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South Africa should dump nuclear power – Energy Minister’s advisers reveal

flag-S.AfricaEnergy minister’s advisers reveal why nuclear should be dumped News 24, Dec 07 2016 14:53  Matthew le Cordeur Cape Town – A Ministerial Advisory Council on Energy (Mace) working group report on South Africa’s future energy plan explains that by removing policy adjustments and keeping the plan at a least cost level, the need for nuclear energy falls away.

The report was presented by Mace member Mike Levington on Wednesday, as part of the Department of Energy’s (DoE’s)  public consultation workshop for the Integrated Resource Plan (IRP) and Integrated Energy Plan process……….

Energy Minister Tina Joemat-Pettersson and Public Enterprises Minister Lynne Brown have come out in support of nuclear energy as a big part of the eventual IRP, but critics have warned that nuclear energy’s inclusion will be a political decision and not based on scientific fact.

The Mace report recommended that the “annual new-build limits for solar PV and wind should be removed” from the base case assumptions, Levington revealed.

“This unconstrained scenario … re-run with correct solar PV and wind cost assumptions, should form the least-cost base case of IRP 2016,” it explained.

“Step by step constraints or policy adjustments scenarios (for example annual new-build limits for solar PV and wind) should also be financially modelled and the total cost per year of such constrained scenarios compared with the revised least-cost Base Case to assess the cost effectiveness of such interventions,” it said.

The Mace committee said nuclear energy is not a least-cost option in the current 2010 IRP.

“In IRP 2010, nuclear was not the least-cost option,” they said. “It was a policy decision to include nuclear in the plan to cater for uncertainties around the forecasted cost reduction of renewables, as at the time it was unclear whether they would materialise in the magnitude and as quickly as anticipated in the IRP 2010.

“These adjustments led to the model building nuclear under very specific constraints, where the amount of required CO2-neutral electricity could not be supplied entirely by renewables because of these annual new-build limits.”

Looking ahead, it said a “least cost IRP model, free of any artificial constraints and before any policy adjustments, does not include any new nuclear power generators”.

“The optimal least cost mix is one of solar PV, wind and flexible power generators (with relatively low utilisation).”…….. http://www.fin24.com/Economy/energy-ministers-advisers-reveal-why-nuclear-should-be-dumped-20161207

December 12, 2016 Posted by | politics, South Africa | Leave a comment

EDF’s financial crisis will leave french taxpayers with a huge nuclear bill

AREVA EDF crumblingFrench taxpayers face huge nuclear bill as EDF financial crisis deepens, Ecologist, Paul Brown 8th December 2016 
Nuclear giant EDF could be heading towards bankruptcy, writes Paul Brown, as it faces a perfect storm of under-estimated costs for decommissioning, waste disposal and Hinkley C. Meanwhile income from power sales is lagging behind costs, and 17 of its reactors are off-line for safety tests. Yet French and UK governments are turning a blind eye to the looming financial crisis.

The liabilities of Électricité de France (EDF) – the biggest electricity supplier in Europe, with 39 million customers – are increasing so fast that they will soon exceed its assets, according a report by an independent equity research company,

Bankruptcy for EDF seems inevitable – and if such a vast empire in any other line of business seemed to be in such serious financial trouble, there would be near-panic in the workforce and in governments at the subsequent political fall-out.

But it seems that the nuclear-dominated EDF group is considered too big to be allowed to fail. So, to keep the lights on in western Europe, the company will have to be bailed out by the taxpayers of France and the UK.

The French government, facing elections next spring, and the British, struggling with the implications of the Brexit vote to leave the European Union, are currently turning a blind eye to the report by AlphaValue that EDF has badly under-reported its potential liabilities.

Ageing nuclear reactors

While EDF is threatening to sue people who say it is technically bankrupt, the evidence is that the cost of producing electricity from its ageing nuclear reactors is greater than the market price.

Coupled with the impossibility of EDF paying the full decommissioning costs of its reactors, it is inevitable that it is the taxpayers in France and the UK who will eventually pick up the bill. However this will not be easy due to the EU’s ‘state aid’ rules, which limit governments’ ability to support ailing companies.

There is also the ongoing thorny problem of disposing of the nuclear waste and spent fuel rods, which are building up in cooling ponds and stores on both sides of the Channel, with no disposal route yet in sight.

A looming problem for EDF, which already admits is has €37 billion of debt, is that 17 of its ageing fleet of nuclear reactors, which provide 70% of France’s electricity, are being retired.

According to AlphaValue, EDF has underestimated the liabilities for decommissioning these reactors by €20 billion. Another €33.5 billion should be added to cost of handling nuclear waste, the report says. Juan Camilo Rodriguez, an equity analyst who is the author of the report, says that a correct adjustment of nuclear provisions would lead to the technical bankruptcy of the company.

In a statement, EDF said it “strongly contests the alleged accounting and financial analyses by the firm AlphaValue carried out at the request of Greenpeace and relating to the situation of EDF”.

It says that its accounts are audited and certified by its statutory auditors, and that the dismantling costs of EDF’s existing nuclear power fleet have also been subject to an audit mandated by the French Ministry of the Environment, Energy and the Sea.

Even with its huge debts, EDF’s problems could be surmounted if the company was making big profits on its electricity sales, but the cost of producing power from its nuclear fleet is frequently greater than the wholesale price.

That creates a second problem – that unless the wholesale price of electricity rises and stays high, the company will make a loss on every kilowatt of electricity it sells. The new rightwing French presidential candidate, François Fillon, promises not to retire French reactors and to keep them going for 60 years. But this cannot be done without more cost.

This is the third problem: vast sums of capital are needed to refurbish EDF’s old nuclear fleet for safety reasons following the 2011 Fukushima nuclear disaster in Japan. …….

Repeated life extensions

Since the sale of UK nuclear plants to EDF in 2008 at a cost £12.5 billion, the company has continued to operate them, and has repeatedly got life extensions to keep them running.

But this cannot go on forever, and they are expected to start closing in the next ten years. Once this happens, the asset value of each station would become a liability, and EDF’s mountain of debt would get bigger.

So far, the French and UK governments, and the company itself, seem to be in denial about this situation. Currently 17 French reactors are shut down for safety checks, following the discovery of faulty safety-critical compenents including large, difficult to replace steel forgings like steam generators.

The company has issued reassuring statements that they will be back to full power after Christmas, however in so doing EDF is assuming that the safety checks will give the reactors a clean bill of health. In fact, there are three other possible outcomes:

  • additional potentially time-consuming tests are needed that will create further months of downtime.
  • remedial engineering works are required to make the reactors safe. These would probably be costly and time-consuming.
  • key components at the heart of the reactors, for example steam generators, need to be replaced altogether. However this would be so costly that, for a nuclear plant already reaching the end of its lifetime, premature closure would be the only viable option.

Perhaps the most likely outcome is that some of the 17 reactors will fall into each of these four categories, creating as yet unquantifiable unbudgeted costs for the company.

Meanwhile, to make up the shortfall from the closed reactors, electricity is being bought from neighbouring countries, including the UK, to keep the lights on in France. The power shortage is temporarily causing an increase in wholesale prices – but one that EDF is unable to fully exploit because so many of its reactors are not generating.

The future remains unpredictable – but as long as there are no actual power cuts, no action is expected from governments. Despite official denials, however, the calculations of many outside the industry suggest that it is only a matter of time before disaster strikes.

The cost of producing electricity from renewables is still falling, while nuclear gets ever more expensive, and massive liabilities loom. Ultimately, the bill will have to be passed on to the taxpayers. http://www.theecologist.org/News/news_analysis/2988433/french_taxpayers_face_huge_nuclear_bill_as_edf_financial_crisis_deepens.html

 

December 10, 2016 Posted by | business and costs, France, politics | Leave a comment

Donald Trump’s team want Energy Department to save the failing nuclear industry

Republican hawk (Trump)Trump Team’s Asking for Ways to Keep Nuclear Power Alive by Mark Chediak and Catherine Traywick, Bloomberg,  December 9, 2016 
  • Nuclear facing increasing competition from gas, renewables
  • Trump team asked Energy Department for ways to help nuclear
  • President-elect Donald Trump’s advisers are looking at ways in which the U.S. government could help nuclear power generators being forced out of the electricity market by cheaper natural gas and renewable resources.

    In a document obtained by Bloomberg, Trump’s transition team asked the Energy Department how it can help keep nuclear reactors “operating as part of the nation’s infrastructure” and what it could do to prevent the shutdown of plants. Advisers also asked the agency whether there were any statutory restrictions in resuming work on Yucca Mountain, a proposed federal depository for nuclear waste in Nevada that was abandoned by the Obama administration.

  • The list of questions to the Energy Department offers one of the clearest indications yet of Trump’s potential plans for aiding America’s battered nuclear power generators. Five of the country’s nuclear plants have closed in the past five years, based on Energy Department data, and more are set to shut as cheaper supplies from gas-fired plants, wind and solar squeeze their profits.

    Media representatives for the Trump transition and Energy Department didn’t immediately respond to calls and e-mails seeking comment. For more on the questions Trump’s team sent the Energy Department, click here.…….https://www.bloomberg.com/news/articles/2016-12-09/trump-s-team-is-asking-for-ways-u-s-can-keep-nuclear-alive

December 10, 2016 Posted by | politics, USA | 1 Comment

Bulgaria pays compensation damages to Russia, for scrapping Belene nuclear plant

Bulgaria’s NEK settles arbitration damages for shelved Belene nuclear plant  http://sofiaglobe.com/2016/12/09/bulgarias-nek-settles-arbitration-damages-for-shelved-belene-nuclear-plant/ Bulgaria’s state-owned electric utility NEK has paid 601.6 million euro in damages to Atomstroyexport, the foreign contracts subsidiary of Russia’s state nuclear corporation Rosatom, Energy Minister Temenouzhka Petkova said on December 9 during question time in Parliament.

The money was transferred into Atomstroyexport’s accounts on December 8, Petkova said.

In a statement, Atomstroyexport confirmed receipt of the funds and was satisfied with the fact that NEK disbursed its commitments in full under the terms of an agreement signed in October, which saw the Russian company drop the daily penalty interest as long as NEK paid the principal owed by December 15.

The accumulated amount of daily penalties would have reached 23.8 million euro by that date. NEK’s agreement with Atomstroyexport also saw the Russian company accept a 20.9 million euro deduction in the original amount of damages ordered by arbitration, following several objections raised by the Bulgarian side to the calculation methodology.

Atomstroyexport was picked to build two 1000MW nuclear reactors at Belene on the Danube River, a project that was shut down by Bulgaria in 2012. The Russian contractor filed for arbitration, asking for 1.2 billion euro in damages for equipment ordered for the nuclear power plant, which NEK never paid for, and won the court action in June, although it was awarded just over half of the amount it claimed.

NEK decided not to appeal the ruling in September after Parliament passed a bill on September 28 that authorised a cash injection from the state Budget to NEK to pay the damages awarded by the tribunal.

The delay in the disbursement was due to the fact that Bulgaria was waiting for the European Commission to rule on whether such a transfer was allowed under the EU’s state aid rules. The Commission gave its approval earlier this week, according to reports in Bulgarian media.

NEK will now take ownership of the equipment manufactured by Atomstroyexport, but uncertainty remains about what the company will do next. Bulgarian officials travelled to Iran earlier this year to discuss a possible sale of the equipment, but there has been no development in the months since then.

Speaking to reporters in Parliament on December 9, Petkova said the Belene assets – the site itself and the equipment from Atomstroyexport – could be spun off into a separate company that would be put up for privatisation.

“If there is [investor] interest, then the [Belene nuclear power plant] project could be carried out on a market basis. If there is no investor interest, we will go in another direction and seek other options,” she said, as quoted by Bulgarian National Radio.

December 10, 2016 Posted by | Bulgaria, business and costs, politics | Leave a comment

France’s new nuclear reactors mired in debt

plants-downFrench taxpayers face huge nuclear bill as EDF financial crisis deepens, Ecologist, Paul Brown 8th December 2016 “………New nuclear stations  Even more money is required to finish new nuclear stations EDF is already committed to building. The first, Flamanville in northern France, is five years late and billions over budget. Questions over the quality of the steel in its reactor are still not resolved, and it may never be fully operational.

Add to that the need for €12 billion (or potentially considerably more) capital to complete the two nuclear stations EDF is committed to building at Hinkley Point in southwest England, and it is hard to see where all the money will come from.

To help the cash-strapped company, its ultimate owner, the French state, has already provided €3 billion in extra capital this year, and decided to forego its shareholder dividend. But that is a drop in the ocean.

Mycle Schneider, a Paris-based independent international consultant on energy and nuclear policy, says: “The French company overvalues its nuclear assets, and underestimates how much it will cost to decommission them.

“However, EDF’s biggest problem is the cost of producing power from these ageing power stations. The cost is greater than the wholesale price, so everything they sell is at a loss. It is impossible to see how they can ever make a profit.”

He says that is not the company’s only problem: France has not dealt with the problem of nuclear waste, and has badly underestimated the cost of doing so: “With German electricity prices going down and production increasing in order to export cheap electricity to France, it is impossible to see how EDF can ever compete. It is really staggering that no one is paying any attention to this.”

Even former EDF director Gérard Magnin agrees. He resigned from the board in July as he thought the Hinkley Point project too risky for the company because of its already stretched finances. Now he says that, with the reactors closed for safety checks, the French nuclear industry faces “its worst situation ever”.

The company’s troubles do not stop in France, as EDF also owns the UK nuclear industry. Ironically, it took over 15 reactors in the UK after British Energy went bankrupt in 2002 because the cost of producing the electricity was greater than the wholesale price – exactly the situation being repeated now in France.http://www.theecologist.org/News/news_analysis/2988433/french_taxpayers_face_huge_nuclear_bill_as_edf_financial_crisis_deepens.html

December 9, 2016 Posted by | business and costs, France, politics | Leave a comment

South Africa will not review its nuclear power plans

Plan to go to market for nuclear proposals not open for review http://www.iol.co.za/news/politics/plan-to-go-to-market-for-nuclear-proposals-not-open-for-review-7140535 9 December 2016,  Emsie Ferreira Cabinet will not revisit its decision to endorse plans to proceed with a request for proposals to build new nuclear reactors, Presidency Minister Jeff Radebe said on Friday.

December 9, 2016 Posted by | politics, South Africa | Leave a comment

Donald Trump on the inevitability of nuclear war

TrumpDoes Donald Trump Believe Nuclear War Is Inevitable? The man about to take control of US nukes has a very fatalistic view, Mother Jones,  DEC. 8, 2016 n just seven weeks, a man known for being ill-tempered, thin-skinned, narcissistic, and erratic will take control of the US nuclear arsenal. Donald Trump will have the authority and power to launch any combination of the country’s 4,500 nuclear weapons. At any time and for any reason he deems fit, Trump could destroy a nation and, through miscalculation, the world.

During the presidential campaign, he uttered several troubling statements about nuclear arms. At a Republican primary debate, he botched a question about the nuclear triad—America’s system of sea-, air-, and land-based nuclear weapons—suggesting he did not understand the most basic information about the structure of the US nuclear command. (He babbled, “For me, nuclear is just the power, the devastation is very important to me.”) At other points in the campaign, Trump noted he would support allowing Japan, South Korea, and Saudi Arabia to obtain nuclear weapons and indicated he would be open to using such weapons against ISIS and in other conflicts.

What makes Trump’s loose talk—and ignorance—about nuclear weapons particularly worrisome is that in the past, he has taken a fatalistic approach toward the notion of nuclear war. He has spoken as if he believed such a conflagration was almost inevitable. And now he is about to become one of the few humans on the planet who can decide the fate of the Earth……. http://www.motherjones.com/politics/2016/12/donald-trump-nuclear-war-weapons-inevitable

December 9, 2016 Posted by | politics, USA, weapons and war | Leave a comment

No case for nuclear energy – South Africa’s civic rights organisation Outa

text-Noflag-S.AfricaOuta says there is no case for nuclear http://www.iol.co.za/business/news/outa-says-there-is-no-case-for-nuclear-7126828  / 8 December 2016,  Emsie Ferreira Cape Town – Civic rights organisation Outa on Thursday said it believed the case for building new nuclear energy reactors had been dismantled after the energy minister’s advisors told public hearings there were cheaper viable options.

“Following input provided by numerous entities at Wednesday’s Integrated Energy and Resource Plan (IEP and IRP) draft documents, Outa believes the rationale for any plans to introduce nuclear energy into South Africa’s electricity grid has been removed,” Outa’s portfolio director Ted Blom said.
He said the first day of hearings on the draft resource and energy blueprints had shown that they contained serious flaws in their assumptions of the prices of different energy technologies and that there was a need to for the IRP base case scenario to use the cheapest options. The base case scenario advanced in the IRP provides for South Africa to add 20 gigawatt of new nuclear energy by 2050 and Eskom has said it would it go to the market with a request for proposals by the end of the year still.
A team of experts that advised Energy Minister Tina Joemat-Pettersson challenged this conclusion and said their input was ignored.  Business Day reported that members of the panel of 40 experts told the hearings that the department’s decision to impose artificial constraints on how much renewable energy could be added to the grid, as well as outdated pricing had allowed nuclear into the model. Outa chairman Wayne Duvenhage said the hearings had already yielded valuable input for the final IRP and he did no see how it could support the government and Eskom’s plans for nuclear expansion.
“Personally, I cannot see how the final IRP-2016 document will be able to suggest the inclusion of even one kilowatt of energy being generated through nuclear. If nuclear energy is indeed forced into the system, the DOE’s credibility will come under serious scrutiny.” Outa has called on the department to allow more time for public submissions.
 “We remain concerned that the DOE is trying to force the process to be complete by the end of March 2017, which we believe will not be sufficient time,” Blom said.

 

December 9, 2016 Posted by | civil liberties, politics, South Africa | Leave a comment

President elect Trump: his Cabinet and Climate

climate-denial-floodWhat You Should Know About Trump’s Cabinet & Climate http://www.climatecentral.org/news/trump-cabinet-climate-change-20920 By  November 30th, 2016 As President-elect Donald Trump continues to round out his cabinet and White House staff, his policies and priorities are coming more into focus.

All indications so far point to a bleak future for addressing climate change, or even recognizing it as one of the world’s largest challenges. A number of his cabinet nominees, political appointees and closest advisors are outright climate deniers while others have funded the denial of climate change or are lukewarm on accepting the science.

December 9, 2016 Posted by | politics, USA | Leave a comment

New York Governor Cuomo under fire for subsidising nuclear power

taxpayer bailoutCritics blast Cuomo’s $7.6B subsidy for nuclear plants, WBFO.org, By KAREN DEWITT, 8 Dec 16,  A long-term energy plan by the Cuomo administration that includes a nearly $8 billion subsidy to two upstate nuclear power plants is being challenged from both ends of the political spectrum, and a lawsuit has been filed to try to stop the deal.

Gov. Andrew Cuomo’s Public Service Commission plans to convert 50 percent of the state’s power sources to renewable energy over the next decade and a half. A controversial part of that program includes a $7.6 billion state-financed subsidy to a company that now runs two New York nuclear power plants ­– Nine Mile Point in Oswego and Ginna near Rochester – and is taking over a third plant, FitzPatrick, also in Oswego.

That has angered environmental groups, who filed a lawsuit, saying the PSC “acted improperly when it mandated a massive subsidy to prop up New York’s aging, failing nuclear power plants as part of the State’s Clean Energy Standard.”

Other progressive-leaning groups, including the New York Public Interest Research Group, also object to the deal.

“In some ways, it’s a straight-up ratepayer issue,” said Blair Horner, NYPIRG’s legislative director.

He said the deal will result in $2.3 billion in increased payments for residential utility customers, and even more for businesses. That’s in a state that already has among the highest utility rates in the nation.

“Roughly 800,000 New Yorkers are already having a hard time paying their existing electric bills,” Horner said. “This isn’t going to make it any better.”

Not only left-leaning groups oppose the deal. Fossil fuel companies like Shell and BP have objected, filing complaints with the PSC. Oil and gas companies would have to essentially help subsidize the deal through the price of zero emission tax credits bought and sold in New York…..http://news.wbfo.org/post/critics-blast-cuomos-76b-subsidy-nuclear-plants

December 9, 2016 Posted by | politics, USA | Leave a comment

South Africa’s nuclear experience poses a warning for Zambia

Nuclear Deal(s): What Zambia can learn from South Africa, Daily Maverick,  08 DEC 2016   Zambia has just signed four memoranda of understanding with Rosatom, Russia’s state-run nuclear agency, with a view to signing a nuclear deal worth $10-billion. While government has hailed the deal as a way to solve Zambia’s ongoing energy crisis, Zambians should be asking difficult questions – especially given Rosatom’s track record in South Africa. By SIMON ALLISON.

 When Zambian President Edgar Lungu addressed Parliament in September, he announced a bold new energy strategy: Zambia is going nuclear…….

Three months later, we now have a better idea of what he was talking about. In a ceremony in Lusaka’s plush Pamodzi Hotel on Tuesday, Zambian government representatives signed a series of Memoranda of Understanding with Rosatom, the Russian state-owned nuclear agency.

The deal, which is not legally binding, sets out a 15-year nuclear co-operation plan, with the eventual goal of constructing a nuclear gigawatt nuclear power plant. In addition, Rosatom will help train Zambian nuclear engineers, develop a nuclear energy regulator, and spearhead nuclear research in the country. Local media estimate the total value of the deal to be $10-billion (that’s nearly half of Zambia’s GDP)……

There’s no doubt that Zambia needs an energy plan……..

But is nuclear really the solution? As Zambia prepares to go down the nuclear road, they could learn a few lessons from down south. Although South Africa has successfully operated a nuclear power station at Koeberg for several decades, a government initiative to build two new nuclear power stations has been mired in controversy, with Rosatom playing a central role in the drama. Based on the South African experience, here are three questions that Zambians should be asking.

1. Does Zambia need nuclear power? There’s no question that Zambia needs power…….. But nuclear power might not be the best solution. It’s not just the inherent dangers associated with nuclear power, although that is a factor; but also the nature of the energy generated. Nuclear power stations produce a steady “base line” supply of energy, which may not be appropriate for Zambia’s needs. Nuclear power can’t be turned on and off in response to supply and demand……

Critics of South Africa’s proposed nuclear deal have highlighted similar issues, as well as pointing out that South Africa – and, by extension, Zambia – might be better placed to take advantage of the decreasing cost of renewable energy.

“The promotion of nuclear energy at the expense of renewables bucks global trends. An industrial nation like Germany is phasing out nuclear power, and has a much higher renewable energy investment than sunny, windy South Africa. Chinese renewables expansion currently exceeds nuclear development by far,” said Hartmut Winkler, physics professor at the University of Johannesburg, writing in the Mail & Guardian.

scrutiny-on-costs2. Can Zambia afford nuclear power?

Nuclear power is expensive. Very expensive. It’s not just the cost of the construction of the nuclear plant itself, although those numbers are eye-watering (especially in an economy as small as Zambia’s, where GDP in 2015 was $21.2-billion). It is also the cost of financing that construction.

With most banks unwilling to take such a massive gamble, financing usually comes from the vendor itself. In South Africa’s case, Rosatom is supposed to fund the construction of the two new nuclear plants, and recoup its costs by selling the electricity generated at an artificially high price. According to the text of a secret agreement uncovered by investigative journalist Lionel Faull, Rosatom will be able to dictate that price at will – leaving South African energy users at the mercy of a foreign corporation.

corruption3. Will the nuclear deal be corrupt?

Suspicion of corruption immediately attaches itself to any massive infrastructure project, and with good reason – especially in the case of nuclear deals. South Africa appears to be a textbook example of how the massive sums of money at stake can lead both government and corporations astray.

For example, French nuclear company Areva was accused by Sherpa, an anti-corruption NGO, of attempting to bribe high-ranking South African officials by purchasing unprofitable uranium mining assets for an inflated sum, just months before the tender for the nuclear project was announced. Rosatom itself, meanwhile, has been linked with a suspicious lack of transparency, fuelling fears that not all is above board. As Professor Winkler wrote in a separate piece for The Conversation:

“The nuclear debate gained a political dimension when President Jacob Zuma and his Russian counterpart, Vladimir Putin, started to develop an unusually close relationship… The lack of transparency surrounding the process, coupled with a history of corruption in South African mega-projects like the arms deal, has made the whole scheme seem suspicious to the broader public,” he said……. https://www.dailymaverick.co.za/article/2016-12-08-nuclear-deals-what-zambia-can-learn-from-south-africa/#.WEoQptJ97Gg

December 9, 2016 Posted by | AFRICA, politics | Leave a comment

German court ruling means only limited scope for utilities to claim compensation

legal costsflag_germanyE.ON sees limited scope for nuclear claims after ruling -Bernstein, Reuters, Dec 8 E.ON sees limited scope for compensation claims following a court ruling related to Germany’s nuclear exit that paves the way for utilities to try to reclaim money, its chief executive told brokerage Bernstein in an interview.

Germany’s highest court on Tuesday ruled that hastening the shutdown of nuclear plants after Japan’s Fukushima disaster violated some of the property rights of utility companies, allowing them to seek limited damages.

It said that utilities could claim back stranded investments made between December 2010 and March 2011 when the government decided to extend the life of nuclear plants. In 2011, the government’s position changed and it decided to shut down all stations by 2022.

E.ON said earlier this week it had invested several hundred million euros in 2010 in the expectation that the government’s nuclear policy would remain unchanged.

“Of this, a low triple digit million amount was likely incurred in the four month period between December 2010 and March 2011, which should be eligible for compensation,” Bernstein quoted CEO Johannes Teyssen as saying.

Germany’s environment minister Barbara Hendricks said this week the court ruling meant demands by utilities for billions of euros in compensation was off the table……http://www.reuters.com/article/germany-nuclear-e-on-idUSL5N1E31FC

December 9, 2016 Posted by | business and costs, Germany, Legal, politics | Leave a comment

Will Donald Trump be able to gut U.S. climate policies?

How far will Trump go to gut U.S. climate policies? http://www.eenews.net/stories/1060046632  Evan Lehmann, E&E News reporter ClimateWire: Monday, December 5, 2016 President-elect Donald Trump would have to undertake a herculean political effort to reverse his administration’s responsibility to reduce greenhouse gases, and he might not be able to count on Republicans in Congress for help.

In promising to rescind the Clean Power Plan, Trump is clipping a regulation off at the stem, but the roots would survive to pester his administration with the threat of lawsuits and the likelihood of future rules governing the release of carbon dioxide at U.S. firms, according to experts.

When the Supreme Court ruled in 2007 that greenhouse gases are an “air pollutant,” it set in motion a series of actions that could now require Trump to convince the courts that global warming is not adversely affecting humans and the Earth — after the same court, the U.S. Court of Appeals for the District of Columbia Circuit, came to the opposite conclusion in 2012.

That effort would occur if Trump’s U.S. EPA tried to reverse the so-called endangerment finding of 2009, a tick-tock in the bureaucratic record that gave rise to a cascade of regulations on greenhouse gases over cars, power plants, natural gas wells and more in the future. The finding is EPA’s trigger to regulate. Continue reading →

December 7, 2016 Posted by | climate change, politics, USA | Leave a comment

Time that lawmakers limited the power of American President to start using nuclear weapons

TrumpNo one can stop President Trump from using nuclear weapons  Chicago Tribune, Alex WellersteinSpecial to The Washington Post, 1 Dec 16, 

All year, the prospect of giving the real estate and reality TV mogul the power to launch attacks that would kill millions of people was one of the main reasons his opponents argued against electing him. “A man you can bait with a tweet is not a man we can trust with nuclear weapons,” Hillary Clinton said in her speech accepting the Democratic presidential nomination. Republicans who didn’t support Trump — and even some who did, such as Florida Sen. Marco Rubio — also said they didn’t think Trump could be trusted with the launch codes.

Now they’re his. When Trump takes office in January, he will have sole authority over more than 7,000 warheads. There is no failsafe. The whole point of U.S. nuclear weapons control is to make sure that the president — and only the president — can use them whenever he decides to do so. The only sure way to keep President Trump from launching a nuclear attack, under the system we’ve had in place since the early Cold War, would have been to elect someone else.

When the legal framework for nuclear weapons was developed, the fear was about not irrational presidents but trigger-happy generals. The Atomic Energy Act of 1946, passed with President Harry Truman’s signature after nine months of acrimonious congressional hearings, firmly put the power of the atomic bomb in the hands of the president and the civilian components of the executive branch. It was a momentous and controversial law, crafted in the months following the atomic bombings of Hiroshima and Nagasaki, with an eye toward future standoffs with the Soviet Union…….

Eventually, the brass adopted the idea that, when it came to nuclear matters, they were at the president’s beck and call. It was not generals’ responsibility to make the order; it was their responsibility to carry it out.

That the president would be the only person competent to use nuclear weapons was never challenged. Even asking the question would throw the entire system into disarray, as Maj. Harold Hering learned in 1973. Hering was a 21-year Air Force veteran who was decorated for his flying in Vietnam before being sent for training as a nuclear missile squadron commander. He had been taught that officers had an obligation to disobey illegal orders. So when he was told how to launch a nuclear attack, he asked what seemed like a simple question: How could he be sure that an order to launch his missiles was lawful? How could he be sure, for example, that the president wasn’t insane? Instead of an answer, he got the boot: an aborted promotion and an administrative discharge for “failure to demonstrate acceptable qualities of leadership” and for indicating “a defective mental attitude towards his duties.”

The Air Force’s problem, in short, is that once a serviceman starts down the rabbit hole of doubt, he becomes an unreliable second-guesser — and suddenly he is one of the few people who can decide whether nuclear weapons are used.

The procedure for ordering a nuclear attack involves more than one person: The president cannot literally press a button on his desk and start World War III. There is no “nuclear button” at all. Instead, the U.S. nuclear command-and-control system is bureaucratically and technically complex, stretching out to encompass land-based missile silos, submarine-based ballistic and cruise missiles, and weapons capable of being dropped from bombers. The chain of command requires that the president order the secretary of defense to carry out a launch; the secretary serves as the conduit for implementation by the military. There are succession policies in place so that the procedure can be continued in the event of the death or incapacitation of either the president or the secretary of defense — or their designated successors.

Most details of how a nuclear war would be started are classified, because an enemy who knew enough about the system could come up with ways to complicate or defeat it. What is known is that an aide is always following the president, carrying at least one large satchel (often two) known as the “nuclear football,” reportedly containing information about nuclear attack possibilities and how the president could verify his identity, authenticate orders and communicate with the military about implementing them……..

It might be worth resurrecting this debate , if we take seriously the idea that presidents — any of them, much less Trump — should not have the legal authority to conduct arbitrary and unilateral nuclear war. Perhaps now, decades after the end of the Cold War, we are past the moment when we need to entrust that power in a single person. One can imagine a law that would allow the president to use nuclear weapons in the face of imminent danger, the sort of situation in which a matter of minutes or even seconds could make a difference, but would enact formal requirements for outside consensus when more options were on the table. It would not require a full renunciation of the possibility of a first-strike nuclear attack (something the United States has never been willing to make) but might add some reassurances that such decisions would not be made unilaterally.

Congress ceded a considerable amount of power to the presidency in 1946. Seventy years later, maybe it is time lawmakers took some of it back. http://www.chicagotribune.com/news/opinion/commentary/ct-trump-use-nuclear-weapons-20161201-story.html

December 2, 2016 Posted by | politics, USA, weapons and war | 1 Comment

Exelon’s nuclear bailout in trouble

taxpayer-bailout-exelonNew trouble for Exelon nuke bailout as Rauner balks, Chicago Business, By  , 1 Dec 16,  The calendar has turned to December, and a sudden wind has chilled the prospects for Exelon’s nuclear bailout.

The deal Exelon announced yesterday with Gov. Bruce Rauner appears to be teetering today. Rauner’s staff has found problems it didn’t anticipate now that the bill language purporting to carry out the governor’s agreement with the Chicago-based energy company is out.

Among the issues “not agreed to” are “loose cap language” that doesn’t appear to protect business ratepayers the way Rauner envisioned when Exelon announced that businesses would pay no more than 1.3 percent more than the rates they pay today to finance an annual $200 million-plus subsidy to keep open two money-losing nuclear plants Exelon has moved to close, according to a source close to the negotiations.

Rauner also discovered a provision on prevailing wages that he accused archrival House Speaker Michael Madigan of inserting into the bill, this source said.

Madigan’s spokesman, Steve Brown, said the prevailing wage language has been in the legislation for months. “Once again, they’re grasping at straws and they’re not quite getting the grip,” he said.

Rauner’s camp is characterizing the provisions as “poison pills.” But the source said the governor still is committed to the “framework” he negotiated with Exelon.

How this will impact floor votes scheduled for today on what was before now a rapidly moving compromise is unclear.

Crain’s will update with further developments.

The CEO of Illinois’ second largest power generator is fuming over Rauner’s 11th-hour agreement to support Exelon’s nuclear-plant bailout—calling it a “regressive tax on rural America.” ……..http://www.chicagobusiness.com/article/20161201/NEWS11/161209995/exelon-nuclear-bailout-hits-a-snag-as-illinois-gov-bruce-rauner-balks

 

Illinois Lawmakers and Attorney General Wary Of Nuclear Deal http://northernpublicradio.org/post/illinois-lawmakers-and-attorney-general-wary-nuclear-deal

 Exelon says it finally has a deal to subsidize nuclear power plants in Clinton and the Quad Cities.

On Wednesday afternoon, after weeks of intense negotiating, ComEd and Exelon put out a news release saying they had a deal thanks to Gov. Bruce Rauner.  But the administration didn’t publicly support the bill at a House hearing. And it hasn’t responded to repeated media inquiries about the governor’s stance.

That has some state lawmakers on edge. Linda Chapa LaVia is a Democrat from Aurora and heads the House Energy Committee.

“It has happened in the past where we get to a point where it gets to the governor’s desk, and then we take a wrong direction,” she says. Consumer groups also have reservations about the measure. Susan Satter is with the Illinois Attorney General’s office. Her boss opposed previous versions of the Exelon deal, and Satter says she isn’t ready to weigh in on the latest proposal.

“This is a wildly complicated effort, and we just simply have not had the time to understand how it’s going to work,” Satter said.

Over the decade the plan would be in effect, ComEd says its average residential customers would pay no more than 25 cents a month related to the subsidy.

December 1 is the final day the General Assembly meets this year.  Exelon also claims it’s the last chance to keep the Clinton and Quad Cites plants open.

December 2, 2016 Posted by | politics, USA | Leave a comment