Climate change increases credit risks for nuclear power plant projects

Moody’s Investor Service warns that nuclear power plant projects could be riskier due to climate changes. Nuclear power plants are demanding especially for water consumption. Yet in tens of years, water source may not appear on same places as they are now.

nuclear plant

Moody’s evaluated nuclear power plant operators in the United States, yet its outcomes may apply on other countries, too. According to Moody’s Investor Service, credit risks of projects in the United States will rise over the next 10 to 20 years. Climate change will affect efficiency of nuclear plant operations, but also maintenance, safety systems or nuclear waste disposal.

Efficiency depends mainly on water supply, a key resource for any nuclear power plant. Water serves for cooling down, a source for steam conversion to drive turbines, and that leads to electricity generation. Moody´s reported that climate change will lower water availability, and nuclear power operators will have to take adequate measures to lower or eliminate risks. Yet, that will require capital investment.


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