Diablo Canyon Power Plant: An Examination of its Role and Future

Neel Roy
May 16, 2024

Submitted as coursework for PH241, Stanford University, Winter 2024

Introduction

Fig. 1: The Diablo Canyon Power Plant pictured from above. (Source: Wikimedia Commons)

The Diablo Canyon Power Plant (see Fig. 1), located near Avila Beach in San Luis Obispo County, California, is the state's only operational nuclear power plant. Since the permanent shutdown of the San Onofre Nuclear Generating Station in 2013, Diablo Canyon has been the largest single power station in California.

Contribution to California's Electricity

The Diablo Canyon Power Plant's twin reactors, each with a capacity of 1100 MWe, generate almost 10% of California's in-state electricity generation. [1,2] This significant contribution supplies the electrical needs of more than 3 million people.

Impact of Shutdown on Energy Stability

The shutdown of Diablo Canyon has significant implications for energy stability in California. In 2023, the California Energy Commissioned determined that Diablo Canyon was important to ensure continued energy stability in the state, due to the risk that sufficient electricity infrastructure would not be built in time to replace it. Shutting it down would create significant challenge to ensure the reliability of the grid without resorting to more fossil fuel usage, which could also jeopardise California's greenhouse gas reduction targets. [3]

Economic Impact of Shutdown

Diablo Canyon has been shown to have a significant economic impact, both on its immediate region in California and as the United States a whole. A study into the economic benefits of Diablo Canyon showed that the plant injected a total of $1.1 Billion into the California economy every year. [4] A shutdown of this plant is bound to have effects on the region's economy. A report by the Diablo Canyon Decommissioning Engagement Panel studied the economic impact of Diablo Canyon's shutdown in detail. One of their key findings was that the shutdown of the plant would result in a reduction $77 million per year of regional GDP for a decade, which amounted to a 0.6% reduction. Also, about 1500 workers were employed at the time at Diablo Canyon, and this shutdown would adversely affect their employment. In order to account for this, the report recommended some adjustments in the local economy, to ensure a potential shutdown created as many opportunities as it affected. [2]

Conclusion

The Diablo Canyon Power Plant plays a crucial role in California's energy infrastructure, contributing a significant portion of the state's electricity supply. However, the costs and potential risks associated with its operation and eventual shutdown present complex challenges. As California continues its transition towards renewable energy sources, the role and future of Diablo Canyon has remained a key issue in the state's energy policy. In December 2023, California energy regulators voted to allow the Diablo Canyon nuclear plant to operate till 2030, adding five years to its lifespan. Despite calls from environmental groups to shut it down, this decision will have great implications for power stability, costs and sustainability in California.

© Neel Roy. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

Refereces

[1] "State Nuclear Profiles 2010," U.S Energy Information Administration, April 2012, p. 7.

[2] "A Strategic Vision," Diablo Canyon Decommissioning Engagement Panel, April 2023.

[3] "Diablo Canyon Power Plant Extension," California Energy Commission, CEC-200-2023-004, March 2003.

[4] P. Mayeda and K. Riener, "Economic Benefits of Diablo Canyon Power Plant," Pacific Gas and Electric Company, June 2013.