Nuclear power went backwards in 2019, and the outlook is bleak
| Jim Green, RenewEconomy, 11 Feb 2020
https://reneweconomy.com.au/nuclear-power-went-backwards-in-2019-and-the-outlook-is-bleak-61834/ Nuclear power went backwards last year with the permanent shutdown of nine power reactors and the startup (grid connection) of six. Startups were concentrated in Russia (three) and China (two), with one in South Korea. The shutdowns were spread across eight countries. Worse still for the industry – much worse – is the paucity of reactor construction starts. There were just three construction starts in 2019: one each in China and Russia, and Bushehr-2 in Iran which faces an uncertain future. No countries entered the nuclear power club in 2019 (construction starts or grid connections). The average age of the global reactor fleet passed 30 years in 2019. That’s an old fleet, increasingly prone to accidents, large and small; increasingly prone to extended outages and thus increasingly uncompetitive in electricity markets. As a result of the ageing of the reactor fleet, the International Atomic Energy Agency (IAEA) anticipates the closure of up to 139 GW from 2018‒2030 – more than one-third of current global capacity of 395 GW (including idle reactors in Japan). Based on IAEA figures, the industry will need about 10 new reactors (10 GW) each year just to match shutdowns. The industry did indeed average nearly 10 construction starts from 2008‒13. But the number has sharply declined in the aftermath of the Fukushima disaster and catastrophic cost overruns. There were more construction starts in 2010 (16) than in 2016‒19 combined (15). This table captures the birth, mid-life crisis (Fukushima) and death of the nuclear power mini-renaissance:
Diana Ürge-Vorsatz, Vice-Chair of an Intergovernmental Panel on Climate Change Working Group, notes in the foreword to the World Nuclear Industry Status Report 2019: “Trend indicators in the report suggest that the nuclear industry may have reached its historic maxima: nuclear power generation peaked in 2006, the number of reactors in operation in 2002, the share of nuclear power in the electricity mix in 1996, the number of reactors under construction in 1979, construction starts in 1976. As of mid-2019, there is one unit less in operation than in 1989.” The number of power reactors under construction has been falling slowly but steadily in recent years, from 68 in 2013 to 46 as of Jan. 2020 (52 according to the IAEA). The Era of Nuclear Decommissioning Currently, nuclear power reflects two contradictory dynamics. The earlier mini-renaissance is evident but will subside by the mid-2020s. The Era of Nuclear Decommissioning is in its infancy (with nine reactor closures, historians may mark 2019 as the beginning of this qualitatively new era) and will be in ever-sharper focus by the mid-2020s. The Era of Nuclear Decommissioning will be characterised by a decline in the number of operating reactors; an increasingly unreliable and accident-prone reactor fleet as aging sets in; countless battles over lifespan extensions for aging reactors; an internationalisation of anti-nuclear opposition as neighbouring countries object to the continued operation of aging reactors; and escalating battles over and problems with decommissioning and waste disposal. Until such time as the rot sets in, the nuclear industry can console itself with these 10-year figures indicating a marginal increase or decrease depending on whether reactors in long-term outage (most of them in Japan) are included or excluded. Including reactors in long-term outage is “misleading” and “clearly ridiculous” according to former World Nuclear Association executive Steve Kidd, because many of them may never operate again.
Pro-nuclear spin So how are the nuclear industry and its supporters responding to the industry’s miserable state? Mostly with denial and delusion. Here are the ‘top 6 nuclear power achievements‘ of 2019 according to the executive editor of POWER magazine. 1. World’s first EPR nuclear power plant enters commercial operation with the Sept. 2019 commencement of commercial operation of the second of two EPR reactors in Taishan, China. The original 2013/14 startup dates for Taishan 1 and 2 were missed by five years due to construction problems and safety concerns (including the extraordinary Creusot Forge scandal in France). Excavation work for the Taishan reactors began in 2008 and construction of the two reactors formally began in 2009 and 2010. China General Nuclear Power Corporation acknowledged a cost increase of 40 percent for the two Taishan reactors to US$11 billion. As a result of delays and cost overruns, the market for EPRs in China has all but evaporated. The EPR reactor under construction at Flamanville, France, is 10 years behind schedule: construction began in Dec. 2007, the planned startup date was 2012, and EDF now says that commercial operation cannot be expected before the end of 2022. The current cost estimate of €12.4 billion (US$13.7 billion) is 3.8 times greater than the original estimate of €3.3 billion (US$3.6 billion). The EPR reactor under construction at Olkiluoto, Finland, is 10 years behind schedule: construction began in April 2005, startup was anticipated in 2010, and startup is now scheduled in 2020. The current cost estimate of about €11 billion (US$12.2 billion) is 3.7 times greater than the original €3 billion (US$3.3 billion) price tag. The estimated combined cost of the two EPR reactors under construction at Hinkley Point, UK, including finance costs, is £26.7 billion (US$35.0 billion) (the EU’s 2014 estimate of £24.5 billion plus a £2.2 billion increase announced in July 2017). A decade ago, the estimated construction cost for one EPR reactor in the UK was almost seven times lower at £2 billion. The UK National Audit Office estimates that taxpayer subsidies for Hinkley Point will amount to £30 billion (US$39.4 billion), while other credible estimates put the figure as high as £50 billion (US$65.6 billion). Undeterred, POWER magazine claims that a 6-unit EPR project in India will be the world’s largest nuclear power plant “if completed as planned”. It would be a miracle if the project is completed as planned; indeed it would be a minor miracle if it even begins given funding constraints. 2. World’s first ACPR-1000 nuclear power plant begins commercial operation in China Grid connections of ACPR-1000 reactors in China in 2018 and 2019 mark a significant achievement. But the broader picture is highly uncertain. There has only been one reactor construction start in China in the past three years. The number of reactors under construction has fallen sharply from 20 in 2017 to 10 currently. No-one knows whether or not the Chinese nuclear program will regain momentum. Wind and solar combined generated nearly double the amount of electricity as nuclear in 2018. 3. Akademik Lomonosov connects to grid Estimated construction costs for Russia’s floating nuclear power plant (with two 32-MW ice-breaker-type reactors) increased more than four-fold and eventually amounted to well over US$10 million / megawatt (US$740 million / 64 MW). A 2016 OECD Nuclear Energy Agency report said that electricity produced by the plant is expected to cost about US$200 / MWh, with the high cost due to large staffing requirements, high fuel costs, and resources required to maintain the barge and coastal infrastructure. The primary purpose of Russia’s floating nuclear power plant is to help exploit fossil fuel reserves in the Arctic – fossil fuel reserves that are more accessible because of climate change. That isn’t anything to celebrate; it is disturbing and dystopian. 4. Vogtle nuclear expansion progresses Construction of the twin-AP1000 project in the US state of Georgia began in 2013 and the planned startup dates were April 2016 and April 2017. The project is 5.5 years behind schedule and it is unlikely that the revised completion dates of Nov. 2021 and Nov. 2022 will be met. In 2006, Westinghouse claimed it could build one AP1000 reactor for as little as US$1.4 billion. The current cost estimate for the two Vogtle reactors – US$27‒30+ billion – is 10 times higher. The Vogtle project only survives because of mind-boggling, multi-billion dollar taxpayer subsidies including US$12+ billion in loan guarantees, tax credits and much else besides. Westinghouse declared bankruptcy in 2017, largely as a result of its failed AP1000 projects in South Carolina (abandoned after the expenditure of at least US$9 billion) and Georgia, and Westinghouse’s parent company Toshiba was almost forced into bankruptcy and survives as a shadow of its former self. 5. NRC approves Clinch River nuclear site for small modular reactors (SMRs) 6. NuScale’s SMR design clears Phase 4 of NRC review process But who will pay for SMRs? Industry won’t budge without massive taxpayer subsidies. A 2018 US Department of Energy report states that to make a “meaningful” impact, about US$10 billion of government subsidies would be needed to deploy 6 gigawatts of SMR capacity by 2035. And the pro-nuclear authors of a 2018 article in the Proceedings of the National Academy of Science argue that for SMRs to make a significant contribution to US energy supply, “several hundred billion dollars of direct and indirect subsidies would be needed to support their development and deployment over the next several decades”. The prospects for SMRs are just as bleak in other countries. And as the AEMO/CSIRO GenCost 2019-20 report notes, SMRs in Australia would be 2-4 times more expensive per kW than wind and solar. Dr. Jim Green is the national nuclear campaigner with Friends of the Earth Australia and editor of the Nuclear Monitor newsletter.
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Ontario Power Generation says ‘no’ to proposed nuclear waste disposal site following opposition from Saugeen FN
Ontario Power Generation says ‘no’ to proposed nuclear waste disposal site following opposition from Saugeen FN Manitoulin Expositor, By Michael Erskine, February 5, 2020 SAUGEEN FIRST NATION – The Saugeen Ojibway Nation (comprised of the Chippewas of Saugeen First Nation and the Chippewas of Nawash Unceded First Nation) were asked to vote on a proposal to host a deep geologic repository (DGR) close to the shores of Lake Huron on the site of the Bruce nuclear power station. The response of the band membership was a resounding no, with 1,058 no votes out of 1,232 total votes (170 voted yes, with four spoiled ballots).
“This vote was an historic milestone and momentous victory for our people,” said Ogimaa Lester Anoquot in a release following the vote on Saturday. “We worked for many years for our right to exercise jurisdiction in our territory and the free, prior and informed consent of our people will be recognized.”
Ontario Power Generation (OPG) spokesperson Fred Kuntz accepted the result, noting that “OPG respects the decision of the SON community. We followed the SON process. So we will uphold our 2013 commitment not to proceed with the DGR at the Bruce site without their support, and now we will move forward to develop an alternate solution.”
An example of nuclear corporations conglomerate formed in desperate effort to promote Small Modular Nuclear Reactors
GE Hitachi Nuclear Energy and ČEZ Announce Small Modular Reactor Technology Collaboration in the Czech Republic. WILMINGTON, North Carolina—February 3, 2020—GE Hitachi Nuclear Energy (GEH) and ČEZ, a. s. (ČEZ), an integrated electricity conglomerate, have entered into a Memorandum of Understanding through which the companies have agreed to examine the economic and technical feasibility of potentially constructing a BWRX-300 in the Czech Republic…… https://www.powermag.com/press-releases/ge-hitachi-nuclear-energy-and-cez-announce-small-modular-reactor-technology-collaboration-in-the-czech-republic/
Nuclear weapons- the USA bomb making companies are doing great!
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The Cost and Composition of America’s Nuclear Weapons Arsenal
Visual Capitalist January 29, 2020, By Nick Routley The American nuclear weapons arsenal is nowhere near its 1960s peak, but there are still thousands of warheads in the stockpile today.The U.S. nuclear program is comprised of a complex network of facilities and weaponry, and of course the actual warheads themselves. Let’s look at the location of warheads, how they’re deployed, and the costs associated with running and refurbishing an aging nuclear program. Let’s launch into the data. [ Excellent graphs] Nuclear Weapons Map……Deployment Data……America’s Nuclear Weapons BudgetThe Congressional Budget Office (CBO) is required to project the 10-year costs of nuclear forces every two years. Though much of the program is shrouded in secrecy, the budget below [on original] provides an overview of the costs of running America’s nuclear weapons arsenal……. Back in the Bomb BusinessGenerally, we think of nuclear weapons stockpiles as a sunsetting resource, slowly being dismantled; however, since the treaty that ended the arms race collapsed in mid-2019, the flood gates may be opening once again. New warheads are reportedly rolling off the production line, and in the beginning of this year, Lockheed Martin was tapped by the U.S. Navy to manufacture low yield submarine-based nuclear missiles…. https://www.visualcapitalist.com/cost-and-composition-of-americas-nuclear-weapons-arsenal/ |
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Westinghouse will acquire the Rolls-Royce Civil Nuclear Systems and Services’ 11 locations in Canada, France, the United Kingdom and the United States.
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Westinghouse Expands Nuclear Services & Capabilities With Acquisition Of Rolls-Royce Civil Nuclear Systems And Services,NEWS PROVIDED BY
Westinghouse Electric Company LLC CRANBERRY TOWNSHIP, Pa., Jan. 31, 2020 /PRNewswire/ — Today, Westinghouse Electric Company will complete the acquisition of Rolls-Royce’s Civil Nuclear Systems and Services business in North America and in select sites in Europe…… Through the transaction, Westinghouse will acquire the Rolls-Royce Civil Nuclear Systems and Services’ 11 locations in Canada, France, the United Kingdom and the United States. These sites support plant automation and monitoring systems, field services, manufacturing and engineering services as well as digital engineering services. https://www.prnewswire.com/news-releases/westinghouse-expands-nuclear-services–capabilities-with-acquisition-of-rolls-royce-civil-nuclear-systems-and-services-300997009.html |
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Surplus nuclear power has become an embarrassment. Inflexible baseload power no longer needed.
Out of earshot of the politicians, the question of what to do with all the surplus power when demand is low is being tackled by increasing storage capacity but also by making green hydrogen. Some nuclear buffs are even suggesting hydrogen production might be the only viable hope for using up their spare power.
Long Island Power Authority ratepayers will have to Subsidize Upstate Nuclear Power Plants
LIPA Customers To Subsidize Upstate Nuclear Power Plants.wshu, By JAY SHAH 29 Jan 2020 Long Island Power Authority ratepayers could spend more than $800 million over the next decade to help fund upstate nuclear power plants.
LIPA will have to buy zero-emission credits through a state agency, which subsidizes energy generators that don’t emit greenhouse gases, like [?] nuclear power plants. …….https://www.wshu.org/post/lipa-customers-subsidize-upstate-nuclear-power-plants#stream/0
India joins the panic to sell costly, impractical, nuclear power to Africa and Middle East
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Indian Envoy To Russia Says Countries Could Build Nuclear Power Plants In Africa & Middle East Caspian Newa By Vusala Abbasova January 26, 2020 Russia and India may team up to construct nuclear power plants in Africa and the Middle East, according to India’s ambassador to Russia, building on their current experiences in Bangladesh.
“We are already working under the scheme in Bangladesh,” Varna added, referring to the current construction of the country’s first nuclear power plant, called Rooppur. “Now Russia is also pretty active in the construction of nuclear power plants in the Middle East and Africa. That opens a new pathway of cooperation for us.” Varma believes the two sides could also launch projects in Africa using the experience they gained from joint work on Rooppur, which is being built by Russia’s Rosatom State Atomic Energy Corporation and costing over $13 billion. “Russia already has agreements in this field with a number of African countries,” Varma said. “Ethiopia is one of them, and there are some countries in the Middle East.”
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In UK “big” nuclear power versus “small” (both unaffordable) at Wylfa
The global nuclear lobby might look like a unified force – it’s anything but!. The nuclear nations fight each other in desperately trying to flog off their unaffordable white elephant nuclear reactors to ‘developing’ countries, or to any sucker, really. .
The nuclear industry itself is divided – the ‘conventional’ big nuclear reactors versus the (not yet existing) Small and Medium Nuclear Reactors (SMRs)
‘No plans’ for Wylfa mini nuclear power station according to developer, https://www.dailypost.co.uk/news/north-wales-news/no-plans-wylfa-mini-nuclear-17599188, Owen Hughes, Business correspondent, 20 JAN 2020
Horizon Nuclear Power said its full focus is on delivering a full scale nuke plant.
Wylfa Newydd developer Horizon Nuclear Power says there are “no plans” to build mini reactors at its Anglesey site.
Rolls Royce is currently leading a consortium developing the technology for Small Modular Reactors (SMRs) – supported by the UK Government. Trawsfynydd in Gwynedd has been tipped at a prime spot for one of the reactors and over the weekend Wylfa was also reported as a target location.
But Horizon has released a statement making clear the Wylfa site is not being put forward for this technology as they press on with the current plan for a full scale nuclear site.
A spokesman said: “There are no plans to deploy a Rolls Royce Small Modular Reactor at the Wylfa Newydd site.”
He added: “Activity on the Horizon project is currently suspended, but we’re working hard to establish the conditions for a restart using our tried and tested reactor design, which has already cleared the UK regulators’ assessment process.
Energy Secretary Andrea Leadsom wants additional information before deciding whether to give planning permission for Wylfa Newydd.
She deferred the decision on the site in October.
If permission is granted then the next step will be securing funding to make the project happen.
When it comes to SMRs, Alan Woods, strategy and business development director for Rolls-Royce, said they were focusing on sites in Wales and the north of England. Modular reactors are smaller and, once the first is approved and built, manufacturers hope mass-production will lead to shorter construction times and lower costs for each unit.
The consortium will need to establish factories to produce the small modular reactors with the pre-fabricated modules transported to sites for construction.
$123 billion the cost of safety measures for Japan’s nuclear stations
Costs for managing Japan’s nuclear plants to total 13 trillion yen, https://english.kyodonews.net/news/2020/01/8722fafaff9b-costs-for-managing-japans-nuclear-plants-to-total-13-trillion-yen.html
KYODO NEWS – Jan 15, 2020 The total costs to implement government-mandated safety measures, maintain facilities and decommission commercially operated nuclear power plants in Japan will reach around 13.46 trillion yen ($123 billion), a Kyodo News tally showed Wednesday.
The amount, which could balloon further and eventually lead to higher electricity fees, was calculated based on financial documents from 11 power companies that own 57 nuclear reactors at 19 plants, as well as interviews with the utilities.
Two years after the 2011 Fukushima nuclear crisis, the Japanese government introduced new safety standards which made measures against natural disasters and major accidents mandatory for restarting reactors.
The power companies have been given the option of either maintaining their idled nuclear power plants and restarting them once they had implemented the required safety measures, or decommissioning their plants. But it has become clear either choice required massive costs.
Of the total costs, 5.4 trillion yen was for safety measures implemented as of last month at 15 power plants they are trying to restart.
Decommissioning costs for 17 reactors belonging to nine nuclear power plants, which were deemed too expensive to implement safety measures for, totaled around 849.2 billion yen.
As the estimated costs for decommissioning the No. 1 to No. 4 reactors at the Fukushima Daiichi nuclear power plant run by Tokyo Electric Power Company Holdings Inc. differ, they were not included in the figure.
Maintenance costs, which will not only apply to restarted plants in operation but also to idled ones and those in the process of being decommissioned, are required for 54 reactors at 17 plants.
Those under construction were excluded. In the six years from fiscal 2013, when the new regulations were introduced, they totaled around 7.2 trillion yen.
The costs include labor, repairs and others considered nuclear power plant expenses as shown in each company’s annual securities report. But plant depreciation costs and a reserve for dismantling facilities were subtracted as they overlapped with some expenses for safety measures and decommissioning.
Maintenance fees will be required every year moving forward and are expected to continue to grow from the annual costs of around 1 trillion yen across the 11 utilities.
The total costs could further rise by several hundred billion yen as money needed to construct anti-terrorist facilities, also required under the new safety standards, was not included in the figures of some of the companies.
The majority of the 17 reactors at nine power plants slated for decommissioning are aging and they also include four at the Fukushima Daini complex, which local officials requested to be scrapped.
Romania quits deal with China for new nuclear reactors
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Romania to exit deal with Chinese company for new nuclear reactors https://www.romania-insider.com/ro-exit-deal-cgn-nuclear-jan-2020 Romania’s Government will exit the deal with the Chinese partner for the construction of reactors 3 and 4 at the Cernavoda nuclear power plant, prime minister Ludovic Orban announced in an interview with Hotnews.ro.“It is clear to me that the partnership with the Chinese company is not going to work,” Orban said, adding that the Government has already started to look for a new partner and financing for this project.
In 2015, Romanian state-owned electricity producer Nuclearelectrica, the company that operates the Cernavoda nuclear power plant, signed a memorandum of understanding with China General Nuclear Power Corporation (CGN) for the construction of two new reactors (3 and 4). On May 8 last year, the two sides officially signed the preliminary agreement on the construction and operation of two new reactors. However, the cooperation between Nuclearelectrica and CGN became uncertain after Romania’s president Klaus Iohannis and U.S. president Donald Trump signed a joint declaration in Washington, on August 21, that mentioned, among others, a closer cooperation between U.S. and Romania in the field of nuclear energy. In September, former PM Viorica Dancila also signed a memorandum in this regard with U.S. Energy Secretary Rick Perry. Moreover, China General Nuclear Power Corporation was accused of nuclear espionage by the U.S. Government back in 2016. |
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In Turkey, renewable energy rising, as nuclear partnership with Japan is scrapped
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Turkey, Japan scrap partnership in Sinop nuclear plant in Turkey’s north, Hurriyet Daily News, 20 Jan 2020, Turkey is reassessing its major partner for the country’s second nuclear plant in the Black Sea province of Sinop, Energy Minister Fatih Dönmez said on Jan. 19.In an interview with state-run Anadolu Agency, Dönmez said that the time schedule and pricing of the nuclear power plant in Sinop fell short of the ministry’s expectations after the results of feasibility studies, carried out by Japanese Mitsubishi Heavy Industries, Ltd., came out.
“We agreed with the Japanese side to not continue our cooperation regarding this matter,” Dönmez said…….. An intergovernmental agreement was signed between Turkey and Russia in May 2010 for Akkuyu NPP, the first nuclear plant of Turkey that will have four VVER-1200 power reactors with a total installed capacity of 4,800 megawatts. …… Share of local and renewable energy increases to 62 pct Dönmez also said Turkey saw an increase in the share of local and renewable resources for the country’s electricity production. Electricity production from local and renewables sources in 2019 amounted to 62 percent compared to 49 percent in 2018, a 13 percent increase, he further elaborated……… http://www.hurriyetdailynews.com/turkey-japan-scrap-partnership-in-sinop-nuclear-plant-in-turkeys-north-151212 |
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The highly controversial question of how to fund UK’s nuclear build
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Momentum Builds for UK Government to Self-Fund New Nuclear Plants https://www.greentechmedia.com/articles/read/momentum-builds-for-uk-government-to-fund-new-nuclear-itself
The U.K. government wants new nuclear capacity. How it will be funded remains a highly contentious question. JOHN PARNELL JANUARY 15, 2020 When the U.K. government unveiled its contract for difference with EDF’s 3.2-gigawatt Hinkley Point C nuclear power station in 2012, it proudly proclaimed that the arrangement proved new nuclear did not need direct subsidy.
Since then, three other U.K. projects have been put on an indefinite pause after Hitachi and Toshiba said their respective ventures had failed to attract investors. While the 35-year contract for difference (CFD) awarded to EDF is considered generous at £92.50 ($120) per megawatt-hour, the French energy giant is on the hook for overrun costs — no small concession. A 2014 study found that of a global sample of 180 nuclear power plants, 97 percent ended up over budget. There is an acceptance in the nuclear industry and at the government level that the CFD approach won’t be used for nuclear again in the U.K. Yet all but one of the country’s 15 working reactors are going offline by 2030, and the process of replacing them is behind schedule. A new approach is needed — and quickly. Sizewell C is the next active nuclear project in the U.K. pipeline. It will be a carbon copy of EDF’s Hinkley C, offering project savings and a readymade supply chain. The plan is to switch the workforce from one site to the other. How Sizewell C will be funded, however, remains an open question. The government launched a consultation in July 2019 on a new method that could be used for Sizewell C. That process closed in October, but between Brexit and an election, there has been no response from the government since. EDF has reportedly become twitchy about the timeline, telling the government it needs to know how Sizewell C will be funded by the end of the year if it’s to have any chance of starting construction in 2022. The Department for Business, Energy & Industrial Strategy told GTM it would follow up on the consultation’s responses “in due course.” RAB: Nuclear’s next top model?The government is seeking feedback on one possible new approach for Sizewell C known as regulated asset base (RAB), which is already in use for other big infrastructure projects. The RAB model basically gives the project developer a means to recover its investment through consumer bills under the watchful gaze of a regulator — including payments during the construction phase. It’s the model used by the country’s water monopolies to pay for their infrastructure. But pipes and pumps are generally simpler and cheaper than new nuclear. The biggest RAB deal in the U.K. so far is the £13.5 billion extension of Heathrow Airport. The most conservative estimate for Sizewell C is £20 billion ($26 billion). (Its forerunner Hinkley Point C is sitting at £22 billion and counting.) Taking this approach would be a first for the energy sector and a first for RABs. An entirely new entity, within or outside current regulator Ofgem, would have to step up to monitor how funds were being recouped from bills. EDF and other nuclear developers wouldn’t be paid if projects never make it to financial close, potentially leaving them exposed to the predevelopment costs. But clarity is still needed on which entities would be exposed to various other risks, and there is danger that in the event of project costs rising, billpayers would be stuck with the tab. Another option: State-backed nuclear funding?Meanwhile, a number of respondents to the government’s consultation say the government should take another, more controversial route: stepping in to build new nuclear itself, then quickly selling completed plants to the private sector. The U.K. government celebrated the fact that it wasn’t sinking state money into Hinkley Point C when the CFD was awarded. But after all, that project is being developed by two other state-run companies, albeit ones from France and China. In its response to the government’s consultation on funding options, the independent Nuclear Energy Consulting Group called for a new nuclear Crown Corporation, a state-backed investment vehicle, to step in to build nuclear projects. “This new entity would act as an owner or funder of new [nuclear power] projects from inception to commercial operation, with project risks and benefits during development and construction remaining with [HM government],” write authors Edward Kee, Ruediger Koenig, Paul Murphy and Xavier Rollat. In an email to GTM, Edward Kee, the CEO of Nuclear Energy Consulting Group, shared the group’s reservations about the RAB model. “We have doubts that developing and implementing a nuclear power RAB framework would happen fast enough. It is also unclear that the RAB approach would deliver the needed nuclear power investment, even when put into place,” said Kee. The International Project Finance Association, whose members include the World Bank, the U.S. Treasury and many major investors, agreed that the U.K. government should consider funding nuclear projects. “An alternative structure would be for government to procure construction on the balance sheet (so that the government would own the project and pay for construction as the costs are incurred), and then look to sell the project to the private sector once operational,” the IPFA suggested in its response. Energy Systems Catapult, a not-for-profit innovation center established by the government itself, also backs using the national balance sheet to build new nuclear at the lowest cost. The potential funding pool for new nuclear in Europe shrank in December when the EU published a definitive list of what can be considered for “sustainable finance.” Nuclear power did not make the grade, and nuclear won’t be financed as part of the EU’s recently announced Green Deal. Whether financial institutions follow the EU’s lead remains to be seen. The government declined to comment on its position toward directly funding and owning new nuclear power assets. “New nuclear has an important role to play in providing reliable, low-carbon power as part of our future energy mix as we aim to eliminate our contribution to climate change by 2050,” a spokesperson said. “However, we are clear that any energy project must offer value for money for consumers.” Does the U.K. need new nuclear at all?Other influential groups remain open or even supportive of the RAB model for funding new nuclear. The union Unite is receptive to a RAB framework but began its own response by saying it “favors a policy of state ownership of the energy sector.” The union also warned against letting what it views as inevitable cost overruns be passed on to energy-intensive consumers, which might then take their operations and jobs elsewhere. Trade body EnergyUK said it supports the development of an RAB model but added that it views a levy on consumer bills as a more regressive approach to funding than using general taxation. At the same time, other groups are questioning the government’s commitment to new nuclear. Citizens Advice, the powerful consumer watchdog, said it does not believe RAB would deliver good value. The union Unite is receptive to a RAB framework but began its own response by saying it “favors a policy of state ownership of the energy sector.” The union also warned against letting what it views as inevitable cost overruns be passed on to energy-intensive consumers, which might then take their operations and jobs elsewhere. Trade body EnergyUK said it supports the development of an RAB model but added that it views a levy on consumer bills as a more regressive approach to funding than using general taxation. At the same time, other groups are questioning the government’s commitment to new nuclear. Citizens Advice, the powerful consumer watchdog, said it does not believe RAB would deliver good value. “Several of the government’s own advisors, including both the Committee on Climate Change and the National Infrastructure Commission, are less definitive on the case for new nuclear than it is,” the group states in its response to the consultation. “If new nuclear is an option rather than a necessity, its economics come more sharply into play, and they are challenging when compared to a range of other low-carbon options.” Citizens Advice said it wants to see a detailed business case for new nuclear prior to any contracts being signed. It claims the value-for-money assessment on Hinkley C was published after the deal was legally binding and was only three pages long. The group also pointed out the elephant in the room: Brexit. To date, the investor pool for new U.K. nuclear has been largely populated by firms backed by foreign governments, including those that we may need to strike trade deals with in the coming years, meaning that there are political as well as economic considerations at play,” it wrote. “These factors would make it extremely hard for any regulator to take any steps that might result in the abandonment of a new nuclear project, even if costs were to escalate significantly. This would dilute their ability to act in consumers’ best interests.” |
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Significant drop in France’s nuclear energy production
Reuters 10th Jan 2020, EDF’s French nuclear power generation fell by a more than expected 3.5 percent last year, the state-owned utility said on Friday. The French company’s domestic nuclear output power dropped to 379.5 terawatt hours (TWh), missing a revised production target of between 384 TWh and 388 TWh.power output tumbling in the final month of 2019 by 15.2% to 33 TWh. The
operator of France’s 58 nuclear reactors, covering about 75% of the
country’s electricity needs, had revised its 2019 nuclear production
target from 390 TWh to between 384 TWh and 388 TWh in November because of reactor maintenance and safety checks after an earthquake.
Britain’s Sizewell nuclear project in jeopardy, as EDF struggles to get funding
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