nuclear-news

Nuclear power- a very risky investment

What Thomas (Steve Thomas, Professor of Energy Studies at the University of Greenwich,)  describes paints a very risky picture for nuclear investment.

The State of the Nuclear Industry in Canada and Abroad – Pt 1. Enviralment by: Aizen | March 2, 2010“…while the decision on whether to order new nuclear plants will be taken on a range of considerations, it is important idea of economics behind nuclear power so it can be properly gauged against other options….

. The one plant of modern design that has significant construction experience, Olkiluoto in Finland, was reportedly about 75% over-budget in summer 2009. The plant is nearly 4 years from completion on current estimates so there is significant scope for further cost escalation.

…Building a nuclear plant with high cost overruns and delayed completion dates is an attachment to the nuclear option that in most projects today has become self-evident…

..What Thomas (Steve Thomas, Professor of Energy Studies at the University of Greenwich,)  describes paints a very risky picture for nuclear investment. The news that there is now significant risk that the owner of the Olkiluoto plant will default on their loan doesn’t help boost confidence in future investors….

…..Conclusions on economics Many cost estimates for nuclear electricity are based on unrealistic assumptions on construction cost and on a cost of borrowing that does not reflect the economic riskiness of nuclear investments. In many cases, the assumed construction cost and the cost of capital are a half or less of more realistic values. More rational assumptions could easily triple the generation cost these estimates would produce.

The State of the Nuclear Industry in Canada and Abroad – Pt 1. « Enviralment

March 3, 2010 - Posted by Christina Macpherson | 2 WORLD, business and costs