LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global nuclear decommissioning market to grow at a CAGR of over 36% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global nuclear decommissioning market for 2016-2020. The report takes into account only the countries that have planned nuclear decommissioning during the forecast period. Other countries that have nuclear power reactors, but are not decommissioning during the forecast period, have not been considered.
Technavio energy analysts highlight the following three factors that are contributing to the growth of the global nuclear decommissioning market:
- Stringent regulations post-Fukushima accident
- Public and government support for decommissioning of nuclear reactors
- Increase in use of renewable energy
Stringent regulations post-Fukushima accident
Due to the sensitive nature of nuclear energy, governments and utilities have always been vigilant regarding the safety of nuclear operations. However, the Fukushima incident was more of a natural calamity related accident than a man-made one. The tsunami that ensued after the severe earthquake destabilized the core of the reactor, resulting in the leak of nuclear material into the atmosphere. The accident revealed the danger and vulnerability of nuclear power to natural as well as man-made calamities.
Governments across the world reviewed their nuclear power generation related regulations to ensure the safety of the reactor. In some countries such as Japan and Germany, the period between regular checks of the reactors was decreased so as to take timely action. The countries came up with updated regulations to enforce better safety standards on the reactors.
Almost all countries have checked their nuclear fleet post-2011 and upgraded the reactors based on new sets of rules. According to Sayani Roy, a lead analyst at Technavio for power research, “The stringent regulations have resulted in the closing down of low-performance nuclear reactors and is expected to drive the nuclear decommissioning market in the next ten years.”
Public and government support for decommissioning of nuclear reactors
Fatal nuclear accidents of the past have put a huge question mark over the safety of nuclear power reactors. In 2011, Japan's Fukushima accident severely damaged the interest in nuclear power worldwide. This incident took place 25 years after the Ukraine Chernobyl disaster.
Nuclear energy had regained importance because of an increased demand for power in the emerging markets and developing countries and the need to reduce the use of fossil fuels to tackle the climate changes. Following the Fukushima disaster, stringent safety regulations and emergency measures have been put in place by governments worldwide. Increased public opposition has pressurized countries to revisit their nuclear power development plans.
Many countries halted their nuclear project plans, while some plan to phase out nuclear power. Germany and Switzerland have announced the shutdown of all their nuclear reactors by 2022 and 2035, respectively. Japan and Germany were the first two countries to impose a moratorium on its nuclear reactors. In France, a nuclear cap of 65 GWe has been imposed. Canada has decided to decommission its costlier reactors. This will increase the number of nuclear reactor shutdowns globally, driving the growth of the global nuclear decommissioning market.
Increase in use of renewable energy
The Fukushima disaster has revoked nuclear development plans in many countries. Nations worldwide are preferring renewable power technologies such as the wind and solar.
Growing subsidies and incentives, as well as efficiency in technology, have reduced the cost per kilowatt for these technologies.
Post the twenty-first session of the Conference of the Parties (COP) in 2015, all the participating countries decided to decrease carbon emissions. Germany is banking on its renewable energy resources to meet its lost nuclear capacity. France, which relies more than 76% on nuclear, is now turning toward renewable capacity and aims to grow its renewable capacity to 40% by 2030.
Despite being proficient in nuclear technology, Brazil is looking towards harnessing its wind capacity to meet its energy requirements. India and China are strongly promoting the use of renewables especially the wind and solar to lower its dependence on fossil fuels. “The increased focus on renewables along with governments across multiple countries resolving not to increase nuclear power, will be favorable for the nuclear decommissioning market in the short to mid-term future,” says Sayani.
Browse Related Reports:
- Global Nuclear Reactor Construction Market 2015-2019
- Global Nuclear Power Market 2015-2019
- Global Surveillance Market for Hazard Protection 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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