Financial problems escalate with delays in Nuclear Plant Vogtle

Cost pressure intensifies for Georgia nuclear plant http://www.sltrib.com/home/2121839-155/cost-pressure-intensifies-for-georgia-nuclear By RAY HENRY The Associated Press Atlanta 31 Jan 15, • The delays and cost overruns are piling up for a new plant in Georgia that was supposed to prove nuclear energy can be built affordably.
Southern Co. announced this week the builders of Plant Vogtle expect construction will be delayed 18 months. That would bring the total project delays to roughly three years.
The firms designing and building the plant, Westinghouse Electric Co. and Chicago Bridge and Iron Co., want Southern Co. and its co-owners to pay roughly $1 billion for previous delays and snags.
Regulatory filings show the latest delay could cost Southern Co. an additional $720 million. The other co-owners have not yet disclosed their potential costs. Similar delays and costs have surfaced at an identical project in South Carolina.
Enthusiasm by investors for Indian renewable energy project
“We have received commitment for investments for nearly 1.3 lakh MW of renewable energy from both the domestic and international players,” Goyal today said, speaking here on sidelines of an event organised by VASVIK………..
http://economictimes.indiatimes.com/articleshow/46069893.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cpps
More costs, another long delay for new nuclear facility in Georgia, USA

The latest delay at Plant Vogtle is another setback for a project that was supposed to prove nuclear reactors could be built on time and without the cost overruns that financially strained utilities decades ago. Power companies are already shuttering existing nuclear plants because natural gas is so cheap by comparison…….http://abcnews.go.com/Business/wireStory/builder-projects-18-month-delay-nuclear-plant-georgia-28594816
USA nuclear reactor corporations know that exports to India are nowhere near really happening
A year’s wait likely before commercial N-deals inked mydigitalFc.com By Subhash Narayan Jan 27 2015 The breakthrough in civil nuclear deal between India and US may be heads up for American equipment makers that plan to export eight unbuilt nuclear power reactors to India, but the companies will have to wait for up to a year before any commercial deal is inked with their Indian counterparts.
department of atomic energy on the other would take a year to conclude before projects can commence on ground in Andhra Pradesh and Gujarat, a government official said……….Toshiba’s Westinghouse Electric Company did not issue a statement but its chief executive officer Danny Roderick told Bloomberg that the company would look at commercial agreements with Indian only after studying the Indian government’s offer to create an insurance pool
“Let us understand that Indo-US civil nuclear deal is government-to-government agreement while the final deals have to reached between companies. There is sense that a lot still needs to be resolved,” said Debasish Mishra, partner at Deloitte Touche Tohmatsu……..
Under the umbrella agreement since the technology transfer will happen over a phased manner, nuclear reactor services companies are also likely to set up their shop in India through joint ventures with Indian entities.
The deal could also see increased exposure of Exim banks from US, Canada, Germany, France. Insurance companies from these countries are also likely to generate business.
Indo-US agreement provides for an insurance cover on liabilities to cover any disaster related liabilities.
Westinghouse has already been allotted a site in Modi’s home state of Gujarat to build a nuclear power station with total capacity of 2,500 MW and possibility of expansion in future. Similarly, two sites have also been identified for GE plants in Andhra Pradesh with an initial capacity of 3,200 MW………http://www.mydigitalfc.com/news/year%E2%80%99s-wait-likely-commercial-n-deals-inked-082
Many a slip twixt the much touted USA-India deal and commercial reality
Hurdles Remain in Nuclear Deal, Indian Express By B B Singh 30th January 2015 For almost two weeks prior to president Barack Obama’s visit to India, the negotiators from both the countries had been burning the midnight oil to operationalise Indo-US nuclear cooperation but hurdles seem to be emerging one after another. The first and the most talked about hurdle arose from Section 17 (b) of the Civil Liability for Nuclear Damage Act 2010, giving the right of recourse to the operator of the nuclear installation if nuclear incident resulted as a consequence of an act of the supplier or his employee which includes supply of equipment or material with patent or latent defects or sub-standard services.
This provision was introduced to ensure that the suppliers took utmost care since they would be liable even for “latent” defects that may exhibit their appearance in their equipment later on after extended exposure to nuclear related stresses. This problem seems to have been solved by India’s proposal for an insurance cover of `1500 crore out of which 50 per cent would be government contribution and the remaining from a pool of insurance companies which are public sector units.
Oddly, it would mean victims compensating victims.
The next conflict has arisen in respect of Section 46 of the Act which provides that its provisions shall be in addition to and not in derogation of any other law for the time being in force. It further provides that nothing contained in this Act shall exempt the operator from any proceeding which might, apart from this Act, be instituted against such operator or the suppliers directly or through the operator. The victims of nuclear incidents are thus entitled to file tort suits for unlimited damages and even criminal proceedings against the operator as well as suppliers. ………….
The story does not end here. There is still some more to come. Under the Hyde Act, the US president is further required to submit to an appropriate Congressional committee any significant changes in the nuclear activities of India including construction of nuclear facilities, production of nuclear weapons or changes in nature and amount of fissile material produced and the purpose and operational status of any unsafeguarded new nuclear facility.
Still further under the Hyde Act, the US president shall have to inform the Congress an estimate of the amount of uranium mined and milled in India and amount of such uranium that has likely been used or allocated for weapons; the rate of production of nuclear devices and the material used therein. Some procedure will have to be worked out in the administrative arrangements to achieve this objective and procure such information on India’s non-civilian nuclear activities for information to the US Congress. In view of these requirements, the Indian negotiators are likely to face still tougher uphill tasks ahead.http://www.newindianexpress.com/columns/Hurdles-Remain-in-Nuclear-Deal/2015/01/30/article2643619.ece
Renewable energy is getting a boost from the nuclear industry’s focus on climate change
“The nuclear industry giving credence to climate change from fossil fuels has simply led to a stronger renewables industry. …….now renewables, often thought of as useful complements to nuclear, begin to threaten it in power markets when there is abundant power from renewables when the wind blows and the sun shines.”
U-turn to nowhere: Nuclear’s dire outlook U-turn to nowhere: Nuclear’s dire outlook Business Spectator, 27 January 2015Jim Green “……. a long-standing pattern of stagnation continues. Global nuclear capacity grew by 10.6% in the two decades from 1995-2014, and just 2.6% in the decade from 2005-2014.
The pattern of stagnation is likely to persist. Steve Kidd, a nuclear consultant who worked for the World Nuclear Association for 17 years, wrote in a May 2014 article:
“Upper scenarios showing rapid nuclear growth in many countries including plants starting up in new countries now look very unlikely……….”Despite 20 years of stagnation, the World Nuclear Association remains upbeat. Its latest report, The World Nuclear Supply Chain: Outlook 2030, envisages the start-up of 266 new reactors by 2030. The figure is implausible.
Nuclear Energy Insider was more sober and reflective in an end-of-year review published in December: “As we embark on a new year, there are distinct challenges and opportunities on the horizon for the nuclear power industry. Many industry experts believe that technology like Small Nuclear Reactors (SMR) represent a strong future for nuclear. Yet, rapidly growing renewable energy sources, a bountiful and inexpensive supply of natural gas and oil, and the aging population of existing nuclear power plants represent challenges that the industry must address moving forward.”
Kidd’s comments on renewables are also worth quoting: “The nuclear industry giving credence to climate change from fossil fuels has simply led to a stronger renewables industry. Nuclear seems to be ’too difficult’ and gets sidelined − as it has within the entire process since the original Kyoto accords. And now renewables, often thought of as useful complements to nuclear, begin to threaten it in power markets when there is abundant power from renewables when the wind blows and the sun shines.”….. “nuclear power faces major challenges in competitive markets where there are significant market and regulatory risks, and public acceptance remains a critical issue worldwide.”…….
Politicians and public not keen for new nuclear reactors, as problems of the old ones multiply
The nuclear industry has a simple solution to the problem of old reactors: new reactors. But the battles over ageing and decommissioned reactors − and the raiding of taxpayers’ pockets to cover shortfalls − will make it that much more difficult to convince politicians and the public to support new reactors.
U-turn to nowhere: Nuclear’s dire outlook U-turn to nowhere: Nuclear’s dire outlook Business Spectator, 27 January 2015 Jim Green “……..The elephant in the room − ageing reactors The problem of ageing reactors came into focus in 2014 − and will remain in focus for decades to come with the average age of the world’s power reactors now 29 years and steadily increasing.
Problems with ageing reactors include:
– an increased risk of accidents (and associated problems such as generally inadequate accident liability arrangements);
– an increased rate of unplanned reactors outages (at one point last year, less than half of the UK’s nuclear capacity was available due to multiple outages);
– costly refurbishments;
– debates over appropriate safety standards for reactors designed decades ago; and
– the uncertainties and costs associated with reactor decommissioning and long-term nuclear waste management.
Greenpeace highlighted the problems associated with ageing reactors with the release of a detailed report last year,and emphasised the point by breaking into six ageing European nuclear plants on March 5, 2014.The International Energy Agency (IEA) said in its World Energy Outlook 2014 report: “A wave of retirements of ageing nuclear reactors is approaching: almost 200 of the 434 reactors operating at the end of 2013 are retired in the period to 2040, with the vast majority in the European Union, the United States, Russia and Japan.”
IEA chief economist Fatih Birol said: “Worldwide, we do not have much experience and I am afraid we are not well-prepared in terms of policies and funds which are devoted to decommissioning. A major concern for all of us is how we are going to deal with this massive surge in retirements in nuclear power plants.”The World Energy Outlook 2014 report estimates the cost of decommissioning reactors to be more than $US100 billion up to 2040, adding that “considerable uncertainties remain about these costs, reflecting the relatively limited experience to date in dismantling and decontaminating reactors and restoring sites for other uses.”
The IEA’s head of power generation analysis, Marco Baroni, said that even excluding waste disposal costs, the final cost could be as much as twice as high as the $100 billion estimate, and that decommissioning costs per reactor can vary by a factor of four.
Baroni said the issue was not the decommissioning cost per reactor but “whether enough funds have been set aside to provide for it.” Evidence of inadequate decommissioning funds is mounting. To give just one example, Entergy estimates a cost of $US1.24 billion to decommission Vermont Yankee, but the company’s decommissioning trust fund for the plant − $US670 million − is barely half that amount.
Michael Mariotte, president of the US Nuclear Information and Resource Service, noted in a recent article: “Entergy, for example, has only about half the needed money in its decommissioning fund (and even so still found it cheaper to close the reactor than keep it running); repeat that across the country with multiple and larger reactors and the shortfalls could be stunning. Expect heated battles in the coming years as nuclear utilities try to push the costs of the decommissioning fund shortfalls onto ratepayers.”
The nuclear industry has a simple solution to the problem of old reactors: new reactors. But the battles over ageing and decommissioned reactors − and the raiding of taxpayers’ pockets to cover shortfalls − will make it that much more difficult to convince politicians and the public to support new reactors.
Jim Green is the national nuclear campaigner with Friends of the Earth, Australia.https://www.businessspectator.com.au/article/2015/1/28/energy-markets/u-turn-nowhere-nuclears-dire-outlook
USA’s nuclear utilities want ratepayers to cough up for uneconomic nuclear power plants
America’s nuclear power utilities seek big ratepayer bailouts, Daily Kos.com by nirsnet JAN 23, 2015
America’s nuclear power utilities are increasingly saddled with aging, uneconomic reactors. Their operating and maintenance costs are rising, and in many locations they’re no longer able to compete with low-cost natural gas and the growing use of wind and solar power.
For a year now, Exelon, the nation’s largest nuclear utility, has been complaining–loudly–that at least five of its 11 Illinois reactors are uneconomic. And the nuclear giant has threatened to close some or all of these reactors if it can’t get some form of bailout (a word Exelon despises, but is nonetheless accurate). Of course, there are many who would feel much better if those threats were actually promises….
But Exelon hasn’t said what it wants Illinois to do about these threats. The utility has said it wants Illinois to institute a vague “market-based solution” to Exelon’s economic problems. Last year, Exelon floated the idea that it needs some $580 million/year in additional revenue to make up for its nuclear fleet’s losses. The utility did get the legislature last year to order state agencies to produce a report that Exelon hoped would provide backing for its position. But that report didn’t exactly do what Exelon wanted. Instead, it found that Illinois could easily handle the threatened reactor shutdowns; that if they occurred, it might bolster clean energy development in the state; and that bailing out Exelon would be expensive.
Why Exelon hasn’t articulated what it wants is obvious: it knows that when it puts down real numbers for the subsidies it seeks, then people will be able to figure out what a bailout may cost. Even the “market-based solution” Exelon wants, which is utility-speak for a means of hiding the costs, will have to have numbers attached to be meaningful………..
Exelon doesn’t appear to be gaining any new friends. Even the Chicago Sun-Times editorialized on the issue, beginning its piece: “The people of Illinois got a bit of good news Wednesday when a report by several state agencies essentially said nobody should rush in with baskets of cash to rescue Exelon’s fleet of nuclear power plants.” The paper said the legislature should “be in no hurry to play along” with Exelon.
NRG Energy, one of Exelon’s major competitors in the state, was even less charitable, saying in a statement to Midwest Energy News,
These reports demonstrate that the economic situation for multiple nuclear facilities is more manageable than originally thought. The report finds that the retirements of the Illinois nuclear fleet won’t cause reliability problems with the state’s electric supply, except under extreme scenarios never before seen in US energy markets. In addition, short-term job losses could be replaced with increased investment in energy efficiency and renewable energy.
In any event, any subsidy to these plants, already paid for many times over, is unnecessary and could easily cost more than the rate increase costs of nuclear plant retirements. Allowing the market to work, which means no “subsidy legislation,” will save ratepayers more than $120 million per year and create almost 10,000 new Illinois jobs between now and 2020.
……….In New York, meanwhile, Exelon is looking for another ratepayer bailout: this one for its antiquated Ginna reactor, which it says has lost $100 million over the past three years. Exelon wants the NY Public Service Commission to approve a new above-market power purchase contract with Rochester Gas & Electric that would cost ratepayers more than $200/year each. RG&E at first appeared willing to do so, but is now looking at other possible alternatives that would lead to Ginna’s shutdown…..
For its part, the second-largest nuclear utility, Entergy, already closed its uneconomic Vermont Yankee reactor. Its Pilgrim reactor in Massachusetts is also teetering on the edge of viability; Entergy’s solution so far is similar to one of Exelon’s ideas: get Pilgrim included in the state’s new Clean Energy Standard. As in Illinois, this wouldn’t lead to any new carbon reductions, but would serve to prevent investment in new, genuinely clean energy technologies. So far, Massachusetts has held firm in its view that no existing power plants, including Pilgrim, should be included in the new standard, but with a new Republican governor that stance could change. The state will hold public hearings on its standard in March.
Ohio’s FirstEnergy can be added to the list of bailout seekers. It is seeking subsidies that the Ohio Consumers Counsel puts at $3 Billion to keep its Davis-Besse reactor and some old, decrepit coal plants operating.
The portion for Davis-Besse alone is at least $171 million/year and NIRS estimates that the actual price tag may be $225 million/year above the market rate for electricity.
Ohioans are not happy with the prospect of such rate increases. As the Cleveland Plain-Dealer reported Wednesday, some 200 people crammed into a Public Utilities Commission of Ohio (PUCO) hearing in Cleveland “to vent rage about the company’s latest rate proposal, and at times, its actions over the last decade.”
As is the case elsewhere, some of FirstEnergy’s power plants, especially the Davis-Besse reactor and the Sammis coal plant, can’t compete with lower cost natural gas and wind power. Since FirstEnergy doesn’t own those gas and wind plants, it wants ratepayers to pay the much higher costs of keeping Davis-Besse and Sammis open……..
Lowest production in 16 years – uranium in Australia
Lowest Australian uranium production for 16 years, World Nuclear Association 23 Jan 15 Due to the shutdown of ERA’s Ranger plant to June, and despite the rich Four-Mile deposit coming on line, Australia’s uranium production in 2014 at 5897 tonnes U3O8 (5000 tU) was the lowest since 1998. Two thirds of it was from Olympic Dam, where uranium is a by-product of copper. Production from Four Mile is recovered at the Beverley plant, replacing output from that mine at about double the level. http://us1.campaign-archive1.com/?u=140c559a3b34d23ff7c6b48b9&id=e08ac096b6&e=ae5ca458a0
Nations make (optimistic) guesses at the cost of getting rid of old nuclear reactors
Getting Rid Of Old Nuclear Reactors Worldwide Is Going To Cost Way More Than People Think Business Insider, NINA CHESTNEY, GEERT DE CLERCQ LONDON/PARIS (Reuters) 20 Jan 15 –”…….The U.S.
Nuclear Regulatory Commission estimates that the cost of decommissioning in the United States – which has some 100 reactors – ranges from $US300 million to $US400 million per reactor, but some reactors might cost much more.
France’s top public auditor and the nuclear safety authority estimate the country’s decommissioning costs at between 28 billion and 32 billion euros ($US32-37 billion).
German utilities – such as E.ON, which last month said it would split in two, spinning off power plants to focus on renewable energy and power grids – have put aside 36 billion euros..
Britain’s bill for decommissioning and waste disposal is now estimated at 110 billion pounds ($US167 billion) over the next 100 years, double the 50 billion pound estimate made 10 years ago.
Japanese government estimates put the decommissioning cost of the country’s 48 reactors at around $US30 billion, but this is seen as conservative. Russia has 33 reactors and costs are seen ranging from $US500 million to $US1 billion per reactor……… http://www.businessinsider.com.au/r-global-nuclear-decommissioning-cost-seen-underestimated-may-spiral-2015-1
Uranium selling at price way below its costs of production, by Australian miner Paladin Energy
Paladin Energy Ltd revenues soar 79% but shares sink Motley Fool By Mike King – January 19, 2015 Uranium miner Paladin Energy Ltd (ASX: PDN) has announced sales of US$69.9 million in the December quarter, a rise of 79% over the previous quarter.
But despite the news, shares are down 2.8% at 35 cents at lunchtime.
So why are investors selling out of a stock reporting such strong growth?
The problem is that Paladin sold 1.9 million pounds of uranium in the quarter, at an average price of US$36.58 per pound. That last figure is the issue – that price is well below what it costs Paladin to produce the uranium, and there are no signs that the price is…[members only] http://www.fool.com.au/2015/01/19/paladin-energy-ltd-revenues-soar-79-but-shares-sink/
Small rally in uranium price didn’t last long
Uranium Rally Running Low on Juice After shooting higher, prices have come back down amid questions about how much more of the radioactive metal China needs to buy. BARRON’S Uranium bulls have long pointed to China’s nuclear-industry expansion as a catalyst for a recovery in the market. In mainland China, there are 22 nuclear reactors currently operating, 26 being built and more about to start construction, according to the World Nuclear Association.
However, Australian investment bank Macquarie thinks there are now “serious question marks” about how much uranium the world’s No. 2 economy will need. “China is clearly the most positive story globally when it comes to nuclear-power-capacity expansion,” according to Macquarie analysts. “The concern, however, is that China has already procured a substantial amount of uranium well in excess of what it has consumed and that this advance purchasing might limit its need to enter the market to source material over the next few years,” they add in a note.
Uranium prices have mostly languished since the 2011 Fukushima disaster………with uranium prices rising 37% from August through November as Japan moved closer to restarting its idled reactors. Consultants Ernst & Young said they thought the market had bottomed. Analysts at Australian brokerage Bell Potter agreed.
BUT THAT RECOVERY HAS STALLED…….While the revival of Japan’s nuclear sector is positive for prices, China’s potential demand is more important……..But Macquarie’s analysts say China’s growing store of uranium may be bigger than anyone previously thought. Their latest analysis suggests China increased its stockpiles by 17% last year and now has enough uranium to meet domestic demand for about seven years at forecast 2020 consumption rates. China doesn’t provide data on its uranium inventories…. JPMorgan expects uranium prices to average $30.70 a pound this year, down from last year’s $31.70…….http://online.barrons.com/articles/uranium-rally-running-low-on-juice-1421462807
China’s role in the nuclear marketing frenzy
Chinese nuclear firms urged to boost presence overseas South China Morning Post 16 Jan 15 China will push its big nuclear firms to improve their competitiveness and boost their presence overseas as it bids to become one of the world’s dominant nuclear energy powers, Premier Li Keqiang said.
“To continue the struggle to become a strong nuclear energy power, China must comprehensively raise the industry’s competitive advantages, promote nuclear power equipment overseas…..
the country’s two biggest state nuclear companies, China National Nuclear Corp (CNNC) and China General Nuclear Corp (CGN), have agreed to invest in Britain’s Hinkley Point nuclear project.
Wang Zhongtang, the chief engineer at State Nuclear Power Technology Corp, said China was also well on its way to securing projects in Turkey and South Africa.
China has been making steady progress on its own third-generation reactors, including the Hualong I, jointly developed by CNNC and CGN for the purpose of winning overseas projects.
Zheng Hua, a deputy chief engineer with CGN’s reactor design unit, said last month that China hoped to develop Hualong I reactors in Britain, building on the agreement to invest in Hinkley Point.
China was also considering a plan to merge CNNC and CGN in order to pool their resources and improve their competitiveness overseas, sources said late last year. http://www.scmp.com/business/economy/article/1680957/chinese-nuclear-firms-urged-boost-presence-overseas
China well up in the throng to market nuclear technology to other countries

China ready to sell nuclear fuel for NPPs in Ukraine and Eastern Europe — CNNC source http://itar-tass.com/en/world/771570 January 16, 15 Ukrainian energy sector workers are facing technical problems with American nuclear fuel loading into the Soviet-type reactors BEIJING, January 16. /TASS/. China is ready to sell fuel for nuclear power plants in Ukraine and Eastern Europe, a China National Nuclear Corporation (CNNC) source told TASS on Friday on the sidelines of the World Nuclear Spotlight forum.
According to the source, Chinese companies intend to sell the fuel to the countries that operate various types of Soviet-and Russian-made NPPs. Aside from Ukraine, China is viewing the possibility of exporting nuclear fuel to Hungary and Romania.
The source said Ukrainian energy sector workers are facing technical problems with American nuclear fuel loading into the Soviet-type reactors.
At the moment China is actively buying uranium mines with a view to exporting uranium to other countries in the foreseeable future. Asked about Russia’s possible claims to the Chinese manufacturers of nuclear fuel, he said that “there are no special restrictions.” “Despite the related agreements, the Russian side is unlikely to stop the supplies,” said the CNNC representative.
Russia and China have been actively developing co-operation in the nuclear sphere for many years. For example, State Atomic Energy Corporation Rosatom and CNNC signed a protocol to launch the discussion of possible formats of co-operation in the sphere of construction of nuclear power plants in third countries.
22 Fukushima-style reactors still operating in USA
Japan closing 5 reactors but U.S. still running its Fukushimas, Beyond Nuclear 17 Jan 15 The Japanese nuclear industry has announced it will permanently close five more of its remaining 48 “operable” nuclear reactors by March 2015, leaving the country with 43 reactors “operable” but still not actually “operating.” Two of the plants to be decommissioned are the same GE Mark I boiling water reactors identical to Fukushima. Despite the political landscape in Japan still promoting nuclear power, the anti-nuclear movement there continues to campaign to keep all of Japan’s reactors closed indeifinitely.
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