The Opportunity Cost of Shutting Down Diablo Canyon Nuclear Power Plant

For nearly 35 years, Diablo Canyon Power Plant has pumped just over 2.0 gigawatts of electricity onto California’s power grid. Unlike hydroelectric power, which has good years and bad depending on rainfall, or solar and wind power which depends on sunshine and wind, Diablo Canyon’s nuclear reactors generate this electricity 24 hours per day, 365 days a year.

But Diablo Canyon’s days are numbered. In January 2018 California’s Public Utility Commission voted to shut it down. Barring legislation to countermand this decision, by 2025 Diablo Canyon will cease operations, making California a nuclear free state. Is this a good idea?

Anti-nuclear environmental groups, as reported at the time in the Los Angeles Times, “hailed the decision, which was expected after 17 months of filings and debate, but also were concerned about what type of energy sources would be used to replace Diablo‚Äôs electricity.”

Good question. Especially since environmental groups are the groups one might expect to be most concerned about “greenhouse gas,” and the only way wind and solar power can operate is by having natural gas power plants to spin into action every time the wind falters or the sun goes down.

The alternative to natural gas backup is to overbuild wind and solar farms and store the excess energy with batteries. An interesting comparison would be to see what battery storage capacity would be required to replace the power Diablo generates during off peak hours of 12 hours per day.

The following chart projects a $12 billion […] Read More