Analysis and Planning Framework for Nuclear Plant Transformation

Abstract

Commercial nuclear power in the United States has been an unqualified success by any measure, providing low cost, carbon-free, and safe baseload electricity for decades. The industry today is at the peak of its historical performance in terms of generation output, reliable operations, and demonstrated nuclear safety. However, it is no longer among the lowest-cost electric generation sources with the emergence of subsidized renewables and shale gas generation. The business model that has served the operating nuclear fleet so well over its life is now a drag on cost performance due to its reliance on a large highly skilled labor force. In contrast, digital technology and innovation are enabling dramatic efficiencies in energy production, resulting in fierce competition for a commodity such as electricity. The nuclear power industry has responded to this challenge with many initiatives to improve efficiency and modernize plant equipment, especially where reliability and obsolescence issues are pressing. However, it would be a missed opportunity to merely modernize the plant components and the work processes of an outdated business model that was formulated to manage the technology of the 1960s. Rather, the greater opportunity is to transform that business model to one that fully exploits the capabilities of modern digital technology, resulting in substantially lower production costs and sustainable market viability. One successful example of such transformation is the concept of Integrated Operations, which was introduced into the North Sea oil and gas industry a couple of decades ago when the profitability of operating these fields was severely threatened by low world petroleum prices and the high overhead of operating the offshore oil and gas platforms. This effort resulted in significant changes to how these oil fields were operated and allowed the industry to continue profitable operation of these platforms. This example has some remarkable parallels to the U.S. commercial nuclear industry as described in the next section. This report provides an analysis and planning framework for such a nuclear plant operating model transformation based on the transferable learnings from the North Sea transformation. This framework is termed Integrated Operations for Nuclear or ION. This report describes the key principles and methods of Integrated Operations and how they are being applied in a collaboration between the DOE Light Water Reactor Sustainability Program and Xcel Energy in an initiative to transform its operating model for performance improvement and long-term sustainability. It describes a method to bring the operating costs of a nuclear fleet in line with market-based pricing, transforming work functions to reduce cost with technology innovations. This initiative will continue over the next several years in the detailed development of transformative concepts for nuclear plants, which will be published as follow-up to this initial report on Integrated Operations for Nuclear.