nuclear-news

Nuclear energy business dying a slow death?

Is There Any Hope Left For Nuclear Energy? By Nick Cunningham, Oil Price.com , 19 February 2015 “…… the IEA notes that the nuclear industry is going to need to demonstrate that it can build new power plants on time and within budget. On this objective, the industry is failing miserably. Nuclear power plants have often suffered from cost overruns and delays, one factor (among many) that put the industry into a decades-long lull beginning in the early 1980’s. The so-called “nuclear renaissance” was thought to put an end to these problems with a new generation of designs and modular construction. So far, it hasn’t played out that way.

One of the showcases of the nuclear renaissance was a reactor to be built by Areva in Finland. Using a new generation technology, the reactor would boast enhanced safety systems and demonstrate lower cost and more timely construction. However, after starting construction in 2005 and slated to be completed in 2009, several delays have pushed off its completion and dramatically inflated costs. Areva now hopes to complete the project by late 2018, more than a decade behind schedule and perhaps at double its initial estimated cost.

In the United States, President Barack Obama has placed a lot of faith in the nuclear renaissance, granting loan guarantees to two new nuclear reactors now under construction in Georgia. he reactors will use the Westinghouse AP1000, a new design that promises simplification and safety that will cut down on construction times…..

Unfortunately, in January 2015 Southern Company, the owner of the Georgia reactors, announced that their completion would be delayed by 18 months and cost an additional $720 million. The reactors could end up being completed of three years behind the initial schedule. As the first newly licensed nuclear reactors in three decades, the inability to complete the project on time could put a chill on the already moribund construction queue. Even Southern Company’s CEO, who has been a big proponent of nuclear power, downplayed the possibility his company would expand beyond Vogtle. …..

even in China reactors are being delayed. China’s most advanced reactor project announced its second delay in January. The project, using similar designs to the AP1000, may not be completed until 2016, three years behind schedule.

Meanwhile, a tidal wave of nuclear reactors will close down over the next 20 years as their operating licenses expire. There are 98 GW of nuclear capacity operatingin the U.S., many of which will see their lives end by the 2030s. And there are only about 5 GW under construction at this stage. In that context, there are huge question marks about the long-term viability for nuclear power in the United States…….it is unclear if even China can make up for the shrinking industry presence in the West, let alone meet the IEA’s ambitious scenario for 2050. http://oilprice.com/Alternative-Energy/Nuclear-Power/Is-There-Any-Hope-Left-For-Nuclear-Energy.html

February 21, 2015 - Posted by Christina Macpherson | 2 WORLD, business and costs