EU Needs $460 Billion Investment Just To Maintain Nuclear Power Capacity, let alone build new
Oil Price.com By Tsvetana Paraskova – Nov 11, 2022,
The European Union will need up to $462 billion (450 billion euros) in investment just to keep the current level of its nuclear power generation capacity, the EU Commissioner for Energy, Kadri Simson, said at a nuclear energy forum this week……..
This year, a year when surging energy prices have highlighted the importance of energy security, the EU is particularly focused on its nuclear power availability.
According to the EU modeling, nuclear power generation will account for around 15%-16% of the EU’s power output in 2030 and 2050, Simson said.
The EU needs a stable generation capacity, at the level of just over 100 GW, in the coming decades. Yet, a lot of investment will be needed to keep that generation capacity in the future.
“Our analysis shows that without immediate investment, around 90% of existing reactors would be shut down around the time when we need them most – in 2030,” Simson noted.
The EU will need between $360 billion (350 billion euros) and $462 billion (450 billion euros) of investment just to maintain the current generation capacity, and another up to $51.3 billion (50 billion euros) in the long-term operation of existing reactors, according to the EU commissioner……… EU Needs $460 Billion Investment To Maintain Nuclear Power Capacity | OilPrice.com
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‘Subpoenas’ Served on US Weapons Manufacturers
These four corporations are representative of the modern-day piracy that is the U.S. war industry, a corporate capture of U.S. foreign policy, the Congress, the Departments of Defense and State, and the U.S. economic system.
https://www.commondreams.org/views/2022/11/11/subpoenas-served-us-weapons-manufacturers BRAD WOLF, November 11, 2022
What is it like to be so ashamed of the company for whom you work that you cannot bring yourself to admit you work there? Ashamed of the products they manufacture, the innocent people those products kill, the hundreds of billions of dollars of public taxpayer money squandered in a gluttonous pursuit of profits?
This is life as seen on November 10th, 2022, at Raytheon Technologies in Arlington, VA. Members and supporters of the Merchants of Death War Crimes Tribunal, a public tribunal, served “subpoenas” on four United States weapons manufacturers charging them with War Crimes, Crimes Against Humanity, Theft, and Bribery.
The other three corporations served that same day were Lockheed Martin, Boeing, and General Atomics. These four corporations are representative of the modern-day piracy that is the U.S. war industry, a corporate capture of U.S. foreign policy, the Congress, the Departments of Defense and State, and the U.S. economic system.
Raytheon Technologies occupies a towering office building in Arlington, a stone’s throw from the Pentagon and Arlington National Cemetery, two sites commemorating death and the utter failure of war. Though the Raytheon building has its corporate logo plastered in blood-red letters at the top, once inside no sign exists evidencing this corporate war profiteer. No name, no logo, no receptionist. A sad attempt to hide their dealings in the black art of war.
When asked, security guards refused to acknowledge Raytheon was in the building. Of the dozens of employees who passed, none would admit they worked at Raytheon, averting their eyes as they hurried away. When police arrived to escort the Tribunal members and supporters off premises, the police would not acknowledge Raytheon was headquartered there. Just like the employees, they had their orders. Keep quiet, admit nothing.
It was silent as a tomb except for the voices of the Tribunal members speaking the truth about the trail of suffering and death Raytheon and its corporate brethren have left across Iraq, Afghanistan, Pakistan, Syria, Somalia, and the Palestinian Occupied Territory. Meanwhile, these Merchants of Death have left the United States financially, morally, and spiritually bankrupt.
Raytheon Technologies has a market capitalization of $96 billion. According to Macrotrends, Raytheon Technologies revenue for the quarter ending September 30, 2022 was $16.951B, a 4.55% increase year-over-year. For 2021 it was $64.388B, a 13.79% increase from 2020, for 2020 was $56.587B, a 24.78% increase from 2019, and for 2019 was $45.349B, a 30.68% increase from 2018. In four years, they have garnered almost a 70% increase in revenue. Marketing death is good for profits if you can live with yourself. Apparently, given their silence, many Raytheon employees struggle with this very issue.
Raytheon builds some of the most destabilizing, destructive, and expensive weapons on earth. The Hypersonic Missile which travels in excess of five times the speed of sound — Mach 5 — covering vast distances in minutes. It is “hard to stop and flies nimbly to avoid detection and dodge defensive countermeasures.” All these are attributes which make the missile so destabilizing to a foreign leader who has only minutes to determine whether they are being attacked with a nuclear weapon.
Raytheon makes the Peregrine Air-to-Air Missile which they claim “increases firepower, penetrates bad weather, and goes the distance.” Add to that their plans to use “high power microwaves” in war and we see the epitome of a Merchant of Death.
Boeing, General Atomics, and Lockheed Martin are the same. They too revel in blood money as they build for war and drain the U.S. economy. In fact, some $8 trillion in U.S. taxpayer money has been given to U.S. defense contractors over the last twenty years.
The U.S. War Industry plays a key role in fomenting war with their congressional lobbying, not just pushing for weapons contracts but influencing military strategy, thereby exacerbating and prolonging the anguish of civilians bearing the brunt of these wars of choice. On the issue of war in particular, Congress must be answerable to its citizens, not a handful of corporations.
With their silence on November 10, these weapons manufacturers revealed their shame. Their corporate mission statement is “War Begets Profit.” For the Merchants of Death War Crimes Tribunal, the mission statement is “Come War Profiteers, Give Account.” Stand before a Tribunal and be judged.
And so, what is it like to give your talents to a corporation which hides its very existence, to give all your efforts and education and experience in the creation of weapons which kill indiscriminately? Their loss of words, their averting eyes, the damning silence offered in their corporate crypt, is the devastating answer.
Another US nuclear marketing deal done ay COP27 – $3billion for Romania reactors project
The US Export–Import Bank said it intends to provide USD 3 billion for a project for two additional reactors in Romania’s Cernavodă nuclear power plant.
Romanian Prime Minister Nicolae Ciucă announced at the United Nations Climate Change Conference COP27 that a third of the required funds for units 3 and 4 in the Cernavodă nuclear power plant would be provided by the United States Export–Import Bank. The preparatory phase will be completed by the end of March, he said.
The US Exim Bank issued letters of intent for USD 50 million for the second phase and USD 3 billion for the construction of the two reactors, the prime minister revealed at the event in Egypt. The plan is to implement the second phase in the third quarter of 2025 and build the units in 2030, Ciucă said…….
The Cernavodă nuclear power plant operates under state-owned Nuclearelectrica. A contract was signed for the preparatory stage last November with Candu Energy, a subsidiary of SNC-Lavalin from Canada, through Romania’s project firm EnergoNuclear.
In addition, Nuclearelectrica intends to deploy US-based NuScale’s small modular reactor (SMR) technology for a 462 nuclear power plant on the site of a former coal plant.
German Parliament advised not to extend nuclear power beyond springtime 2023
Yesterday Claudia Kemfert, Professor of Energy Economics and Energy Policy
at the German Institute for Economic Research delivered an expert statement
to the German Parliament on why it is neither necessary, nor economical,
nor advisable, to extend German nuclear power beyond next spring. The focus
has to be squarely on renewables.
Radiation Free Lakeland 10th Nov 2022
Welsh Affairs Committee to hear from proponents of nuclear power, on funding plans for Sizewell C project
On 16th Nov, the Welsh Affairs Committee will quiz experts on whether
funding models are adequate to meet the UK Government’s targets to
generate 24GW of nuclear power by 2050. MPs will hear from Aviva Investors,
Sizewell C and the Nuclear Industry Association on the financing of new
nuclear projects covering the Regulated Asset Base model of funding, green
taxonomy and private investment.
They will also be discussing the
importance of the UK Government’s commitment to the nuclear sector and
public funding. The evidence session comes amid reports that the UK
Government is hoping to finalise a deal shortly on the funding of the
Sizewell C nuclear power plant.
Welsh Affairs Select Committee 10th Nov 2022
U.S. uses COP27 to market nuclear power to Romania, offering over $3 billion funding
Romania Secures $3 Bn US Funding For Nuclear Power
https://www.barrons.com/news/romania-secures-3-bn-us-funding-for-nuclear-power-01668020107 By AFP – Agence France Presse, November 9, 2022,
Romania announced Wednesday that the United States will provide funding worth more than $3 billion for the construction of two new nuclear reactors in the eastern European country, which is expected to commence early next year.
The funding will be granted by the Washington-based Export-Import Bank (EXIM), an export credit agency, enabling Romania to cover “about a third of the amount necessary for the construction of two reactors” at the Cernavoda plant, Romanian Prime Minister Nicolae Ciuca said.
The rest of the needed funding will come from other financing, Ciuca added, without giving further details.
Cernavoda is Romania’s only nuclear power plant, which has been operational since the 1990s. Two reactors with a total a capacity of 1,400 MW, it covers approximately one fifth of the country’s electricity needs.
Ciuca hailed the deal signed during the UN climate summit COP27 in Egypt as “an important step” towards the country’s “energy independence” amid global energy uncertainty aggravated by the war in Ukraine.
The construction of two additional nuclear reactors at Cernavoda is slated to start “in March/April 2023” and is expected to be completed in 2030, he added.
EXIM finances exports of US goods and services, but it was not immediately clear which US firm or firms would construct the reactors.
Six European companies — GDF Suez, Iberdrola, CEZ, RWE, Enel and ArcelorMittal — had initially committed to the project in 2008, before pulling out one after another due to uncertainties surrounding the future of the plant.
Bucharest also broke a financing agreement with the China General Nuclear Power Corporation (CGN) group in 2020, against a backdrop of growing mistrust of Chinese investments in Europe.
France electricity prices surge past €1,000/MWh as more nuclear reactors close for winter
Wholesale electricity prices in France for the middle of winter surged
above €1,000/MWh ($A1,540/MWh) after the operator of the world’s biggest
nuclear fleet revealed more problems, and more outages at its reactors.
The surge in prices for January delivery came after the utility EdF reduced its
forecast output for the fourth time this year, on this occasion due to
extended outages at four reactors and maintenance delays at others caused
by the waves of strikes that have affected the nation this autumn. It also
dramatically reversed weeks of falling spot and futures prices as gas
stocks improved and the weather remained wild.
But as analysts noted in the height of summer, nuclear problems pose just as big a threat to the EU grid
as the gas problems.
Renew Economy 8th Nov 2022
U.S. company Westinghouse wants to build a fleet of nuclear reactors in Europe, starting with Poland.
The Council of Ministers has formally approved the decision that the first
nuclear power plant in Poland will use three Westinghouse AP1000 reactors –
with the US company calling it an “historic day” as it looks to build a
fleet of the reactors in central Europe.
World Nuclear News 3rd Nov 2022
French nuclear corporation EDF – facing huge debts, but cosily enmeshed with UK government
But what about the future? EDF is predicted to stack up 100 billion Euros (£87.8 billion) in debt this year and the French government already pumped €3 billion (£2.6 billion) into the company in Spring.
But as you’ll see below, no matter how bad things are there’s always room to give the CEO a pay rise.
In 2020, CEO Lévy was listed as the 9th highest-paid CEO in the utility sector worldwide taking home a salary of €450,000 (£389,500) and €3,660 (£3,150) in benefits.
EDF has been getting cosier and cosier with the government.
And the cosiness isn’t set to end anytime soon, EDF stands in good stead under Liz Truss. The new PM nominated former EDF lobbyist Michael Stott as Downing Street’s new business liaison. Stott, who is also an ex-Tory press officer, is expected to lead the government’s new-build nuclear programme.
EDF: WHEN THE STATE GOES FULL CAPITALIST. https://newint.org/features/2022/10/31/edf-when-state-goes-full-capitalist 31 October 2022
What happens when a state energy company goes multinational? In the second installment of its Heat the Rich series on Britain’s big six energy giants, Corporate Watch puts the spotlight on EDF Energy.
EDF is the fifth biggest energy supplier in the UK currently controlling over 10% of the market. The French multinational is best known for “leading the UK’s nuclear renaissance” operating all eight of the UK’s nuclear power stations.
It’s owned by Electricity of France S.A. (Électricité de France, EDF). A multinational energy producer and supplier primarily (and soon to be solely) owned by the French government. It is one of the world’s top five utility companies.
Created in 1946 by the French government, EDF was set up with the intention of rebuilding France’s power grid following World War Two. Now, 70 years on, EDF has branched out a lot further than France, cashing in on energy users from the USA to India. The group is now made up of 144 subsidiaries.
Despite its name, EDF isn’t just in the energy business. EDF is also involved in the data software, vehicle traceability, investment, and real estate sectors, to name just a few.
EDF uses strategic partnership deals to build its brand, for example, the company is a ‘premium partner’ (and official energy supplier) for the Olympic and Paralympic Games in Paris in 2024.
HOW MANY UK ENERGY CUSTOMERS DOES EDF HAVE?
Electricity (excluding pre-payment): 3 million
Gas (excluding pre-payment): 2.1 million
WHO OWNS IT?
EDF Energy (UK) Ltd is ultimately owned by EDF SA, a French company which is majority owned (84%) by the French government and listed on Euronext, the French stock exchange.
In July 2022, the French government announced it would buy out the outstanding 16% of EDF’s shares, reversing the partial privatization of the company in 2005. But it hit a brick wall when investors threatened to sue the government for losses. The French state started finalising their buyout of 100% shares in EDF in September. But at what price? The other shareholders are demanding a fortune, with the government set to pay a total of 9.7 billion euros (£8.7 billion) of French taxpayers’ money. It’s worth noting that the shareholders set to cash in from this nationalization are investment giants Blackrock and Vanguard Group.
IS EDF SUFFERING AS A RESULT OF THE COST OF LIVING CRISIS?
On the face of it, it does seem like EDF profits have nose-dived in recent years. According to EDF Energy (UK) Ltd’s 2021 accounts, EDF operated a €4.8 billion (£4.2 billion) loss compared to €268 million (£239 million) in 2020. No dividends were paid by EDF Energy (UK) Ltd. in 2021 nor in 2020. However, another UK subsidiary, EDF Energy Holdings Ltd did pay dividends of £1 million in 2021, and £60 million in 2020.
Despite these losses, at the end of 2021 EDF Energy (UK) Ltd still had net assets of €17.9 billion (£16 billion).
Regardless of the UK subsidiary’s accounts, the EDF Group achieved all its financial targets in 2021. Group sales for the year amounted to £8,720m, an increase of 8%. The Group reaped profits of €360 million (£324 million) in 2021, a total reverse in performance from 2020 when the Group made a loss of €2.6 billion (£2.3 billion).
But what about the future? EDF is predicted to stack up 100 billion Euros (£87.8 billion) in debt this year and the French government already pumped €3 billion (£2.6 billion) into the company in Spring. But as you’ll see below, no matter how bad things are there’s always room to give the CEO a pay rise.
WHO RUNS EDF?
Jean-Bernard Lévy, the current CEO of the Group, is due to leave six months early after a fallout at the top between Lévy and French president, Emmanuel Macron, over nuclear energy. Lévy is – however – unlikely to be out of a job after EDF. He was formerly CEO of weapons company Thales, and media company Vivendi, and even did a stint as a technical adviser to a government ministry. In 2020, Lévy was listed as the 9th highest-paid CEO in the utility sector worldwide taking home a salary of €450,000 (£389,500) and €3,660 (£3,150) in benefits.
Moreover, Lévy’s probable successor, Luc Remont, cherrypicked by Macron (whose appointment is just waiting for parliamentary approval), will start on on a lucrative footing after the French Government announced that it would like to increase the new EDF CEO’s salary to attract more candidates. The company CEO’s salary is currently capped at €450,000 (£389,500). Whilst no figure has been publicly stated, the EDF Group is known to pay high salaries. In 2013 it was revealed that former UK CEO, Vincent de Rivaz, received a pay package of £1 million annually in remuneration.
Simone Rossi has been at EDF since 2004, Rossi switched roles from Head of the International Division to UK CEO in 2017. But Rossi’s influence goes far beyond the British Isles. As a member of the Executive Committee, Rossi is at the very top of the EDF Group. At first it appears Rossi accepted a big pay cut, with a 2017 payment package capped at just over £100,000. A modest salary in comparison to his predecessor, de Rivaz, who was on £1 million a year. But it is highly probable that Rossi’s remuneration is now identical to de Rivaz at £1 million, as the highest-paid director in EDF Energy Holdings Ltd.
EDF
It’s not just customers at the receiving end of EDF’s profit-led strategy. Kashmir Singh, a Prospect trade union organizer, has been fighting against workplace racism and discrimination for half a century. Singh was presented with a 50-year long-service award in 2021 by Simone Rossi. But Singh’s union released a statement explaining how, during his career, he had been subject to two grievance and disciplinary proceedings for daring to raise EDF’s failure to hire and promote staff from Asian or Black Ethnic (ABLE) backgrounds.
SUBSIDIARIES IN TAX HAVENS
EDF Energy (UK) Ltd owns EDF Energy Holdings Ltd, the top holding company for EDF’s UK subsidiaries. Whilst EDF Energy (UK)’s accounts from 2021 detail tax payments of €905m (£780m) of corporation tax in 2021, some of its subsidiaries are registered in notorious tax havens including a holdings company registered in Hong Kong and an insurance company in Guernsey.
Over the last two decades, EDF has funded the Conservative party to the tune of £38,499.
Most recently, last October EDF Energy Renewables Ltd donated £4,999 to the Conservative Tees Valley Mayor, Ben Houchen. And like clockwork, by March 2022, EDF announced its plan to construct a new hydrogen production centre near the former Redcar steelworks in Teeside. The centre is called Tees Green Hydrogen.
EDF also made two £6,000 in donations to the Labour Party in October 2003 and September 2005. The timing of these donations coincided with Labour PM Tony Blair’s announcement in November 2005 that the government was looking into new nuclear for the UK’s future energy supplies. This set the ball rolling for EDF’s £18 billion government contract for the construction of Hinkley Point C power station.
Over the last decade, EDF has been getting cosier and cosier with the government. The company has had at least five independent opportunities to promote its agenda in meetings with UK prime ministers, once with David Cameron and four times with Boris Johnson. Company representatives even had an intimate one-to-one with Johnson in January 2022 to chat about the UK’s nuclear energy supply, which EDF holds the monopoly over.
Since 2012, company representatives have also attended at least 151 meetings with government ministers, including 24 solo meetings with the former Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, who is now the Chancellor of the Exchequer, the person in charge of UK economic policy.
And the cosiness isn’t set to end anytime soon, EDF stands in good stead under Liz Truss. The new PM nominated former EDF lobbyist Michael Stott as Downing Street’s new business liaison. Stott, who is also an ex-Tory press officer, is expected to lead the government’s new-build nuclear programme.
Failure of the “nuclear renaissance” leaves Britain with super-costly closures of reactors, and electricity shortage
UK facing electricity supply woes after nuclear power stations shut, MPs told
Larger and smaller reactors carry risks, island nation failed to keep pace with nuclear fleet closure
Lindsay Clark, 1 Nov 2022 , Electricity shortages appear inevitable for the UK due to the decommissioning of the nation’s aging estate of nuclear power stations, according to evidence submitted by industry to politicians.
…….. Writing to the Commons Science and Technology Committee, Manchester University’s Dalton Nuclear Policy Group said: “Sadly, it is now much too late to avoid a negative impact on the UK’s electricity supply due to the closure of our nuclear fleet. All eleven of Britain’s Magnox plants have been shut down for many years – the last being the Wylfa plant on Anglesey which ceased operation on New Year’s Eve 2015.
It added: “The fleet of Advanced Gas-cooled Reactors (AGRs) operated by [French energy firm] EDF is also now seeing closures.”
In February, the UK government was warned taxpayers would have to make up a multibillion-pound shortfall to decommission nuclear power stations unless a history of overspending is reversed. EDF Energy runs seven AGR stations in the UK, part of eight second-generation reactors set to be decommissioned which provide 16 percent of the nation’s electricity. The AGR stations are scheduled to stop producing electricity by 2028.
Last year the government injected £5.1 billion ($5.8 billion) into the Nuclear Liabilities Fund – now valued at £14.8 billion ($17 billion) – which it set up in 1996 to meet the costs of decommissioning AGR and Pressurized Water Reactor stations. But EDF’s latest cost estimate to decommission the stations in March last year was £23.5bn ($27 billion). Public spending watchdog the National Audit Office has warned more money will be needed unless the government and EDF avoid overspending.
But as well as overspending, decommissioning also presents a problem for electricity supply.
“It is unlikely that there will be any significant extension to these projected dates, although there may be scope for some slight delays in closure. Once the AGRs are all closed, the UK will only have one reactor from the current nuclear fleet still operational – the pressurised water reactor at Sizewell B,” Dalton Nuclear Policy Group said.
……. “it is due to the failure since 2008 – with the exception of the long-delayed Hinkley Point C – of all proposals for a nuclear renaissance in the UK to move from plans to reality,” the group said.
In May, EDF admitted to another year’s delay and £3 billion ($3.5 billion) extra cost in Hinkely Point C – the UK’s first nuclear power station to be built in 20 years. The revised operating date for the site in Somerset is now June 2027 and total costs are estimated to be in the range of £25 billion to £26 billion ($29 billion).
EDF said it would have no cost impact on British consumers or taxpayers. The power station had been due online by 2017 at a cost of around £20 billion ($22 billion)………………….. The Science and Technology Committee is set to hear oral evidence for its inquiry on Delivering Nuclear Power during hearings this week.
The Register 1st Nov 2022
https://www.theregister.com/2022/11/01/electricity_shortages_uk/
Nice work if you can get it: £750 a day for leading Lincolnshire’s nuclear dump bid
A typical employee working full-time in the East Lindsay Council area can
expect to be paid just over £90 per day, according to the latest
government survey of earnings. With the 2022 Annual Survey of Hours and
Earnings reporting that median earnings in the district are just £462.50
per week, many local workers will be envious upon hearing that the Interim
Chair of the Theddlethorpe GDF Community Partnership continues to be paid
£750 per day for his work leading the bid to bring an unwanted nuclear
waste dump to the Lincolnshire coast. The revelation was contained in a
response from Nuclear Waste Services (NWS) to a recent Freedom of
Information Act request about the ongoing renumeration of Mr Jon Collins
made by the Nuclear Free Local Authorities (NFLA).
NFLA 2nd Nov 2022
Sizewell C nuclear station to be funded 20% by French taxpayers, and 20% by British taxpayers.
French government officials have officially approved the involvement of
state-owned company EDF in the development of Britain’s Sizewell C nuclear
power plant, Boris Johnson’s last flagship program as Prime Minister. I can
reveal. In his last keynote address as Prime Minister, Mr Johnson had urged
his successors to “go nuclear and go big and go with Sizewell C”.
While questions remain about how the project will be funded, with I After
previously revealing how it has approached investors in the UAE, Australia
and Saudi Arabia for financial backing, the UK has now secured the full
backing of French officials – a big step forward for the plant. The UK is
expected to plan a 20 per cent stake in Sizewell C, with EDF taking a
further 20 per cent – leaving 60 per cent of the project dependent on
investors.
UK Daily News 28th Oct 2022
French nuclear power group EDF to have a bigger loss than previously expected
French nuclear power group EDF is expecting a hit of around 32 billion
euro ($32.18 billion) to its full-year core earnings from lower nuclear
production, a bigger loss than previously forecast and its sixth profit
warning this year.
The French government, which already owns 84% of EDF, is
in the process of fully re-nationalising the company, the debt-laden
operator of Europe’s largest fleet of nuclear power plants.
Reuters 27th Oct 2022
https://www.reuters.com/business/energy/french-utility-giant-edfs-history-2022-07-08/
USA’s Westingouse likely to build and fund 49% of Poland’s first nuclear power station
Poland is likely to choose the United States engineering firm Westinghouse
Electric to build its first nuclear power plant and provide 49% equity
financing for the project. State-owned Korea Hydro Nuclear Power (KHNP) may
also be involved in a separate and parallel private nuclear project, Polish
Deputy Prime Minister Jacek Sasin said earlier this week. Warsaw has also
been talking to France’s state-owned EdF utility which has built and
operates the country’s nuclear power plants. After years of shelved plans
to build a civil nuclear capacity in Poland from scratch, the energy crunch
caused by the war in Ukraine, lower gas supplies from Russia and lack of
immediate renewable substitutes, have kicked the issue back up the
political agenda.
Deutsche Welle 28th Oct 2022
https://www.dw.com/en/us-south-korean-firms-to-operate-nuclear-plants-in-poland/a-63576093
Scotland ‘could fund England’s nuclear plants after independence’ under “regulated asset base” (RAB) model
the RAB model was favoured by the Tory government because “the fact is the market has fled nuclear”.
“The market has fled nuclear because of the risk and liability. The only way of getting nuclear through is with vast public subsidy, and this is a way of disguising that public subsidy.
the RAB model had been tried before in the US – under the name Early Cost Recovery – “and failed miserably”.
And that public money would come at the very start of construction. They would be paying right from the word go, so this is essentially free money. Even with that there really doesn’t seem to be much interest from the market.”
SCOTTISH bill payers could still be funding nuclear projects south of the Border through additional fees on their energy bills even after independence, one expert has said.
It comes as the UK Government looks to award the first contracts for new nuclear stations in England, which will be funded through the “regulated asset base” (RAB) model.
This RAB model will see electricity suppliers pay a levy to “relevant licensee nuclear companies”, with the costs passed on to consumers in the form of additional fees on top of their energy bills. Under conservative UK Government estimates, this could mean Scottish households’ energy bills rising by around £100 a year.
Dr Paul Dorfman, the chair of the non-profit Nuclear Consulting Group and associate fellow at the University of Sussex’s Science Policy Research Unit, told The National that the RAB model was favoured by the Tory government because “the fact is the market has fled nuclear”.
“RAB is absolutely, unequivocally all about trying to incentivise the market,” he said, “and it is doing it with public money.”
Dorfman went on: “And that public money would come at the very start of construction. They would be paying right from the word go, so this is essentially free money. Even with that there really doesn’t seem to be much interest from the market.”
The nuclear expert, who will give evidence on the topic to a Westminster committee next week, said the RAB model had been tried before in the US – under the name Early Cost Recovery – “and failed miserably”.
He said: “It can work for projects which you know will come in on time, but nuclear has huge liabilities and huge over-runs, and that’s precisely why it doesn’t work. RAB doesn’t work for projects with high liability and high risk.
“The market has fled nuclear because of the risk and liability. The only way of getting nuclear through is with vast public subsidy, and this is a way of disguising that public subsidy.
Dorfman warned that once the UK Government started sinking billions of pounds into efforts to begin construction of eight new nuclear stations by 2030, it would “become a fait accompli”.
He said that even after 17 years – the amount of time he estimates it will take from a contract being awarded to a nuclear plant being finished – “the UK public, and the Scots public, who may no longer be part of the UK, will still be liable for that”.
Dorfman said the first RAB nuclear contracts looked set to be awarded in 2023, estimating that would mean a completion date of the first nuclear plants around 2040.
“That’s too late for our climate,” he said. “It’s far too late for the current energy crisis. The point is of course, why do this when last year solar and wind made up three-quarters of all total new electricity generation capacity installed worldwide?”
“
The Nuclear Consulting Group chair further cautioned that no one knows for certain what the RAB funding arrangements will be.
Craig Dalzell, the head of policy and research at Common Weal, a think tank which has recently produced a report on the RAB funding model, said the “ongoing liability” for new nuclear projects in England should “not be outsourced to Scotland post-independence”.
Dalzell told The National: “The idea that Scottish energy users could be paying for the UK’s nuclear RAB schemes even after independence will surely be something that should be resisted. The Scottish Government should do everything it can to extract guarantees from the UK Government that this will not be the case and that the ongoing liability for these plants will not be outsourced to Scotland post-independence.
“At the very least, any payments for these plants should be taken into account when the time comes for independence negotiations and I would expect these charges to be offset against other debts or added to an equivalent payment from the remaining UK to Scotland to compensate for their mismanagement of energy policy.”
The UK Government’s Department for Business, Energy and Industrial Strategy declined to comment, saying only that its policy has not changed despite a new Secretary of State, Grant Shapps, taking control.
You can read Dr Dorfman’s written evidence on nuclear power to the House of Commons’ Science and Technology Committee here.
1 This Month
of the week– Nuclear Reactor Information Task Force
14 May – online event From Bombs to Data Centres: the Face of Nuclear Colonialism
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