nuclear-news

China’s delay in building reactors is watched in concern by US nuclear industry

Power plant projects closely watched International Falls Journal, ATLANTA (AP) 17 Feb 15, — U.S. power companies struggling with the escalating costs of building nuclear plants are closely watching similar efforts in China, where officials are expecting delays.

Two plants under construction in Sanmen and Haiyang, China, are the first-ever built using Westinghouse Electric Co.’s AP1000 reactor design. Utility companies in Georgia and South Carolina are building two similar plants in the United States using a very similar design. Since the project in China is further along, U.S. executives and safety regulators watch it closely…….

Meeting deadlines is critical for projects in both countries. When nuclear plant construction slows down, building and financing costs can soar. That problem hobbled the nuclear industry during earlier rounds of building. Proponents had hoped the new projects in China and the United States would demonstrate nuclear plants can be constructed without blowing budgets.

If nuclear plants go massively over budget, the nuclear industry will find it nearly impossible in the short run to compete against much-cheaper gas-fired plants…….

The projects in the United States are already under cost pressure. Westinghouse Electric Co. and Chicago Bridge & Iron Co. expect construction of two new AP1000 reactors at Plant Vogtle in eastern Georgia will go three years beyond the approved schedule, according to financial filings……..

Regulators in Georgia estimate the latest delays could push Southern Co.’s share of spending on the plant from $6.1 billion to more than $8 billion.

A sister plant owned by SCANA Corp. and Santee Cooper in South Carolina has run into similar delays and cost overruns. http://www.ifallsjournal.com/news/business/power-plant-projects-closely-watched/article_1b0cfa36-f047-5337-81c6-632b926ec139.html

February 18, 2015 - Posted by Christina Macpherson | business and costs