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Nuclear Power’s biggest problem – it’s not cost competitive

Nuclear Power’s Cost Competitiveness Remains a Critical Question
solveclimate by Laura Shin – Sep 18th, 2009
Nuclear power has long been controversial for its radioactive waste, history of dangerous meltdowns and potential to help spread nuclear weapons.

With those arguments against it, and with a spotty record of construction and management in the 1970s and 1980s, the United States hasn’t welcomed a new nuclear power plant since 1996 – and that one had been in the works since 1973

….. new study tallying the cost of nuclear power suggests that nuclear’s many uncertainties could push it out of the realm of being cost-competitive.

The study looked at the break-even investment required for nuclear to be cost-competitive with other energy alternatives. Unlike other forms of power generation whose major expense is fuel, nuclear power requires a large upfront investment for construction; it comprises 70% of the total costs for nuclear electricity, with 20% going towards operation and maintenance and 10% to fuel.

The uncertainties related to construction mean nuclear energy can easily exceed projected costs, in some cases by as much as 300 percent, writes the study’s author, Pedro Linares of Instituto de Investigacion Tecnologica in Madrid.

For example, Areva’s construction costs for Finland’s new Olkiluoto 3 reactor (right), currently three years behind schedule, jumped from an original estimate of 3 billion euros to 5.3 billion euros this year, and the company says the cost could rise further due to delays caused by faulty materials and planning problems.

According to the scenarios and assumptions of the study, going as little as 10% over budget would make nuclear noncompetitive.

Nuclear Power’s Cost Competitiveness Remains a Critical Question | SolveClimate.com

September 19, 2009 - Posted by Christina Macpherson | 1, 2 WORLD, business and costs | antinuclear, AREVA, nuclear, nuclear costs, radioactive