nuclear-news

The News That Matters about the Nuclear Industry Fukushima Chernobyl Mayak Three Mile Island Atomic Testing Radiation Isotope

Nuclear “renaissance” looking riskier than ever, with cancellation of Maryland plant

There’s no gainsaying that nuclear construction projects are looking riskier all the time, especially in the United States, where many factors have conspired to spoil dreams of a big nuclear renaissance: declining energy demand since the onset of the global economic crisis (down 4 percent since 2007 in the States); plummeting natural gas prices (down almost half from what they were a few years ago); collapsing prospects for enactment of a U.S. climate bill (which would have raised the costs of fossil-fuel-generated electricity); and soaring reactor construction costs (with EDF’s current reactor 40 or 50 percent more expensive than originally billed).

Cancellation of Maryland Plant Delivers Double Whammy IEEE Spectrum:  Bill Sweet , October 13, 2010 Constellation Energy’s decision this last week to not build a nuclear reactor after all in Maryland was a big shock to its partner EDF, which had been banking on the alliance to serve as its wedge into the U.S. reactor market, and to the market itself.

Constellation’s reason for pulling out was the high fee the Energy Department proposed to charge for extending a Federal loan guarantee to cover the project, estimated at $10 billion. DOE and nuclear regulators had come under fire from influential nuclear critics like former NRC commissioner Peter Bradford for extending loan guarantees on excessively soft terms, at growing risk to U.S. taxpayers.

There’s no gainsaying that nuclear construction projects are looking riskier all the time, especially in the United States, where many factors have conspired to spoil dreams of a big nuclear renaissance: declining energy demand since the onset of the global economic crisis (down 4 percent since 2007 in the States); plummeting natural gas prices (down almost half from what they were a few years ago); collapsing prospects for enactment of a U.S. climate bill (which would have raised the costs of fossil-fuel-generated electricity); and soaring reactor construction costs (with EDF’s current reactor 40 or 50 percent more expensive than originally billed).

An analysis in the Financial Times deems Constellation’s decision “strategically devastating” for EDF–but also potentially helpful in the long run, because France’s national utility already was widely believed to have been putting too much money on its losing U.S. bet.

IEEE Spectrum: Cancellation of Maryland Plant Delivers Double Whammy

October 14, 2010 - Posted by | business and costs, USA | , , , , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: