Recent study shows markets must properly credit nuclear, NEI says

A recent report by New England’s independent service operator (ISO-NE) reflects why electricity markets must value the attributes of nuclear energy, the Nuclear Energy Institute (NEI) said in a recent press release.

The ISO’s draft 2016 Economic Study: NEPOOL Scenario Analysis found that the market needs additional income to remain stable as more renewable resources are added.

“America’s future grid resiliency is at risk because current electricity markets do not properly credit nuclear for all of the benefits it delivers to the grid, which has already led some nuclear power plants to close,” NEI Senior Director of Policy Development Matt Crozat said.

In recent years, six U.S. nuclear power reactors have shut down prematurely and eight others have
announced planned closure.

The report found that natural gas, as well as renewables resources, have shown significant revenue shortfalls. ISO-NE’s capacity auction prices are meant to prevent these shortfalls but have not met expectations. The auctions fell this year to the lowest levels on record.

“This latest study shows that electricity markets must do a better job rewarding diversity of generation, resilience and environmental protection–or we will lose these valuable attributes,” Crozat said. “We must not let distorted markets determine the energy mix we’ll have to live with for decades.”