nuclear-news

US Nuclear Site Cleanup Underfunded By Up To $70 Billion, Clean Technica, December 1st, 2020 by Michael Barnard 

That’s why Brookfield bought the bankrupt Toshiba Westinghouse division, for the long-term, guaranteed decommissioning revenue. SNC Lavalin bought Canada’s CANDU for the same reason, although I’m sure they are at the trough on the Canadian SMR idiocy too.

This isn’t exactly a secret. Nuclear projects always go over budget and over schedule, and there is exactly zero reason to believe decommissioning estimates provided by the industry. So why have jurisdictions been building more nuclear plants, whether at the egregious but at least honest costs of Hinkley, or the massively underestimated but increasingly obvious costs of the Virgil C. Summer and Vogtle sites? Three reasons.

The first is the magic of net present value. That calculates the value of future dollars today given inflation. Just as a thousand bucks bought a lot more in 1990 than it does today, in 2050 it will buy a lot less than it does today. That means that liabilities that will be incurred decades in the future approach zero cost in today’s cost benefit analysis. Can you say generational inequity?

The second is ideology. When really blatantly obvious economic sense gets thrown out the window, you start looking around for irrationality or graft. A lot of conservatives really hate onshore wind because it spoils the views from their manses (UK) or ranches (US) or country estates (Oz). They also think of wind and solar as inadequate hippy shit. They think nuclear is the answer. These are opinions that they formed in the 1970s or perhaps the 1980s, but conservatives have a stronger tendency to not let empirical reality change their mind. So Hinkley, Vogtle, and Summer are a triumph of ideology over reality.

The third is graft. When we start talking about $10 billion or more to build a plant, billions in subsidies, and another billion to take the thing apart, a lot of people start rubbing their hands together and figuring out who they have to bribe now to get a big payoff later. The entire regulatory structure in the two states that had nuclear plants in construction until recently when one was finally put out of the state’s fiscal misery were both structured so that no matter how much the utility spent, it was guaranteed a set profit. If they built a $15 billion nuclear plant, they made a lot of profit off of the rate payers. If they built $2 billion worth of wind and solar instead, they made a lot less money off of the rate payers. It’s dumb as a box of hammers, but it’s part of the reason a lot of utilities love nuclear, and coal-generation carbon capture schemes to boot. They are licenses to print money.

Outside of China, where they have trained resources who can build nuclear plants who would be mediocre at building wind and solar (which they are building a lot more of) and nuclear plants will displace coal plants, it doesn’t make a lot of sense to build new nuclear. The looming decommissioning debacle is just the icing on the cake.

Wind and solar have proven themselves to be vastly cheaper, completely reliable on grids, and easy to integrate in very large amounts. Their decommissioning costs are trivial. That’s yet another reason why nuclear is dead, but pretending it’s not.   https://cleantechnica.com/2020/12/01/us-nuclear-site-cleanup-underfunded-by-up-to-70-billion/