nuclear-news

Running nuclear power plant – 45 times more costly than coal, and gas is even cheaper

while fuel costs [for nuclear power] are low, maintenance costs for enhanced
safeguards are rising.

UBS UBSN.VX -0.98% analyst Julien Dumoulin-Smith estimates fixed costs
per kilowatt of capacity at a nuclear plant are perhaps five times
those for a comparably sized coal plant.

Smaller nuclear plants, with less output over which to spread fixed
costs, suffer most.

Gas Suffocates Nuclear Power
http://online.wsj.com/article/SB10001424127887323854904578263952157252768.html
 Natural gas is poison for coal. But its toxicity also extends to
nuclear power. 25 Jan 13,  Low gas prices have made it cheaper to run
gas-fired power plants more often and, because these plants often set
the wholesale electricity price, reduced power prices overall. Add on
tightening emissions standards, and coal plants have suffered, with
many expected to close.

But nuclear power stations haven’t escaped. Cheap electricity due to
weak gas prices hurts their profits, too. Against that, uranium is
cheap, so running costs are low. And with zero carbon emissions,
there’s no need to worry about any future greenhouse-gas caps.

But since Japan’s Fukushima disaster, regulators have become more
concerned with the other things nuclear plants can emit in an
emergency. So while fuel costs are low, maintenance costs for enhanced
safeguards are rising.

UBS UBSN.VX -0.98% analyst Julien Dumoulin-Smith estimates fixed costs
per kilowatt of capacity at a nuclear plant are perhaps five times
those for a comparably sized coal plant. As capital improvements will
mostly flow through cash flow with only a smaller portion hitting
profits, it can mean a nuclear plant that turns a nominal profit can
actually generate negative free cash flow.

Smaller nuclear plants, with less output over which to spread fixed
costs, suffer most.Dominion Resources D +0.17% already has announced
it will close its 556-megawatt Kewaunee unit in Wisconsin. The average
U.S. nuclear plant capacity is 971 megawatts. There are 20 out of 104
stations with capacity of less than 800 megawatts, according to
Department of Energy data.

The silver lining for larger nuclear plants is that if smaller
competitors close, alongside coal plants, this should tighten the
electricity market and support prices. Ultimately, though, being able
to afford the price of allaying public safety fears depends on that
ever-elusive gas-price rally.

January 26, 2013 - Posted by Christina Macpherson | business and costs, USA