{"id":83755,"date":"2024-01-03T14:47:20","date_gmt":"2024-01-03T19:47:20","guid":{"rendered":"https:\/\/www.riacanada.ca\/?p=83755"},"modified":"2024-04-01T12:01:33","modified_gmt":"2024-04-01T16:01:33","slug":"nuclear-powers-role-in-reaching-net-zero-and-the-investment-opportunities-it-brings","status":"publish","type":"post","link":"https:\/\/www.riacanada.ca\/wordpress\/magazine\/nuclear-powers-role-in-reaching-net-zero-and-the-investment-opportunities-it-brings\/","title":{"rendered":"Nuclear Power\u2019s Role in Reaching Net Zero and the Investment Opportunities it Brings"},"content":{"rendered":"\n

Nuclear power has been a somewhat neglected energy source for some years now. It provides only around 10% of the world\u2019s electricity (and around 15% of Canada\u2019s), and currently comes far behind oil and natural gas in terms of overall global energy supply. <\/p>\n\n\n\n

However, there are big changes coming in how the world will consume energy. To mitigate the impacts of global warming, most countries have made significant commitments to move away from fossil-fuel use and replace it with net-zero energy. To achieve this within the fairly short timeframes required (2050 for many countries), nuclear power is likely to become a much bigger player in the electricity-generating field.<\/p>\n\n\n\n

Let\u2019s take a look at the scope of change as the world moves from fossil fuels to net-zero energy sources; nuclear power\u2019s probable role; and the investment opportunities that it brings.<\/p>\n\n\n\n

Net-zero targets and the move away from fossil fuels<\/h2>\n\n\n\n

Extreme weather, exacerbated by global warming, has had devastating impacts on the planet, causing billions of dollars\u2019 worth of damage along the way. In a bid to minimize these impacts, most of the world\u2019s countries have agreed to cut human-made greenhouse gas emissions to restrict global warming to no more than 1.5 degrees Celsius above pre-industrial levels. The world is currently around 1.1 degrees Celsius warmer<\/a> than it was in the late 1800s.<\/p>\n\n\n\n

According to the Paris Agreement<\/a> (a legally binding international treaty on climate change), greenhouse gas emissions need to be reduced by 45% by 2030 and reach net zero by 2050. To achieve this, we\u2019ll need to make a huge shift regarding the type of energy we use in every aspect of our lives: for light, heat, cooling, transportation and industry. The world will gradually have less dependency on fossil fuel energy \u2014 such as coal, gas and oil \u2014 and replace it with renewable energy sources.<\/p>\n\n\n\n

This will be a mammoth task, and while it won\u2019t happen overnight, it does need to happen in just a few decades, which will bring with it considerable challenges.<\/p>\n\n\n\n

Nuclear power\u2019s role in reaching net-zero targets<\/h2>\n\n\n\n

Currently, with almost 85%<\/a> of global energy consumption coming from fossil fuels, we clearly have a long way to go to greatly reduce that consumption and diversify the energy grid.<\/p>\n\n\n\n

The good news is that the journey has already begun, and renewable energy sources, such as hydro-electric, solar and wind power are not only growing at a fast pace, they\u2019re also less expensive to set up when compared to new gas or coal generating plants.  <\/p>\n\n\n\n

Much of current fossil fuel energy will have to be replaced by electricity in one form or another (either directly from the power grid or in batteries). One of the key issues of renewable energy is storage. The technology to store excess energy from wind and solar farms when the sun is shining and the wind is blowing, is currently insufficient. When it\u2019s dark and still outside, we\u2019ll need an energy source that can continue to feed our power needs. While hydroelectric power (using the power of moving water to generate electricity) is highly efficient at providing energy at the push of a button, wind and solar are not.<\/p>\n\n\n\n

This is where nuclear power comes in. While it\u2019s not renewable energy as such (uranium, the source of nuclear power, is a finite resource), it does create energy with zero greenhouse gas emissions. And it can deliver energy around the clock, regardless of the weather or time of day.<\/p>\n\n\n\n

There is substantial potential for increased growth of nuclear energy over the short term, to help replace the huge amounts of fossil fuel energy we currently consume. It can be a quick and fairly cost-efficient option to extend the life of nuclear reactors so they can continue to generate power. Also, the development of small modular reactors (SMRs) could provide a more affordable option that is much faster to build than large reactors.<\/p>\n\n\n\n

In recent years, there seems to have been concerted political will for nuclear power to play a key role in the transition to net-zero emissions. In 2020, then Minister of Natural Resources, Seamus O\u2019Regan said<\/a>, \u201cWe have not seen a model where we can get to net-zero emissions by 2050 without nuclear.\u201d Nuclear currently accounts for 15%<\/a> of Canada\u2019s electrical production capacity.<\/em><\/p>\n\n\n\n

The challenges facing nuclear power<\/h2>\n\n\n\n

Nuclear power has some hurdles to overcome when it comes to being a key player in the move away from fossil fuels. Some of these issues are contentious, but they\u2019re all worth mentioning, and include:<\/p>\n\n\n\n