COMMENTARY — The future of nuclear power

Saskatoon, Sask.-based Cameco is a uranium company, and as such its prospects are tied to the future of nuclear power. About 17% of the world’s electrical needs are met by nuclear reactors.

Forecasts indicate that world electrical demand will increase 1-2% annually throughout the next decade, with nuclear technology projected to retain its share of the market. This is good news for a uranium producer such as Cameco. While all forms of energy supply are useful, nuclear technology — during its 30-year operating history — has demonstrated clear advantages in terms of safety, reliability and environmental protection

In countries such as France and Japan, the nuclear program has become synonymous with operating efficiency and clean air. On a cost basis, the technology has proved competitive with other forms of baseload electricity generation.

In Japan, which lacks domestic energy supplies, the electrical power industry is especially sensitive to costs and operating efficiency.

With nine reactors having recently been approved (adding to the 45 existing units), the country continues to expand its commitment to nuclear energy. This is partly a reflection of the operating efficiency and reliability of its reactors.

When comparing the installed nuclear capacity at two of Japan’s large utility companies with the actual nuclear electricity that they generated last year, the difference is substantial.

At the beginning of the year, these utilities were expected to generate 21-28% of their electricity through nuclear power. Instead, they were called upon to generate 37-41%, demonstrating that nuclear power can be counted on when it is needed.

This type of exceptional performance has resulted in an increasing reliance on nuclear power as a low-cost, efficient, baseload source of electricity. While we are convinced there are long-term growth opportunities for nuclear power in countries with large and established programs, we are also encouraged by the more immediate opportunities presented by reactor programs in countries such as Argentina, Romania, Thailand and Mexico. In 1993, Cameco concluded its first contract with the Mexican utility, a contract that includes an option for increased, longer-term business. — From a speech given by Cameco President Bernard Michel at the company’s annual meeting. Cameco is a major world supplier of uranium.