Global Nuclear Plant Life Extension Market to Plummet by 2025 as Europe Shifts Toward Renewables
The total capacity of Nuclear Power Plants (NPP) starting Plant Life Extension (PLEX) programs globally will decrease more than six-fold over the next decade, from an estimated 18.1 Gigawatts (GW) in 2015 to 2.9 GW by 2025, says research and consulting firm GlobalData.
The company’s latest report states that several plant operators started PLEX for one or more of their reactors in 2010 and 2011, with 26 and 24 new programs implemented each year, respectively.
However, these figures are expected to decline over the coming years, due to anti-nuclear public opinion following the 2011 Fukushima disaster. As a result, a number of key nuclear countries, such as Germany, Belgium and Switzerland, will decommission and disinvest in this power source and use alternatives to replace the equivalent capacity, with a preference for renewables.
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Consequently, Harshavardhan Reddy Nagatham, GlobalData’s Senior Analyst covering Power, states that the global PLEX market value will also witness an overall decrease from approximately $7.5 billion in 2015 to $2.6 billion by 2025, although it will rise initially to $8.6 billion by the end of 2016.
"Demand for power is continuing to rise globally, especially in developing countries such as China and India, which have subsequently formulated extensive nuclear development plans to help fulfill the need," Nagatham says. "The key advantage of nuclear power is its ability to produce large amounts of electricity suitable for serving the base load of a grid. It is therefore attractive to various emerging countries as a viable power generation option, which will in turn help drive their PLEX markets."
However, Nagatham says that the overall trend toward renewable energy for cutting emissions means the global PLEX market outlook will remain negative to 2025.
"This will be most notable in Europe, where the capacity of NPPs starting PLEX operations is expected to drop almost seven-fold from approximately 8.3 GW this year to 1.2 GW by the end of 2025," Nagatham says.
For more on the report, "Plant Life Extension (PLEX) for Nuclear Power, Update 2015 – Global Market Size, Competitive Landscape and Key Country Analysis to 2025,” click here.
