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The unknown present and future costs of nuclear power

the total costs of nuclear power are, in any meaningful sense, incalculable. Investors face cost overruns that could burn through even the deepest pockets. The true cost of waste disposal still is not known. The cost of decommissioning, even decades away, is also a big unknown. And the cost of catastrophic failure is more than a company as large as GE is willing to face. How can any investor calculate the return on investment with such large uncertainties?……

The incalculable cost of nuclear power, guardian.co.uk,  Thomas Noyes , 3 April 11 Despite the Fukushima catastrophe, nuclear energy has green advocates. Low carbon it may be, but are they pricing it right? “……the costs and uncertainties of the industry cast serious doubt on the prospects for a nuclear renaissance…..

If the costs and benefits of nuclear power are so attractive, where are the investors? At least with wind and solar power, it is possible to see the cost curve dropping to the break-even point in the near future. Nuclear power, by contrast, may never be able to convince investors to put their money down without government guarantees.

The prospect of cost overruns, waste disposal and extended shutdowns are daunting enough. But mostly, it is the potential cost of catastrophic failure that scares away investors. Large-scale disasters, however rare, are colossally expensive, as well as dangerous. The first estimate of entombing the Fukushima plant is $12bn. And this doesn’t include the other liabilities that could force the Japanese government to nationalise the Tokyo Electric Power Company (Tepco)…….The total costs of coal may be high, but the total costs of nuclear power are, in any meaningful sense, incalculable. Investors face cost overruns that could burn through even the deepest pockets. The true cost of waste disposal still is not known. The cost of decommissioning, even decades away, is also a big unknown. And the cost of catastrophic failure is more than a company as large as GE is willing to face. How can any investor calculate the return on investment with such large uncertainties?……

Looking at the bigger picture, I don’t see why I or anyone should apologise for advocating developing energy resources that don’t blow up and take their investors with them. The renewable energy advocates I work with are willing, and even eager, to discuss the full costs and benefits of all sources of energy. Supporters of nuclear power should be willing to hold themselves to the same standard…..The incalculable cost of nuclear power | Thomas Noyes | Comment is free | guardian.co.uk

April 4, 2011 - Posted by Christina Macpherson | general