Quantitative Analysis of Economic Value of Nuclear Power Generation Under High Penetration of Renewable Energy

In this study, we perform model analyses assuming the Japanese power supply portfolio in 2050 to evaluate the economic efficiency of nuclear power generation under mass introduction of variable renewable energy (VRE) ― such as solar PV and wind ― and of hydrogen power generation in 2050. As a result, this study shows that even if the unit cost of VRE falls significantly by 2050, not only existing nuclear power plants, but also new construction, will have economic efficiency. Its benefit would become much larger when 100% carbon-free generation is mandated, but in that case, the role of nuclear energy as the base load power generation would be changed. On the other hand, in the case where hydrogen power generation will be deployed, the nuclear energy would be smaller than those in other 100% carbon-free cases, but its base load operation would be maintained.