Energy Security

Coal is easily the cheapest option for energy. However, coal-based power produces massive greenhouse gases, and for this reason it may not be a good option in future decades. Moreover, coal is going to be exhausted, eventually.

Alternatively, it is possible that breakthroughs in solar technologies could make energy-generation cheaper and economically more viable. Solar energy is also available everywhere and is renewable. Moreover, it has none of the toxic. Recent advances in solar thermal technology show a lot of promise. Yet, nobody knows whether the technology is scalable, can work in cloudy countries, or can overcome maintenance issues.

As it seems, the most promising alternative source of energy is nuclear power, although nobody knows for sure, since the future is full of uncertainties.

Opponents of nuclear power for energy say that nuclear power will never account for more than a fraction of power needs, and will be the most expensive form of power.

The economic viability of nuclear power is far from proven. A detailed MIT analysis in 2003 suggested that nuclear power was distinctly more expensive than power based on coal or natural gases.

Since then, the prices of fossil fuels have sharply increased. And, meanwhile, the nuclear power industry argues that economies of scale can substantially reduce the cost of nuclear power. Nuclear power plants have high upfront costs, but have low running costs. If they are built without cost or time overruns, nuclear power could be competitive with natural gases even at today’s prices.

For example, France, which gets three-quarters of its electricity from nuclear power, has shown that once production is standardized and plants are built on time, nuclear power is competitive.

Fourth generation nuclear power plants are now on the drawing board, and could further improve the economics of nuclear power.

We need to keep all the options open, aim for a mix of energy sources, and try to be at the leading edge of all technologies, so as to hedge the future.