Nuclear Power: UK’s Financial Challenge Unveiled

the actual cost might reach as high as £10 billion per reactor, resulting in an astonishing cumulative expense for the decommissioning process. …

this substantial cost could ultimately fall on taxpayers, raising concerns about the financial burden on the public.

Dev X Noah Nguyen, November 21, 2023

The UK’s Commitment to Nuclear Power and Financial Challenges

The United Kingdom’s dedication to nuclear power is becoming a financially challenging commitment as the dismantling expenses for its nuclear generating facilities continue to escalate. These costs have been advantageous for businesses involved in the dismantling process but a noteworthy expenditure for UK taxpayers

Regardless of the substantial costs associated with the new nuclear reactors at Hinkley Site C and the rising price of clean-up initiatives, the nation’s government remains committed to nuclear technology. This unwavering commitment is driven by the belief that nuclear power is crucial for achieving the UK’s long-term energy security and climate change goals. However, critics argue that increased investment in renewable energy sources could provide similar benefits, without the high financial burden and safety concerns associated with nuclear power……………………………………………………

Concerns Regarding Decommissioning Costs and Life Expectancy of Reactors

Nearly all of the remaining functional reactors are scheduled for closure by 2028, except Sizewell B, anticipated to stay in operation until 2035. With a life expectancy of roughly 40 years—considerably shorter than the 60 to 80 years frequently claimed by the sector—questions emerge about the demolition costs for the existing 23 reactors and the two under construction at Hinkley Point C.

As these reactors reach the end of their life cycle, it is crucial to plan and allocate resources effectively for their dismantling and waste disposal. The cost of decommissioning and managing nuclear facilities can significantly impact the overall economic feasibility of the energy generated, emphasizing the need for accurate cost estimations and environmentally responsible strategies.

Projected Costs of Dismantling and Importance of Effective Management

By the end of 2022, the UK’s Nuclear Decommissioning Authority (NDA) projected a total dismantling cost of £149 billion. If this figure encompasses Hinkley Site C, it would equate to about £6 billion per reactor. This substantial financial investment highlights the importance of thoroughly managing the decommissioning process to ensure effective resource allocation. With the growing push towards renewable energy sources, proper management and safe dismantling of nuclear reactors have become increasingly significant for the country’s transition towards sustainable energy.

Higher Potential Costs and the Financial Burden on Taxpayers

However, Professor Stephen Thomas from the University of Greenwich’s energy policy department posits that the actual cost might reach as high as £10 billion per reactor, resulting in an astonishing cumulative expense for the decommissioning process. He further elaborates that this substantial cost could ultimately fall on taxpayers, raising concerns about the financial burden on the public. To mitigate such consequences, proper planning and establishing an adequate funding source must be undertaken for a feasible and efficient decommissioning process…………………………………………………………………………………….

What are the concerns regarding the decommissioning costs and life expectancy of nuclear reactors in the UK?

With functional reactors scheduled for closure and shorter life expectancies than often claimed, there are concerns about the demolition costs for the existing reactors and effective management of resources for dismantling and waste disposal. The cost of decommissioning can significantly impact the overall economic feasibility of nuclear-generated energy and necessitates accurate cost estimations and environmentally responsible strategies………….. https://www.devx.com/news/nuclear-power-uks-financial-challenge-unveiled/

November 24, 2023 Posted by Christina Macpherson | decommission reactor, UK | Leave a comment

UK Has £10 Billion Per Nuclear Reactor Decommissioning Bottomless Pit

estimate in late 2022 was that the program was likely to cost £260 billion given the cost trends. That’s £10.4 billion per reactor, an order of magnitude higher than the industry average of three years ago.

Whether £6 billion or £10 billion, these numbers should be giving national energy policy makers pause. After all, those costs are going to be paid in the future in future value dollars that will be inflated. They won’t be getting magically smaller due to discounting, but should be included in cost cases with the discounting rates built in.

Clean Technica, November 19, 2023, Michael Barnard

The decommissioning costs for the UK’s nuclear generation are coming home to roost, and they are laying golden eggs for the firms that won the business. For UK citizens, not so much. Despite the very high costs of both the new nuclear reactors at Hinkley Site C, the rapidly rising costs of clean up and the much cheaper alternatives available, the country’s current administration remains committed to the technology. Something is likely to give.

The UK is like the USA and France, a western nuclear military power. They built and operated four nuclear powered submarines with nuclear missiles and two nuclear powered aircraft carriers. That gave them one of the preconditions for success for commercial nuclear electricity generation.

They built all of the 14 shut down and 9 currently operating nuclear generation plants between 1957 and 1995, satisfying the conditions of success of a three to four decade build out to maintain master builders, creation of a nuclear construction industry with skilled, certified and security validated resources, and building a couple of dozen reactors to amortize the national program across.

They built all reactors with a very narrow set of designs, first the Magnox which also created weapons grade plutonium and then the AGR which was a modified Magnox optimized for electricity generation, not plutonium manufacturing. The high similarity and only two designs across all 23 reactors satisfied another criterion for success of a nuclear program…………….

Naturally, the nuclear program was a national strategic priority for the UK with bi-partisan support between the Conservatives and Labour, satisfying another condition of success.

This was a blueprint for a successful nuclear electrical generation program, and why nuclear generation is a poor fit for free market economics.

Despite no longer having the obvious conditions for success for a new nuclear program, the British government got behind the Hinkley Point C construction of two new EPR reactors with their unproven design. That program is years late and 50% over budget as a result. The reactors are GW scale, with 3.2 GW between the two reactors so have one condition for success out of six. The UK government also have planned two EPRs at the Sizewell site, with one of the innumerable Conservative Prime Ministers of the past decade committing £100 million of governmental money in a vain attempt to get any private investors interested. No schedule has been set for construction of those reactors.

But now the reactors are shut down or about to be shut down. Most of the remaining operating reactors will be off the grid by 2028, with only Sizewell B hanging on until 2035. All reactors had roughly a 40 year lifespan, not the 60 to 80 years often claimed by the industry, including the 60 year claim for Hinkley Point C.

How much will it cost to decommission those 23 reactors and the two Hinkley Point C reactors still under construction? The last time I looked at nuclear decommissioning costs and duration was three years ago. At the time, the average was roughly a billion US dollars and a century of duration per site.

Well, the UK’s nuclear program is definitely exceeding that. As of late 2022, the official estimate of the UK’s Nuclear Decommissioning Authority (NDA) was £149 billion. Assuming Hinkley Site C was rolled into that number, that would be a cost of £6 billion per reactor, or more than many nuclear advocates claim new nuclear can be built for.

However, Stephen Thomas, a professor of energy policy at the University of Greenwich and a regular analyst of the nuclear industry with a publication history on energy and nuclear programs with a global reach stretching back to 2004, has a slightly different expectation. He first published on the UK’s NDA in 2005 and has been tracking costs closely since, including with freedom of information requests to get accurate numbers.

His estimate in late 2022 was that the program was likely to cost £260 billion given the cost trends. That’s £10.4 billion per reactor, an order of magnitude higher than the industry average of three years ago.

Whether £6 billion or £10 billion, these numbers should be giving national energy policy makers pause. After all, those costs are going to be paid in the future in future value dollars that will be inflated. They won’t be getting magically smaller due to discounting, but should be included in cost cases with the discounting rates built in.

Given the magnitude of the costs, effectively every MWh generated by the UK fleet of reactors cost substantially more than its official stated cost. The price will be paid, after all.

If there were no alternatives to nuclear generation, then this wouldn’t be a problem compared to global warming. But, of course, this is 2023 and there are proven, effective, efficient and reliable forms of low-carbon electrical generation that do compete with nuclear energy, wind and solar. ……………………………………

The full lifecycle costs of nuclear energy are fairly well established now, and they are much higher than for renewables, transmission and storage. The conditions for success for nuclear programs are well established as well, and there isn’t a single country in the world that has fulfilled them in the 21st Century. Even China has failed, in my assessment as their industrial policy of exporting nuclear reactors of any type foreign buyers might want overrode energy policy requirements to build only a single design.

It’s unclear to me what blend of ideology, tribalism and magical thinking are combining to make countries think that their nuclear programs are unique, and that they will succeed at them when there are clear alternatives.  https://cleantechnica.com/2023/11/19/uk-has-e10-billion-per-nuclear-reactor-decommissioning-bottomless-pit/

November 22, 2023 Posted by Christina Macpherson | decommission reactor, UK | Leave a comment