nuclear-news

Britain setting up huge subsidies for nuclear industry, poorly hidden in consumers’ costs

Britain’s proposals appear to be drafted to sidestep E.U. restrictions on state aid that might prevent direct subsidies for the construction of new nuclear power plants.

Britain hopes that this guaranteed price, to be paid by businesses and consumers, will secure the financial commitment from energy utilities to construct nuclear reactors

This proposal has distorted policy in order to try to disguise the massive subsidies nuclear will need, but they remain so huge that the policy will fail anyway,” 

Britain Charts Way to Wider Nuclear Investment, NYT, By STEPHEN CASTLE, May 22, 2012 LONDON — Britain  announced plans Tuesday to finance a new generation of nuclear power plants and renewable energy facilities in a move that illustrates divergent energy policies within the European Union  as it grapples with the challenge of reconciling economic and environmental objectives. While Germany intends to phase out nuclear power and France’s new president, François Hollande, aims to reduce his country’s reliance on it, the British government appears to be moving in the opposite direction with its proposals, aimed at luring investment of £110 billion, or $175 billion, to build new reactors and renewable energy plants.

The 27-member European Union sets climate change  targets and
co-ordinates efforts to reduce energy dependency, but decisions on
energy sources remain with national governments.
Britain’s proposals appear to be drafted to sidestep E.U. restrictions on state aid that might prevent direct subsidies for the construction of new nuclear power plants. Instead the plans, announced in draft
legislation by the Department of Energy and Climate Change, would
guarantee prices for low-carbon electricity and pay producers for
backup supplies when renewable sources like wind power fail to meet
demand.

Britain hopes that this guaranteed price, to be paid by businesses and consumers, will secure the financial commitment from energy utilities to construct nuclear reactors and clean-power projects needed to meet
European targets and reduce Britain’s reliance on natural gas plants.

Recent developments suggest that could be a tough battle. In March,
Britain’s nuclear program suffered a serious setback when two German
companies, RWE and E.On, announced that they would not proceed with a
£15 billion joint venture in Gloucester. The energy giants balked at
the huge capital costs involved, blaming the economic crisis and
arguing that the German government’s plan to phase out nuclear power
had put additional pressure on their balance sheets.

According to British news reports, Centrica has threatened to pull out
of a project to build a new nuclear power plant at Hinkley Point in
Somerset in a joint venture with EDF Energy, the British subsidiary of
the French giant EDF…….
The proposals have intensified debate over the cost and safety of
nuclear power after the Fukushima disaster in Japan and the decisions
by Germany and by Switzerland, which is not in the European Union, to
phase out nuclear reactors.

During the recent presidential election campaign, Mr. Hollande
suggested reducing France’s dependence on nuclear power from around 75
percent to around 50 percent and shutting 24 of France’s 58 reactors
by 2025.

Critics attacked Britain’s determination to renew its nuclear
capacity. “This proposal has distorted policy in order to try to disguise the massive subsidies nuclear will need, but they remain so huge that the policy will fail anyway,” said Tom Burke, a former
environmental campaigner and visiting professor at Imperial and
University Colleges, London,

Industry reaction was far from euphoric. In a statement, Volker
Beckers, chief executive of RWE Npower, said the investment required
would add up to around £8,000 for every household in Britain……
http://www.nytimes.com/2012/05/23/world/europe/britain-charts-way-to-wider-nuclear-investment.html

May 23, 2012 - Posted by Christina Macpherson | politics, UK