German government to compensate utilities over the phaseout of nuclear power
Germany To Compensate RWE & Vattenfall Over Nuclear Phase-Out, Clean Technica, 25 May 18 The German Government has passed a bill that gives the country the legal right to proceed with its phase-out of nuclear power but will open the door to companies like Vattenfall and RWE to receive compensation for their investment into nuclear power plants.
Following the 2011 Fukushima nuclear disaster in Japan, Germany made the unprecedented decision to close down all its nuclear power plants — the oldest eight power plants were closed immediately, while the remaining nine are scheduled to be turned off by 2022.
“A decision has been taken to shut down eight plants before the end of this year and they definitely won’t be reactivated. And the remaining nine will be shut down by the end of the decade,” Juergen Becker, deputy environment minister at the time, told Reuters. “Japan has shown that even if there is a minuscule occurrence, the residual risk is too high to justify the continuation of nuclear power (…) It is better to go for other energy services in a civilized country.”
In response, German utility RWE and Swedish power company Vattenfall sued the German government, arguing that they were due financial compensation for investing in a technology that, at the time, the German government was supporting, and that in suddenly reversing direction, the companies would suffer significant financial losses.
In December of 2016, the German Federal Constitutional Court confirmed that the government’s decision to phase-out nuclear power was “essentially constitutional.” This week, the German Federal Government approved a bill which implemented the findings of the Court, giving the country the right to proceed with its phase-out but also allowing utilities to seek “adequate financial compensation for so-called frustrated investments they made in nuclear power plants between 28 October 2010 and 16 March 2011.”
“The bill passed today ensures that the accelerated phasing out of nuclear power plants, which was initiated in 2011, will be continued consistently and in accordance with the provisions of the Basic Law,” said Federal Environment Minister Svenja Schulze. “Each nuclear power plant will retain its current statutory cut-off date by 31 December 2022 at the latest of nuclear energy in Germany.” …….. https://cleantechnica.com/2018/05/25/germany-to-compensate-rwe-vattenfall-over-nuclear-phase-out/
UK short of funds for its £51bn nuclear defence programme
Nuclear defence programme to cost £51bn over next decade National Audit Office predicts total spending and warns of £2.9bn shortfall, Ft.com Peggy Hollinger, Industry Editor
The cost of building and maintaining the UK’s nuclear defence programme will add up to £50.8bn over the next 10 years, the UK’s public spending watchdog has said. The National Audit Office predicted a £2.9bn shortfall on the programme in that period, assuming the Ministry of Defence delivers the cost-cutting it has promised. The assessment is the first time the NAO has looked at the cost of the entire network of programmes, equipment and people needed for the UK’s nuclear deterrent between 2018 and 2028. As well as itemising completion of the current Astute submarines, the report looks at the costs of building the new Dreadnought class that will eventually replace the four Vanguard nuclear-armed boats from the early 2030s. The report showed that the top four suppliers — Rolls-Royce, BAE Systems, Babcock International and AWE Management — have won 97 per cent of contracts for nuclear defence………..https://www.ft.com/content/08d19194-5d0e-11e8-ad91-e01af256df68
USA Congress rejects move to limit new low-yield nuclear weapon.
House rejects limit on new nuclear warhead, Defense News , , 24 May 18, WASHINGTON — The U.S. House on Wednesday shot down a proposed limit on the Trump administration’s pursuit of a low-yield nuclear weapon.
Trump’s reckless propping up of the nuclear industry pleases its big lobbyists
Trump has Plenty of Accomplices in his Reckless Energy Policies http://progressive.org/dispatches/trump-has-plenty-of-accomplices-in-his-reckless-energy-polic/, by Harvey Wasserman, May 24, 2018
Some 360,000 Americans now work in the solar industry, more than in nukes and coal combined. In fact, more Americans are now working in California’s solar industry than are digging coal nationwide. And the U.S. wind business now employs more than 100,000 people.
But President Donald Trump wants to change that. He has already slammed the solar industry’s growth by slapping a 30 percent tariff on imported Chinese panels, slowing installations nationwide.
He’s also contemplating using an obscure Korean War-era “emergency” ordinance that would let the government bail out money-losing coal and nuclear plants at the expense of renewables.
The idea was presented to Trump while he dined with a lobbyist from the infamous Akron-based FirstEnergy, whose bad business decisions have hung it with four crumbling, money-losing nuclear power reactors and some eighty obsolete coal burners.
More than half the nation’s ninety-nine licensed commercial reactors are now losing money. FirstEnergy’s Davis-Besse, near Toledo, Ohio; Perry, east of Cleveland, Ohio, and Beaver Valley 1 & 2, outside Pittsburgh, Pennsylvania, are bleeding radioactive red ink. One might expect “free market” corporate executives to cut their losses and let competition determine how our energy will be generated.
But FirstEnergy CEO Chuck Jones (annual salary: $8.7 million) has begged Ohio’s legislature and regulators to slap consumers with billions in higher electric rates. So far he’s failed, which is why he sent his lobbyist to dine with Trump.
Already, governments are doing what they can to prop up the nuclear power and fossil-fuel industries and damage the cause of renewable power.
Three nuclear reactors in Illinois have been granted a $200 million annual handout for the next decade. Pennsylvania and Connecticut may soon get soaked with massive rate hikes to keep reactors running there.
The New Jersey legislature has just approved spending $430 million over the next decade to run three more uneconomical reactors there, two at Salem and one at Hope Creek. Activists including actor Alec Baldwin have urged that state’s new Democratic governor to veto that proposal.
Throughout the United States, owners of even those few reactors that are still making money are poised to scam their way into compliant legislatures to see how much they can grab.
But the biggest nuke scam of all has been rammed through state regulatory agencies by New York’s “liberal” Governor Andrew Cuomo. Cuomo backs the 2021 shutdown of two decrepit reactors at Indian Point, saying they are too close to Manhattan to be considered safe.
But Cuomo wants ratepayers statewide to cough up a staggering $7.6 billion for four upstate reactors whose owners had them slated for decommissioning. To the astonishment of economists, ecologists, business and ratepayer groups, Cuomo’s hand-picked regulators approved the rip-off last year.
Nuclear opponents have gone to court to stop it. They argue that while less than four thousand jobs are tied to the reactors, many thousands more would be created by replacement wind and solar projects.
FirstEnergy’s scam is even more brazen. According to the Nuclear Energy Institute, the average reactor generally employs between four hundred and seven hundred workers. Some workers stay on long after shutdown to deal with issues of decommissioning and waste management.
But along with bailing out its four dying nukes, FirstEnergy wants a staggering $8 billion per year in above-market ratepayer fees for some 80 coal burners.
Rightwing think tanks like Heritage have joined financial and business groups in warning such rate hikes could decimate the area’s economy.
Meanwhile, a bitterly disputed “set-back” law has stopped some $4.2 billion in proposed wind projects along Ohio’s “north coast,” which is flat, windy, well-wired and full of farmers desperate for the projects to begin. But repeal has stalled, with tens of thousands of jobs and billions in income hanging in limbo.
They’ll all disappear if Trump and Energy Secretary Rick Perry approve FirstEnergy’s “emergency” bailout.
Last September, the Trump Administration approved another $3.7 billion in federal loans, on top $8.3 billion approved in the past, to sustain a scandal-ridden nuclear project in Vogtle, Georgia.
More recently, on May 10, Congress passed a new attempt to open the proposed Yucca Mountain waste dump. The plan to store some 70,000 tons of high-level commercial radwaste in an earthquake-riddled dormant volcano is overwhelmingly opposed by Nevadans and had long since been written off. But the measure was approved by a vote of 206 to 179, with ninety-four Democrats and eighty-five Republicans voting against. It now heads to the Senate.
As all of this plays out, tens of thousands of jobs hang in the balance. The nation’s entrenched fossil-nuclear corporate elites are more focused on propping up the industries of the past than embracing the technologies of the future.
Harvey Wasserman’s radio shows appear at prn.fm and KPFK-Pacifica, 90.7FM, Los Angeles. His America at the Brink of Rebirth: The Life & Death Spiral of US History from Deganawidah to the Donald will soon be published at Solartopia.org.
Ontario NDP only party speaking out against nuclear waste bunker near Lake Huron
Global News, The Canadian Press 24 May 18, TORONTO — Of the three main parties vying for office in Ontario’s spring election, only the NDP has spoken out against building a $2.4-billion nuclear waste bunker near Lake Huron.
Trump’s lawyer Cohen opens doors for Alabama nuclear developer Haney
By Kyle Whitmire kwhitmire@al.com “……Franklin Haney is a very rich man, and his money is hard at work in Alabama, in Washington, D.C., and maybe even the Middle East. The Chattanooga developer’s campaign cash has given him access to politicians from city council members to presidents of the United States.
And now, according to the Wall Street Journal, he has the help of President Donald Trump’s personal lawyer and political fixer, Michael Cohen, with designs on bringing online a nuclear power plant in northeast Alabama.
Two years ago, when I first wrote about Haney’s dream to buy a half-finished nuclear power plant in north Alabama and bring it online, I didn’t take his plans seriously for a couple of reasons.
Even if Haney could convince TVA to sell him the Bellefonte plant, even he — a billionaire — probably couldn’t afford to finish it, could he? Haney’s own projection was that the project would cost about $13 billion to complete. By most accounts, including Haney’s company’s website, he is worth less than that.
And even if he managed to finish it, there was no way the federal government would allow him to turn the thing on, would they?
The logistics and regulation of nuclear power make it nearly impossible to stop a project and then restart it again, which was a big reason the TVA never finished the job.
I wasn’t alone in that assessment.
Stephen Smith, the executive director of the Southern Alliance for Clean Energy, said then that Haney’s plans for Bellefonte were delusional.
“The first concrete was poured in 1974,” he said. “That reactor is approaching 50 years old. Do you think the Nuclear Regulatory Commission is going give a license for a reactor that has been sitting around for 50 years?”
But Haney didn’t give up.
Once a door-to-door Bible salesman, Haney became a self-made billionaire through working as the government’s landlord. He acquires and develops property, which he leases to local, state and federal agencies.
And he makes connections first with political donations. He’s donated to Democrats and Republicans. Bill Clinton and Barack Obama have benefited from his largess, as have Republicans, including Alabama Gov. Bob Riley………
TVA agreed to sell the power plant to Haney, but he still had those two hurdles left — regulation and capital.
Enter Donald Trump.
After the president’s victory in 2016, Haney donated $1 million to Trump’s inaugural fund, and last summer Bloomberg reported that Haney had bragged about dining with Trump about a dozen times during the president’s first six months in office. Haney could have had those opportunities because he’s a member of Trump’s club, Mar-a-Lago.
And it turns out, the Wall Street Journal reports, Haney had another connection, too. He is a client of Michael Cohen, Trump’s personal lawyer and political fixer, who appears to have turned his proximity to the president into a lucrative business opportunity.
According to the Journal, Haney hired Cohen to help him solicit investments for the Bellefonte project, and in April, the two met in Miami with Sheikh Ahmed bin Jassim bin Mohammed al-Thani, the minister of economy and commerce of Qatar and the vice chairman of the Qatar Investment Authority.
Previously, Cohen had solicited $1 million from Qatar for access to the Trump administration, the Washington Post reported last month. The Qatar government declined that solicitation.
It’s unclear whether the meeting was fruitful for Haney, but what is clear is that the law might not allow significant foreign investment in the Bellefonte project. Under the Atomic Energy Act, the NRC may not issue licenses for projects owned or controlled by a foreign entity.
But laws change, especially when men with money need them fixed, and if the Trump administration has shown anything, it’s that it cares little about regulations, environmental protections and foreign influence in domestic affairs.
Haney’s hurdles are still high. They are still there. But his money is working harder than ever to tear them down.
And anyone who cares about the safety of northeast Alabama should take him very seriously. https://www.al.com/opinion/index.ssf/2018/05/cohen_opens_doors_for_alabama.html
Many years before massive nuclear power station could be built at Bradwell, UK
Maldon Standard 23rd May 2018 , THE site of the new nuclear power station at Bradwell is staggering in
size. Measuring the length of six football pitches, it sits on land near to
the existing station, now being decommissioned. The Standard was given
exclusive access to see how work was progressing at Bradwell B. EDF Energy
and the China General Nuclear Power Group have been carrying out early site
investigations into the site since December. Since then, the company has
been drilling and digging sampling holes and testing the soil. While work
is underway, the project is still very much in the beginning stage. Once
all groundwork is complete proposals for what the new power station could
look like will be drawn up. Then, a huge public consultation will be held,
alongside a generic design assessment, environmental assessment, and
nuclear site licence being sought. In short, we are many years away from
any station being built.
http://www.maldonandburnhamstandard.co.uk/news/16242529.Digging_deep__A_look_into_the_site_for_a_new_nuclear_power_station_in_Bradwell/
Huge corporate subsidy to be given by New Jersey Governor to nuclear industry
New Jersey Governor Plans to Sign Nuclear Bailout Bill, Bloomberg, By Elise Young and Brian Eckhouse
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Bill seen costing customers more than $300 million a year
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Exelon, Public Service Enterprise Group own reactors in state
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New Jersey Governor Phil Murphy plans to sign a bill requiring utility customers to spend more than $300 million a year to rescue struggling nuclear power plants run by Exelon Corp. and Public Service Enterprise Group Inc., according to a person familiar with the matter.
The legislation, approved in April by the state’s Democratic legislature, aims to keep the state’s three nuclear plants operating, after owners warned the facilities were no longer economic amid lower power prices.
Murphy, a Democrat who was sworn-in in January, has not said publicly if he supports the measure, which some environmentalists oppose. A schedule released by his office Tuesday said he planned to sign “energy bills” at 11 a.m. Wednesday.
…….. Exelon and PSEG didn’t immediately comment. A spokesman for the Electric Power Supply Association, which represents independent power producers and has opposed subsidies for coal and nuclear plants, called the move “disconcerting.”“If news reports are true that Governor Murphy will sign the nuclear bailout legislation without seeking amendments, it is a sad day for New Jersey consumers and the future of competition in the state,” John Shelk, president of the Washington-based association, said in an email.
- ……. The Sierra Club is one of several environmental groups that have criticized the plan, calling it the “biggest corporate subsidy in state history.”https://www.bloomberg.com/news/articles/2018-05-22/new-jersey-governor-is-said-to-plan-to-sign-nuclear-bailout-bill
Call to White House to oppose Saudi Arabia’s threat to acquire nuclear weapons
White House Should State Opposition to Saudi Threat to Acquire Nuclear Weapons http://www.ipsnews.net/2018/05/white-house-state-opposition-saudi-threat-acquire-nuclear-weapons/
Japanese government’s inflexibility in keeping its nuclear power goals, despite the global transition to renewables

Gov’t energy plan inflexibility on nuclear, renewables reveals lack of vision
In that three years, conditions surrounding energy production have changed drastically both inside and outside Japan, so it is very difficult to understand why the government has chosen to simply maintain course.
The energy plan calls for 20-22 percent of Japan’s energy mix to be made up of nuclear power in 2030, with renewables accounting for 22-24 percent — just as the 2015 version did. However, while Japan has been marking time, other advanced nations have been moving fast to expand solar and other renewable power generation. The reason is simple: measures to combat global warming simply cannot wait.
…….Renewable energy already makes up about 15 percent of Japan’s electricity production. The big utilities have also been expanding their renewable generation base as electricity market liberalization has spurred competition. Keeping the 2030 renewables target as-is could discourage this trend.
We must also question the continuing role projected for nuclear power. Around 30 reactors would be required to fill 20-22 percent of Japan’s energy needs as laid out in the plan, but only eight are now back in operation following the shutdowns after the triple-meltdown at the Fukushima No. 1 nuclear plant.
Serious questions are being raised over the economic viability of nuclear plants, as is shown by the fact that Kansai Electric Power Co. decided last year to decommission two of its larger reactors. Even experts are shaking their heads in doubt at the energy plan’s targets for nuclear power generation……..https://mainichi.jp/english/articles/20180519/p2a/00m/0na/016000c
Hitachi’s nuclear export transfers risks to both Japanese and British people while companies get profits
Urgent Joint Statement: Hitachi’s nuclear export transfers risks to both Japanese and British people while companies get profits http://www.foejapan.org/en/energy/doc/180502.html
Hitachi’s Chairman Nakanishi is reportedly going to visit British Prime Minister Teresa May on 3rd May to ask the U.K. government to take a direct stake in Wylfa Newydd nuclear power project in Anglesey, Wales. The report says Hitachi is going to ask not only for direct investment but also an assurance for a power purchase agreement(1). Hitachi’s struggle just shows the risks of the nuclear power project is simply huge.
In February, Mr. Nakanishi already expressed the view that the project would not happen without government commitment and stated “Both UK and Japanese governments understand that the project would not go on without the commitment by the governments”(2). To reduce the risk of the project, the project is said to be insured by Nippon Export and Investment Insurance(NEXI), 100 percent Japanese government owned export credit agency(3).
In addition to huge construction cost, nuclear projects are associated with various risks such as accidents, increased cost for tougher regulations, opposition from local people, radioactive waste management and so on. Risks are too huge to manage. Thus, it is clear that companies should decide to retreat from the project. While transferring risks of the project to people, it is unacceptable that the companies and banks take profits.
Electricity generated from Hinkley Point C nuclear power, which is currently under construction in UK will be purchased at £92.5/MWh, which is approximately twice as expensive as the average market price. National Audit Office of UK warned that this would increase ratepayers burden (4). If UK government gives an assurance for expensive price of electricity to Hitachi, the project will put more burden not only Japanese taxpayers with huge risks, but also British ratepayers with huge costs. For whose sake is this project?
The project site for Wylfa Newydd is surrounded by pristine nature. Colonies of protected bird such as Arctic terns was discovered near the site(5). The National Welsh Coastal Path borders the land bought by Hitachi which is in an area of Otstanding Natural Beauty. The project would put a heavy burden on the social and economic infrastructure on the island rather than benefitting the local economy(6) .
“Don’t pour good money in to the bottomless black hole of nuclear power. This is an old fashioned, dirty, dangerous and extortionately expensive technology. The Fukushima triple explosions and meltdowns has and will continue to cost the people of Japan greatly. There is no end in sight for this continuing tragedy, which means that no new nuclear reactors are going to be built in Japan. It is unacceptable that Japan wish to export this deadly technology to another state in order to keep Japan in the nuclear club.”
TEPCO’s Fukushima Daiichi nuclear accident is not over. Globally the cost of renewable energy decreases dramatically and energy efficiency is also improved. Exporting nuclear power is against that trend. This is morally and economically the wrong direction. Moreover, pouring public money to a handful of private companies without consulting the public or having discussion at a parliament is unacceptable.
Japanese government and companies should seek and promote nuclear phase out and sustainable and democratic energy systems based on thorough reflection on the lessons learned from the nuclear accident. We strongly oppose Hitachi’s Wylfa Newydd project. No money from Japanese and British taxpayers should be used to save this totally outdated and dangerously wasteful project.
1. “Hitachi seeks assurance from UK’s May on shared stake in nuclear project” Nikkei Asia Review, 29th April 2018.
2. ”Committements by both UK and Japanese government necessary fro Hitachi’s nuclear project, says next chair of Keidanren” (In Japanese) Reuters, 13th Feb 2018.
3.“Japanese and UK government to support Hitachi’s nuclear project, loss may result in public financial burden (in Japanese)” Asahi Shimbun, 11th Jan 2018.
4. “Hinkley Point C” National Audit Office, 23th June 2017
5.“Plans for Welsh nuclear power plant delayed by concerns over seabirds” Guardian, 9th Apr 2018.
6.“Wylfa Newydd: Nuclear plant ‘increases homelessness risk’” BBC, 27th Mar 2018.
Contact:
Friends of the Earth Japan
fukakusa@foejapan.org
+81-3-6909-5983
Ayumi Fukakusa
People Against Wylfa B
pawbcymru@gmail.com
Dylan Morgan
Uncertainty about China’s nuclear power future
“……….Uncertainties for Nuclear Power, Carnegie Endowment, Mark Hibbs, 14 MAY 18
China’s nuclear power wager might not indefinitely pay high dividends. Until now, the state has boosted the nuclear power industry with incentives that, in the future, may come under pressure. The electric power system is subject to reform in the direction of more transparent oversight and pricing that might disadvantage nuclear investments. President Xi Jinping supports state control of strategic economic sectors, but he also advocates market reforms that have helped lead Western nuclear power industries into crises.
The nuclear sector must withstand what Xi calls “new normal” conditions: a gradual slowing down of China’s economy, characterized by diminishing returns on capital goods investments and translating into rising debt and overcapacity. Nuclear investments may be affected by demographics, changes in electricity load profile, and technology innovations including emergence of a countrywide grid system able to wheel bulk power anywhere.
There is also political risk. Public support for nuclear power in China is volatile and may be low. Concerns since the Fukushima Daiichi accident in Japan have prompted Beijing not to proceed with long-established plans to build most of China’s future nuclear plants on inland sites. Should this policy continue into the 2020s, prospects for China’s nuclear construction sector will decline; indefinitely continuing nuclear construction at eastern coastal sites (where nearly all of China’s nuclear power is generated) may encounter resistance on economic, capacity, and political grounds.
Under Xi, China’s globalization continues but the state is assuming ever-greater liability. Political decisionmaking and corporate culture may not support an indefinite increase in the risk presented by more nuclear power investments. Some quasi-official projections before Fukushima that China by 2050 might have 400 or more nuclear power plants have been cut in half. Beijing’s risk calculus may reflect that China’s population would blame the Communist Party and the state for a severe nuclear accident. In a country with a patchy track record for industrial safety, said one Chinese planning expert in 2016, “The more reactors we have, the greater our liability.”
…….. If China merely replicates others’ collective past experience, it will reinforce the view that fast reactors and their fuel cycles are too risky, complex, and expensive to generate large amounts of electricity.
- If China merely replicates others’ collective past experience, it will reinforce the view that fast reactors and their fuel cycles are too risky, complex, and expensive to generate large amounts of electricity.
- ……. ……..Whether China succeeds or fails, the global repercussions will be significant. …..https://carnegieendowment.org/2018/05/14/future-of-nuclear-power-in-china-pub-76311
Ballot initiative could shut down Phoenix-area nuclear plant
Santa Fe New Mexican, By Faith Miller | Cronkite News, May 19, 2018 “……. If the Clean Energy for a Healthy Arizona initiative appears on the ballot in November, voters will decide the plant’s future. The initiative calls for 50 percent of Arizona’s electrical energy to come from renewable sources, mostly solar and wind, by 2030. Nuclear power would be hit hardest among sources of power in Arizona, because Palo Verde — the nation’s largest power producer — could not operate at levels low enough to satisfy the initiative’s requirements.
UK Nuclear Subsidies – We Told You So – Hinkley Point C
Ten years ago Steve Thomas, Professor of Energy Policy at Greenwich University predicted that nuclear companies would eventually insist on receiving subsidies to build new reactors, and the government would be forced to drop its refusal to give subsidies or abandon its nuclear ambitions. Regrettably his prediction has come true. (1)
Hitachi Chairman Hiroaki Nakanishi had a face-to-face with Prime Minister Theresa May earlier this month, and according to the Japanese media the UK government has offered to shoulder 2 trillion yen (£13.3 billion) in loans and other means to cover a huge portion of the cost of new reactors at Wylfa. Whether that will be enough to persuade Hitachi to go-ahead remains to be seen. The Company is reported to be planning to decide week ending 19th May according to the Mainichi newspaper. (2)
Horizon was supposed to be submitting its application for Development Consent to the Planning Inspectorate by the end of March, but this has now been delayed until spring or summer. (3) Officially the application has been delayed by concerns over the plant’s impact on colonies of protected seabirds. The Company said it needs to thrash out the impact building the power station will have on colonies of sandwich, Arctic and common terns. The species are protected under the EU birds and habitats directive. Nearby Cemlyn nature reserve is home to thousands of sandwich terns, which account for about fifth of the birds’ UK population and is the biggest on the country’s west coast. Wildlife groups are concerned about the effect of noise and light from the power station’s construction, as well as a reduction in food for the birds to forage on. Land clearance for the vast site is also expected to displace potential predators, such as rats and foxes. The company says it hopes to resolve the issues and submit the Development Consent Order (DCO) application before the end of June. The delay is expected to be a bump in the road rather than major headache for Horizon, which, rather optimistically believes Wylfa could be generating electricity by the mid-2020s. (4)
Horizon might be telling the truth about the need to resolve these wildlife issues, but the delay gives the Company more time to lobby the Westminster Government for more financial support to build the reactors.
Hitachi now says it wants to slash its Horizon shareholding. The Chairman was apparently planning to ask Theresa May to take direct stake in Horizon. According to the Nikkei Asian review Hitachi expects the U.K. government to invite private British companies to participate and hopes to reduce its own stake to less than 50%.
Hitachi has recently concluded that the risk of proceeding with the Anglesey project, at an estimated cost of more than 3 trillion yen (£20 billion), is too great to manage on its own as a private company. It plans to withdraw from the project if restructuring negotiations fall through. Such a move would have significant repercussions for nuclear power policy for both Britain and Japan. In response to Hitachi’s concerns, the British government earlier this month proposed that U.K. interests and Japanese public and private interests join with Hitachi to move Wylfa forward. The three sets of shareholders would each put 300 billion yen into the project, giving each a one-third stake. According to sources, the company and the Japanese government.
see it as too risky for Japanese interests to retain a majority shareholding and hope that British interests will acquire a controlling stake. (5)
Number 10 remained tight-lipped over its negotiations with Hitachi, and a spokesman declined to comment on the latest talks. Hannah Martin, of Greenpeace, said the “information blackout” is “unjustifiable” because of the high costs to be paid by energy users to support the projects. “The public have a right to know what the government is planning to do with their money and why,” she said. “Major Western economies are reducing their exposure to nuclear, so why is Britain doing the exact opposite? It would make no sense to waste yet more on expensive and outdated nuclear when technologies such as offshore wind can do the same job faster and cheaper”. (6)
The Times reports that the entire £15bn-plus cost of Wylfa could land on the government’s balance sheet, even though taxpayers are expected to hold only a minority stake. The final deal with Hitachi may see taxpayers take an equity stake in Wylfa, possibly as much as 33%, alongside Hitachi and the Japanese government. Direct state exposure to the construction of a nuclear plant has faced stiff resistance from the Treasury because of fears about cost overruns and the impact on government debt. Industry insiders said a minority taxpayer stake could result in the entire liability landing on the state’s books, despite the Japanese partners, because official statisticians now take a more conservative approach to accounting for risk where the government is concerned. Any state stake in Horizon would be sold on once construction was completed. (7)
The Japanese Mainichi newspaper reported that Hitachi had received an assurance from the British government that it will guarantee loans for the construction of two reactors in Wales. But Hitachi is still pushing for the British government to take a stake in the project and guarantee electricity prices to ensure it is profitable, the Mainichi said. The cost of the Hitachi project in Wales has ballooned to 3 trillion yen (£20 billion) due to the tougher safety measures, the newspaper said. But BEIS said “We don’t recognise these reports. Nuclear power remains a crucial part of the UK’s energy future but we have always been clear that this must be delivered at the right price for consumers and taxpayers.” (8)
The Times concluded that Britain’s plans to offer financial support for Wylfa were mired in confusion amid conflicting reports of the meeting between the prime minister and Hitachi. Duncan Hawthorne, chief executive of Horizon, told The Times last year that loan guarantees would not make the plant viable and the company had been seeking direct government investment as well as a subsidy contract. Mainichi reported that the plant would cost more than £20 billion, making it even more expensive than EDF’s Hinkley Point C project. A Horizon source distanced itself from that figure. (9)
Caroline Lucas says if Theresa May has agreed to a £13.3 billion loan she’s doing it “without any transparency or scrutiny”, effectively lending out public money behind closed doors. (10) The SNP demanded the Government rule out public money on “failing nuclear projects”. Drew Hendry, their business spokesman, said: “This is yet another damning report of the UK government’s misguided nuclear obsession. Hinkley Point is already set to cost consumers a fortune because of the appalling strike price deal the UK government made with EDF. The Prime Minister must now categorically rule out any public bail out of this, or any other nuclear project and put an end to secret discussions behind closed doors.” (11)
Hannah Martin, Head of Energy at Greenpeace UK, said: “No bank, hedge fund or insurer will touch the UK’s new nuclear programme with a bargepole. So Hitachi has no option but to ask the government for a taxpayer bailout to keep their collapsing reactor programme afloat. This would leave the British public to carry much of the cost and all of the risk. Any prudent investor would laugh at this request. After the Hinkley debacle, it’s vital that the government stops trying to keep our energy policy a secret and presents any offer of a deal to Parliament before the Hitachi board meeting at the end of May. Otherwise it’s difficult to know where their generosity to the nuclear industry might end.”
Prof Stephen Thomas says Wylfa could provide a new model for UK nuclear projects. The Government needs something to demonstrate that Hinkley is the exception rather than the rule. Wylfa has 3 big advantages – support of the Japanese Government; unlike Areva and Westinghouse Hitachi-GE is not bankrupt and disgraced; and it is claimed that the ABWR is a proven technology. The project is a little bit cheaper than Hinkley but only because it’s smaller. Loan guarantees will be essential, and will reduce interest payable to banks. Hitachi is too small to own and operate a facility that is going to cost £25bn. And they don’t have the experience to operate it. The ABWR is actually quite an old reactor design. There are no other prospects for Hitachi to sell the ABWR. 4 reactors in Japan were completed in 4 to 5 years, but that’s the same for other reactors in Japan. There are 2 uncompleted reactors in Japan; and 2 reactors ordered for Taiwan but work suspended. The lifetime load factor of the 4 reactors has been very poor 47 – 71%. All have suffered long shutdowns. In 3 cases this was down to seismic issues. Two reactors had big turbine problems. Even if you take out those years when the reactors were shut performance was still poor. It’s a pre-Chernobyl; pre 9/11; pre-Fukushima design that we have a track record for. (12)
Steve Thomas’ briefing for Greenpeace on “The failings of the Advanced Boiling Water Reactor (ABWR) proposed for Wylfa Nuclear Power Station” is available here: https://www.greenpeace.org.uk/wp-content/uploads/2018/05/ABWR-briefing-final.pdf
Greenpeace has also published a briefing on “Hitachi’s nuclear safety breaches and the case against public funding for the proposed Wylfa Nuclear Power Station.” https://www.greenpeace.org.uk/wp-content/uploads/2018/05/hitachi-briefing-final.pdf http://www.no2nuclearpower.org.uk/wp/wp-content/uploads/2018/05/NuClearNewsNo107.pdf
Nuclear Subsidies – We Told You So – Moorside and Sizewell UK
NuClear News No.107 May 2018, Moorside Seeking a Government stake in Horizon has been a key lobbying strategy for Hitacji for well over a year now, but the UK government’s refusal to make even a commitment in principle on that front has many in the UK nuclear industry worried. None more so than those invested in the success of another nuclear developer: NuGen, the company Toshiba hopes to sell to exclusive bidder Korea Electric Power Co. (Kepco). Kepco appears to be losing enthusiasm for the project in the absence of support from the UK government — especially with prospects of a reactor deal in Saudi Arabia. (13)
The state-run Korea Electric Power Corp. (KEPCO) is now saying that it will finalise its purchase of NuGen by September after analyzing its potential profits and viability. Yet in December, when KEPCO was selected as a preferred bidder by Toshiba, the company said it would finalise the deal in early 2018.The Seoul government is involved in the negotiation and is delving into the nuclear project’s profitability and potential risks, while the two companies have been discussing the detailed terms of contracts. Unlike KEPCO’s UAE project, which only involves the construction of nuclear reactors, market watchers say the Moorside project is more risky because KEPCO has to come up with financial solutions for construction and operation. The state-utility firm plans to build two of its APR-1400 reactors on the site, which would have a combined capacity of up to 3 gigawatts. (14)
Back home KEPCO is struggling with snowballing losses because of the South Korean government’s plan to shift to renewable energy from nuclear and coal power. (15)
Meanwhile EDF Energy appears to be going through the same process as Hitachi – demanding huge government subsidies to continue with the project and threatening to pull out if it doesn’t get them; then denying that it was threatening and starting negotiations with a government obsessed with building new reactors. EDF Energy told the Times at the start of April that it would reconsider plans for Sizewell C if it is unable to agree a viable financing model with the UK government. EDF threatened to abandon work unless it receives assurances from the government this year that a viable funding model exists. Simone Rossi, EDF Energy’s UK chief executive, said that rapid progress was needed because promised cost savings would not materialise if there was a significant delay between work on Hinkley and work on Sizewell. Mr Rossi has promised that Sizewell should be a fifth cheaper to build than Hinkley Point because EDF will be able to replicate much of the design work and will have a fully qualified workforce and supply chain ready to transfer across. However, he warned that a delay could jeopardise this. A lull of six months could be surmountable, but two years or more would be a problem. (16)
Later EDF denied it had threated to abandon work on Sizewell C and distanced itself from a report that it may pull the plug on the project unless it receives financial assurances from the Government. (17) Emily Gosden, author of the Times story tweeted “apparently EDF has ‘distanced itself’ from my story this morning… which reported what its chief executive told me on the record.”
In May Le Monde reported that EDF had launched discussions with the British government to find a new way of financing new reactors in Sizewell. (18)
The GMB called on the government to stop dithering and get Sizewell built. It’s an absolute no brainer that Britain will need at least six new nuclear plants, it said, because the National Grid has forecast up to 35 million pure electric vehicles will be on the roads by 2050 needing an extra 30 gigawatts of power — the equivalent of 10 Hinkley Point power stations. (19)
Dr Simon Evans of Carbon Brief tweeted in response: Energy-related press releases from GMB union are a sight to behold. They constantly repeat the same talking points, many of which are misleading or just plain wrong. Also of note: with rare exceptions, the quotes never end up in the papers. GMB union keeps saying National Grid has forecast a need for 30GW of extra power for EVs. At best, this is hopelessly misleading. We explained why last year, but that hasn’t stopped GMB. (See https://www.carbonbrief.org/factcheck-how-much-power-will-uk-electricvehicles-need )
It is worth noting that Framatome (formally Areva NP, which is now owned by EDF, Mitsubishi Heavy Industries (MHI) and Assystem), is working on a ‘new model’ EPR, the EPR-NM, “offering the same characteristics” as the EPR but with simplified construction and significant cost reduction – about 30%. The basic design was 30% complete by March 2016, and EDF has said that it, not the complex EPR being built at Flamanville, would be the model that replaced the French fleet from the late 2020s. (20) EDF has already said it hopes to reduce the costs of Sizewell C by 20-30%. (21)
Since Sizewell C isn’t expected to become operational until 2031, with construction starting around 2021, (22) it seems highly unlikely that EDF would try building anything other than an EPR-NM design. The question then is whether the EPR-NM would be required to undertake a new Generic Design Assessment.
In April Caroline Lucas asked the Secretary of State for Business, Energy and Industrial Strategy, whether the Design Acceptance Certificate for the European Pressurised Reactor (EPR) could be used for a re-designed EPR. Energy Minister, Richard Harrington, replied that a GDA is not a statutory requirement of the nuclear licensing regime and any site specific elements of EPR design will be assessed by the Office for Nuclear Regulation as part of a site specific safety case ahead of any construction. (23) The DAC for the European Pressurised Reactor (EPR) was issued on 13 December 2012 and is valid for a period of ten years. Renewal of the DAC is not mandated. Harrington also noted that ONR expect to complete its assessment of the EPR sitespecific safety case for Hinkley Point C in 2018. DAC renewal is not mandated and EDF has not informed Government that it plans to seek a renewal.
It is hard to see how such big cost reductions can be achieved without some dramatic changes sufficient to require a new safety case
According to the FT the Labour party is divided over whether to back new nuclear power stations. The high cost of Hinkley has prompted questions across Westminster about whether nuclear still represents value for money. Some MPs favour the industrial benefits of building power stations, while a growing faction wants to support only renewable wind and solar energy programmes. “It’s like a wasp’s nest, the differences are really bad,” said one shadow minister. “The jury is out and personally I’m still not convinced that nuclear should be part of the mix.” Rebecca Long-Bailey, shadow business secretary, remains adamant that Labour should continue to support Wylfa, as well as Moorside. “Public investment in nuclear energy would bring huge benefits through the nuclear supply chain and energy security,” she said. Ms Long-Bailey’s position is also supported by Sue Hayman, shadow environment secretary, whose constituency is in Cumbria. Large unions, including Unite and the GMB, are also strong advocates of nuclear energy. But other senior Labour figures are arguing for a U-turn, unless the cost of new nuclear plants can be reduced sharply. One compromise under consideration could see Labour keep the commitment it made in last year’s manifesto by supporting smaller “modular” reactors. Senior people in the nuclear industry said they remained confident about Labour’s continued support for their projects, because of the strength of union backing. (24)
- For a nice short Q&A on ‘What’s happening with UK’s new nuclear power projects?’ see the Greenpeace Unearthed website: https://unearthed.greenpeace.org/2018/05/16/wylfa-hitachi-build-wales-newnuclear-project/ http://www.no2nuclearpower.org.uk/wp/wp-content/uploads/2018/05/NuClearNewsNo107.pdf
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