Gone Fissioning—The Potential of Fusion Energy in the Power Sector Won’t be Felt for Decades

The recent announcement of a breakthrough in nuclear fusion that researchers had been pursuing for decades was just proof-of-concept evidence that a fusion reaction could produce more energy than it consumes. DBRS Morningstar sees this development as simply one more step in the long road before the potential of clean fusion energy can be practically harnessed to help the world combat global warming. Near-term challenges to fusion power development including significantly increasing the energy gain from the fusion reaction to make up for energy lost through the process of power generation as well as sustaining the fusion driven reaction for a long enough period in order to produce a reliable source of energy to run generating equipment.

Given that it will take at least three decades before a commercially viable nuclear fusion plant becomes operational, it will be a long time before fusion power has an impact on the power industry. DBRS Morningstar believes that fusion power won’t arrive in time to help the world in its low-carbon energy transition. Even then, other renewable sources of power with storage capability will still be needed to serve intermediate load or peaking load producers.

The business case for new nuclear fission plants or the refurbishment of existing plants for life extensions may weaken over time as fusion power moves into the realm of reality. That said, DBRS Morningstar recognizes that conventional nuclear fission power facilities will be with us for decades to come.