New Nukes Update
This is a fun one.
Nuclear: Atomic Power Has Favorable Reaction - Financial Times - 26 May 09
"A western energy executive who has been studying China’s nuclear programme tells a story about looking at pictures of the site being cleared for construction. 'Before, there was a mountain there. Then they bring the army in and a few months later the mountain has gone, and they have the space to build six reactors.'
He tells the story with a slightly wistful air. If only - he must be thinking - building reactors in the west were that easy."
"Stephen Thomas, professor of energy studies at the University of Greenwich, argues: 'The two main French entities in nuclear power - Areva and EDF - originally were, and remain today, largely branches of the French government. They are directed as a matter of state policy and have benefited from extremely favourable government financing and credit assurances.
'To duplicate this experience in the US, you would essentially have to nationalise your electric utilities and have all new power plant siting decisions emanate from the White House.'
Although issues of safety, nuclear proliferation and waste disposal often dominate the political debate about nuclear power, the central issue for companies thinking of investing in nuclear power is simply cost. New nuclear plants are hugely expensive. EDF estimates about €4bn-€5bn ($5bn-$7bn) for one of its 1,600 megawatt reactors."
Consider that this single reactor cost is a huge portion of the book value of even the larger utilities. Duke Energy, for example, is just north of $20 billion. How big of a bet do taxpayers and ratepayers really want to place on this unproven new technology? Recall, no prototypes are being built, they are jumping straight to full and enormous scale.
It's clear that Wall Street still finds it radioactive. Thus the continuing industry calls for federal loan guarantees by the billions and state approvals of "pre-paid", by the ratepayer, nuclear plant financing.
Nuclear: Atomic Power Has Favorable Reaction - Financial Times - 26 May 09
"A western energy executive who has been studying China’s nuclear programme tells a story about looking at pictures of the site being cleared for construction. 'Before, there was a mountain there. Then they bring the army in and a few months later the mountain has gone, and they have the space to build six reactors.'
He tells the story with a slightly wistful air. If only - he must be thinking - building reactors in the west were that easy."
"Stephen Thomas, professor of energy studies at the University of Greenwich, argues: 'The two main French entities in nuclear power - Areva and EDF - originally were, and remain today, largely branches of the French government. They are directed as a matter of state policy and have benefited from extremely favourable government financing and credit assurances.
'To duplicate this experience in the US, you would essentially have to nationalise your electric utilities and have all new power plant siting decisions emanate from the White House.'
Although issues of safety, nuclear proliferation and waste disposal often dominate the political debate about nuclear power, the central issue for companies thinking of investing in nuclear power is simply cost. New nuclear plants are hugely expensive. EDF estimates about €4bn-€5bn ($5bn-$7bn) for one of its 1,600 megawatt reactors."
Consider that this single reactor cost is a huge portion of the book value of even the larger utilities. Duke Energy, for example, is just north of $20 billion. How big of a bet do taxpayers and ratepayers really want to place on this unproven new technology? Recall, no prototypes are being built, they are jumping straight to full and enormous scale.
It's clear that Wall Street still finds it radioactive. Thus the continuing industry calls for federal loan guarantees by the billions and state approvals of "pre-paid", by the ratepayer, nuclear plant financing.