Fin24 29th Oct 2017, Finance Minister Malusi Gigaba says drastic steps are needed to help South
Africa’s ailing economy – including freezing senior civil servants’
salaries and selling chunks of state-owned enterprises. In an exclusive
interview with City Press on Friday, Gigaba unveiled the surprise moves,
which include slamming brakes on the country’s estimated R1 trillion
nuclear build programme, saying it is neither affordable nor currently
necessary. https://www.fin24.com/Budget/gigaba-says-no-to-nuclear-20171029-3
Building wind farms often cheaper than running old coal plants
Fluctuations in solar, wind power remain a challenge: Lazard
Building solar and wind farms has started to become a cheaper proposition than running aging coal and nuclear generators in parts of the U.S., according to financial adviser Lazard Ltd.
Take wind: Building and operating a utility-scale farm costs $30 to $60 a megawatt-hour over its lifetime, and that can drop to as low as $14 when factoring in subsidies, according an annual analysis that Lazard’s been performing for a decade. Meanwhile, just keeping an existing coal plant running can cost $26 to $39 and a nuclear one $25 to $32.
Two years ago, “what was interesting to us was the lifetime cost of renewables on an energy basis reached parity with conventional resources in a bunch of geographies in the U.S.,” said Jonathan Mir, head of the North American power group at Lazard. “Now, what we are seeing is that renewable technologies on a fully loaded basis are beating” existing coal and nuclear plants in some regions.
The report by Lazard, whose estimates are widely used in the power sector as benchmarks, comes as President Donald Trump’s administration is vowing to stop the “war on coal” and put America’s miners back to work. Hundreds of power plants burning the fuel have shut in recent years amid escalating competition from natural gas, wind and solar. Energy Secretary Rick Perry has proposed rewarding coal and nuclear plants with extra payments for their dependability, touching off a national debate over the country’s future power mix.
“We still need, in a modern grid, fuel diversification and a diverse generation stack,” Mir said.So someone has to think hard about how to organize this transition.”
The sudden swings in generation from wind and solar farms remain a challenge for power grid operators, he said. A modern system can handle renewables supplying about 30 percent of its power — and as much as 50 percent in some cases — but levels beyond that require storage technologies, he said.
Gas has helped, backstopping intermittent solar and wind generation. And their combined decline in costs is rapidly changing the U.S. power mix, Mir said. Globally, renewables are set to almost double from last year to make up 51 percent of the mix by 2040, according to Bloomberg New Energy Finance. The challenge of keeping open older plants has arrived faster than expected and more early retirements may ensue, he said.
These days, the most efficient gas-fired plants now cost about $700 a kilowatt to build, down from $1,000 to $1,100 five years ago, Mir said. Rooftop solar remains expensive in the U.S., costing four to five times as much as a utility-sized solar farm.
The drop in renewable energy costs is already changing how utilities operate, Mir said, using American Electric Power Co. as an example. Once the biggest burner of coal in the U.S., AEP is now planning to invest $4.5 billion in wind power and has said it could stop burning the fossil fuel altogether. “AEP is doing this because it is the cheapest way to provide energy,” he said.
Romandie 31st Oct 2017,[Machine translation] NewCo, Areva’s entity resulting from the
restructuring of the nuclear group refocused on the fuel cycle, has had to
depreciate some of its assets, particularly the uranium mine Imouraren in
Niger, according to a statement released Tuesday.
NewCo published Tuesday its accounts for a shortened eight-month period (from January 1 to August
31, 2017), a decision taken as part of the restructuring of the group and
the exit of this entity from the tax consolidation perimeter so far
constituted around Areva SA. Although the published financial results
cannot be compared to the previous year of 12 months, the group
nevertheless indicated that it had spent 256 million euros in new
impairments between 30 June and 31 August.
Among them, 210 million euros concern mining assets, including 178 million euros for the only Imouraren
mine in Niger. The exploitation of this gigantic mine has been in abeyance
for several years, for want of a favorable conjuncture in civilian nuclear
power. Areva had already depreciated this asset twice, in 2015 and 2016, by
respectively 194 and 316 million euros. The new impairment losses are
linked to “both the unfavorable change in the euro-dollar exchange rate and
the unfavorable change in market price expectations” (of uranium), the
group said.
US nuclear arsenal to cost $1.2tn over next 30 years, independent CBO report finds https://www.theguardian.com/world/2017/oct/31/us-nuclear-arsenal-cost-cbo-report CBO finds total price tag marks 25% increase from previous estimate
Nuclear Posture Review under way and expected by end of the year, Guardian, Julian Borger 1 Nov 17, The cost of the US nuclear arsenal over the next 30 years will be over $1.2tn, even before any new weapons ordered by the Trump administration, and is unlikely to be affordable without cuts elsewhere in the defence budget, according to a independent congressional report.
The total price tag marks nearly a 25% increase from previous estimate, taking in the modernisation programme established under the Obama administration, which account for $400bn, the Congressional Budget Office (CBO) found. The costs would peak in the 2020s and the 2030s.
A new Nuclear Posture Review is under way and expected around the end of the year. Trump has repeatedly vowed to bolster the nuclear stockpile, and the defence department is reportedly considering the development of a low-yield warhead for a ballistic missile, and reintroducing a sea-launched cruise missile, among a variety of new options.
The CBO report warns that such new capabilities would increase the total bill for the US arsenal yet further.
“If these plans reach fruition, it would be the largest nuclear build-up since the Reagan administration. This is not affordable,” said Stephen Schwartz, an independent nuclear analyst and editor of the book, Atomic Audit: The Costs and Consequences of US Nuclear Weapons Since 1940.
Pursuing nuclear modernization will be challenging in the current environment,” the report said, adding that it would compete with parallel ambitions to upgrade the navy and the air force, and increase the size of the army.
It is the first comprehensive costing of the US nuclear weapons programme. The report offers three approaches for cost reductions to make it affordable. One would keep the programme as is currently planned but delay elements of it, bringing potential savings of 5%.
The second looks at ways of reducing the programme but keeping to the existing ceiling agreed with Russia of 1550 deployed strategic warheads. One variant of that approach examined by the CBO would be to do without one leg of the nuclear ‘triad’, intercontinental ballistic missiles (ICBMs) and keeping air-launched and sea-launched weapons. That would generate savings of 10%, the report said.
The third approach would incorporate a reduction of the deployed strategic stockpile to 1000 warheads, a cut the defence department under the Obama administration said could be made without affecting the US nuclear deterrent, which would save 5% to 11% of the total.
“The report blows apart the “do everything or do nothing” false choice repeatedly posited by Pentagon officials,” Kingston Reif, the director for disarmament and threat reduction policy at the Arms Control Association, said. “But perhaps the biggest contribution of new CBO nuclear cost study is the evaluation of options to manage and reduce the mammoth price tag.”
Reif added: “Meanwhile, the Trump administration is reportedly considering adding new weapons to the arsenal, which would increase the budget train-wreck odds, and undermine US security.”
Gigaba says no to nuclear, Fin 24, 2017-10-29 – Sipho Masondo and Setumo Stone, Johannesburg – Finance Minister Malusi Gigaba says drastic steps are needed to help South Africa’s ailing economy – including freezing senior civil servants’ salaries and selling chunks of state-owned enterprises.
In an exclusive interview with City Press on Friday, Gigaba unveiled the surprise moves, which include slamming brakes on the country’s estimated R1 trillion nuclear build programme, saying it is neither affordable nor currently necessary.
“There was a time when it was felt that nuclear is necessary and it must be implemented and programmes were started. But it became clear, as the economy took a serious dip, that we were not going to afford nuclear, that the country couldn’t afford it and the budget couldn’t afford it,” he said.
“It is quite clear that, at present, we can meet our electricity needs and we can even meet them into the future, given the excess electricity that we have.”
Nuclear power, Gigaba said, will remain part of the country’s energy mix. However, this will only happen when the economy is growing fast, when there is “high uptake of electricity from intensive users, when we can see that we are reaching the stage where existing capacity is being fully utilised and the demand and supply margin is very narrow”.
Gigaba said it was not a “malicious view” to shelve the nuclear programme for now, considering the R50bn budget shortfall, a rising budget deficit, National Health Insurance, demands for free higher education, and a national debt to GDP ratio which is set to breach the 60% threshold by 2022.
“If you look at Eskom’s balance sheet, they will not be able to afford nuclear, they will need a guarantee from government. Government guarantees are ultimately state debt, because when a state-owned company cannot afford to pay the guarantees, the national fiscus needs to step in and pay. That is what happened at SAA,” he said…….http://www.fin24.com/Budget/gigaba-says-no-to-nuclear-20171029-3
L’Usine Nouvelle 27th Oct 2017[Machine translation] Areva in the quagmire of the Finnish EPR. A further
delay in commissioning the Olkiluoto EPR in Finland is further complicating
the task of Areva SA, the new entity dedicated mainly to the end of the
project.
At this rate, the EPR Flamanville (Channel) will be put into
service before that of Olkiluoto in Finland. On October 9th, the
Areva-Siemens consortium informed the Finnish electrician Teollisuuden
Voima Oyj (TVO) that he was still cutting back the connection to the
reactor network in May 2019. It was initially planned for 2009!
And the penultimate postponement fixed the end of the test period at the end of
2018. After ten years of overtaking and 5 billion euros of additional cost,
the consortium Areva-Siemens and the Finnish electricity company TVO accuse
each other of the delay. The first claims 3.5 billion euros in compensation
to TVO, which continues for 2.6 billion. https://www.usinenouvelle.com/article/areva-dans-le-bourbier-de-l-epr-finlandais.N604108
Military chiefs must find an extra £300 million in savings this year to
cover a rise in the cost of Britain’s replacement fleet of Trident
submarines, The Times can reveal. The army is set to take a hit, with
commanders ordered to make at least £100 million of efficiency savings on
top of hundreds of millions of pounds that have already been squeezed out
of threadbare budgets for training, maintenance, accommodation and travel. https://www.thetimes.co.uk/article/forces-must-find-300m-for-rising-trident-costs-bmxnl9
While Finance Minister Malusi Gigaba indicated that we don’t have enough money for the project, Fitch says it seems that government is still pushing for the project to go ahead with the new Energy Minister driving the process.Ilze-Marie Le Roux , 27 Oct 17, CAPE TOWN– Global ratings agency Fitch has raised questions about whether South Africa’s big nuclear build really is on the back burner.
But in a bleak statement released on Thursday, Fitch says that the appointment of David Mhlobo as the new Energy Minister sends contradictory signals.
Fitch is sceptical about the status of the nuclear build, as the massive programme would see the construction of between six and eight nuclear plants with a very hefty price tag, a price tag South Africa just can’t afford at the moment.
Gigaba made that point crystal clear in his medium-term budget speech but ratings agency Fitch says it seems that government is still pushing for the project to go ahead with the new Energy Minister driving the process.
Fitch’s statement also raised concerns about the lack of a proper plan to cut spending or to raise revenue, saying that it suggests deep divisions within the ruling party.
Fitch has already downgraded both the country’s foreign and local denominated debt to sub-investment grade.
French power group EDF lowers 2017 earnings and nuclear output targets, Reuters Staff, PARIS, Oct 27 (Reuters)– French state-controlled power group EDF lowered its 2017 targets for nuclear power output and for earnings before interest, tax, depreciation and amortisation (EBITDA), following restart delays at its Tricastin nuclear plant.
EDF said it was revising its 2017 nuclear output target down to 383-387 terrawatt-hour (TWh), compared to a previous revised target of 385-392 TWh.
Standard & Poors Global Market Intelligence 16th October 2017, Nuclear energy is in irreversible decline across the world, with the construction of new units appearing to bottom out, a new report found. “The deterioration of the situation is accelerating,” warned Paris-based nuclear consultant Mycle Schneider at the U.S. launch of the World Nuclear Industry
Status Report on Oct. 12 in Washington, D.C. The event was hosted by the anti-nuclear Natural Resources Defense Council, the Union of Concerned Scientists and the German Green Party-linked Heinrich Böll Stiftung North America foundation.
The 10th annual edition of the report provides a grim assessment of the worldwide nuclear industry. According to the report’s 2017 edition, the mean age of the world’s 403 reactors in operation as of July 1 is approximately 29 years while the mean age at retirement of the 169 reactors that have shut down was roughly 25 years. https://www.snl.com/web/client?auth=inherit#news/article?id=42284954&cdid=A-42284954-123
The disclosure came at a hearing of the Commons Public Accounts Committee looking at the huge cost of building Hinkley Point power station which critics see as uneconomic and not properly costed.
It was raised in a paper submitted to the committee by Professor Andy Stirling, Fellow of the Academy of Social Sciences, and Dr Phil Johnstone, from the Science Policy Research Unit, Sussex University, which questioned whether the Ministry of Defence is being subsidized by the civil nuclear industry.
Their paper pointed out this is never publicly discussed but added: “If a UK withdrawal from civil nuclear power on grounds of uncompetitive economics were to leave these shared costs borne entirely on the military side, then UK military nuclear infrastructures would be significantly more expensive.
“If civil nuclear commitments are being maintained (despite adverse economics) in order to help cover these shared costs, then it is this that amounts to a cross-subsidy.”
The point was taken up by Meg Hillier, chair of the PAC, last week. She questioned Stephen Lovegrove, former Permanent Secretary, Department for Energy and Climate Change, on the issue.
“Mr Lovegrove, there has been an argument put forward by Sussex University that Hinkley is a great opportunity to maintain our nuclear skills base. With your hat on at the Ministry of Defence, are you having discussions with the business Department about this?”
Lovegrove replied: “We are, yes. In my last year at DECC, I was in regular discussion with Jon Thompson, former Permanent Secretary at the MOD, to say that as a nation we are going into a fairly intense period of nuclear activity … We are building the new SSBNs (nuclear armed nuclear submarines) and completing the Astutes … We are completing the build of the nuclear submarines which carry conventional weaponry. We have at some point to renew the warheads, so there is very definitely an opportunity here for the nation to grasp in terms of building up its nuclear skills.
“I do not think that that is going to happen by accident; it is going to require concerted Government action to make it happen. We are speaking to colleagues at BEIS ( Business, Energy and Industrial Strategy) fairly repeatedly about it, and have a number of forums in which we are doing that.”
The Sussex University paper also pointed out that private industry was making the link. Their paper said: “Rolls Royce acknowledged for the first time in a major public statement, that there also exists a deep interlinkage between British civil and military nuclear industrial capabilities … stating that “expansion of a nuclear-capable skilled workforce through a civil nuclear UK programme would relieve the Ministry of Defence of the burden of developing and retaining skills and capability. This would free up valuable resources for other investments.”
India-US nuke deal signed without ground work: Ex-US Senator PTI|Oct 26, 2017, WASHINGTON: The landmark India-US civil nuclear deal was “dead at the very beginning” as it was signed without ground work, a former top Republican Senator has alleged, describing the agreement as more of an “arms deal” for American defence manufacturing companies.
Former Senator Larry Pressler, who has served as chairman of the US Senate’s Arms Control Subcommittee, told a Washington audience that the deal was much-praised “but there is no chance of it being implemented as the liability issues have not been addressed and it has not been worked through.”
He said that the India-US civil nuclear deal “was dead at the very beginning.
Pressler said that there was “no groundwork done” in India or the US on the civil nuclear deal.
The India-US nuclear cooperation agreement was signed in October 2008, ending India’s isolation by the West in the nuclear and space arena. The deal has given a significant boost to India’s nuclear energy production.
Pressler was speaking at an event organised by The Hudson Institute, a top American think-tank, to discuss his latest book ‘Neighbours in Arms: An American Senator s Quest for Disarmament in a Nuclear Subcontinent’.
“…There was nothing to it really. If you look into it, it is more of an arms sale agreement,” he alleged.
Pressler claimed the then US president Barack Obama’s visit to New Delhi was “largely an arms sale trip”.
He was speaking ahead of his medium-term Budget speech, which did not mention nuclear power plans.
A new integrated resource plan on energy would provide more clarity, he said.
Proposals for a nuclear building project have been debated with a new urgency since weekend reports that President Jacob Zuma had recently met a Russian delegation.
Both the Presidency and the Russian embassy in Pretoria have denied that there was such a meeting, at which Zuma was said to have come under pressure to start implementing the nuclear power project with Russia.
Zuma’s cabinet reshuffle last week included the appointment of David Mahlobo as energy minister.
Mahlobo was reported to have travelled to Russia with convicts Gayton McKenzie and Kenny Kunene to facilitate a R5-billion nuclear deal with Russian company Rosgeo. Mahlobo was state security minister at the time of the trip.
Allegations that the energy sector has been captured go beyond the nuclear project. PetroSA is also being investigated.
Independent 25th Oct 2017. A subsidy ban for new onshore wind farms could add £1bn onto energy bills
over five years by eschewing one of the cheapest forms of clean energy.
Generating power from new onshore wind farms would be £100m a year cheaper
than doing so from new nuclear reactors or biomass plants, and at least
£30m cheaper than under the latest offshore wind-power contracts,
according to research by the Energy & Climate Intelligence Unit, a
London-based non-profit group.
Regulators absolve Duke Energy customers of lingering Levy costs, By Malena Carollo, Times Staff Writer, October 25, 2017 TALLAHASSEE— For Duke Energy Florida customers, the never-built Levy Nuclear Project is finally,officially behind them. Per a unanimous decision by regulators Wednesday, Duke customers, who have doled out nearly $1 billion for Levy costs from 2009 to 2015, will not have to pay any more.
“I think that this settlement as a whole benefits consumers and is ultimately in the public interest,” said Ronald Brisé, commissioner with the Florida Public Service Commission, at Wednesday’s hearing
“We feel like the cost of Levy being written off is a small price to pay for moving forward,” Harry Sideris, president of Duke’s Florida operations, said in an interview with the Tampa Bay Times in late August.
The nuclear elephant-in-the-room resulted from Progress Energy, Duke’s predecessor, asking ratepayers for money up front for a future nuclear facility in Levy County. It was intended to reduce energy costs going forward, and paying ahead of time would speed the process along.
Though ratepayers were charged the upfront costs, Duke pulled the plug on the project in 2013.
According to Duke representatives at the Wednesday PSC hearing, customers will also not be charged for the cost of the land that the facility was meant to be built on. It will be considered for potential solar or natural gas facilities.
The agreement also signals a significant shift toward use of solar power. Over the next four years, Duke will add 700 megawatts of solar power, about 75 megawatts of which will come online by early 2019.
