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Loan guarantees to nuclear power not scrutinised like solar loans

why do we continue to nurture nuclear power so much more generously than safer and less costly sources of electricity?

The Nurture of Nuclear Power, NYT, By NANCY FOLBRE , 27 March 12,  Free enterprise? States’ rights? Public opinion? These concepts seem to bounce off the nuclear power industry like a pebble tossed at a reactor containment vessel.

Remember the brouhaha about $563 million in Obama administration loan guarantees to Solyndra , the solar panel manufacturer that went belly up last fall? Neither President Obama nor Republicans in Congress have voiced opposition to an expected $8.3 billion Energy Department guarantee  to help the Southern Company, a utility giant, build nuclear reactors in Georgia.

Pressed to respond to the comparison, Representative Cliff Stearns, Republican of Florida and chairman of the Energy and Commerce subcommittee on oversight and investigations, explained that the loan guarantee for nuclear power plant construction was for a “proven industry that has been successful and has established a record.”   The nuclear power industry has certainly established a record – for terrifying accidents. ……

the industry has proved remarkably successful at garnering public support in the United States, ranging from public insurance against accident liability to loan guarantees. An article  last year in The Wall Street Journal observed that subsidies per kilowatt hour during its initial stages of development far exceeded those provided to solar and wind energy technologies.

According to a detailed report  published by the Union of Concerned Scientists , subsidies to the nuclear fuel cycle have often exceeded the value of the power produced. Buying power on the open market and giving it away for free would have been less costly.

Heightened concerns about safety have driven recent cost estimates even higher, scaring off most private investors. Travis Hoium, an analyst who has written extensively about the industry on the investment Web site The Motley Fool , calls nuclear power a dying business . In an article, “Warren Buffett Wants a Subsidy From You,” he clearly explains . In an article, “Warren Buffett Wants a Subsidy From You,” he clearly explains  recent efforts to shift risk from investors to ratepayers by allowing utilities to charge for construction in advance.

Investor interest in nuclear-generated electricity has declined partly as a result of the boom in shale gas extraction . But energy sources that don’t increase carbon emissions are also playing a major role, with wind, hydropower and other renewables projected to provide about 30 percent of expected additions to power generation capacity in the United States between 2010 and 2035……
According to a recent Pew Research Center poll , 44 percent of Americans favor promotion of nuclear power while 69 percent favor increasing federal funding for research on wind, solar and hydrogen energy technology.

So why do we continue to nurture nuclear power so much more generously than safer and less costly sources of electricity?…    http://economix.blogs.nytimes.com/2012/03/26/the-nurture-of-nuclear-power/

March 28, 2012 - Posted by Christina Macpherson | business and costs, USA