What factors affect uranium demand?
Demand for uranium is directly linked to the level of electricity generated by nuclear power plants. Reactor capacity is growing slowly, and at the same time the reactors are being run more productively, with higher capacity factors, and reactor power levels. An external factor expected to have a particularly important impact on the prospects for nuclear power, is the trend towards the liberalization of electricity markets in many countries. Historically, electric power utilities in the western world have operated in regulated electricity markets. Typically, a government regulator allowed each utility to serve a captive market area and earn a prescribed rate of return on its assets. The focus was on delivering a reliable supply of electricity. Since the mid 1990s, however, there has been a transition toward market liberalization. This trend began in the US and has been adopted to varying degrees in Europe and the Far East. Generally, deregulation in the electrical generation industry h
