievement of climate commitments.

In this new report, PwC states that “nuclear energy has not slowed the pace of renewable development.” It argues that renewable deployment “has instead been hindered by permitting processes, grid limitations and the lack of demand during solar generation hours,” adding that “the challenge of renewable development can be addressed through greater electrification and demand growth, increased storage capacity to displace thermal generation, and greater investment in electricity grids.”

Faced with the scenario of phasing out nuclear energy by 2035, as is currently established, PwC states that “the nuclear shutdown is not a solution,” since it “increases electricity bills and raises CO₂ emissions.”

In an analysis of the wholesale electricity market, the study indicates that “nuclear competes in the market like any other technology. During periods of high renewable generation it is displaced by cheaper renewable power, while during the remaining hours it enters the market, displacing combined-cycle plants and reducing electricity prices.”

In addition to this, PwC concludes by stressing that “the less nuclear energy enters the daily market, the more technical constraints the system requires,” since “nuclear provides voltage control and inertia, which makes the system more stable. Without it, the system operator must schedule more combined-cycle plants, leading to higher costs and greater emissions.”