Tag Archives: nuclear

Austria: ‘we will launch Hinkley C nuclear subsidy legal challenge by April’ Updated for 2026





Austria is to launch a legal challenge against the European Union’s (EU) decision to allow billions of pounds of subsidies for Hinkley Point C, casting fresh doubt over the UK’s first planned nuclear reactors in 20 years.

In October, the EU approved the controversial £17.6bn subsidy deal for the power station, which is expected to provide 7% of the UK’s electricity by 2023.

David Cameron had previously hailed the subsidy deal between the French state-owned EDF and the UK government as “a very big day for our country”. He also described the signing of the Hinkley deal as marking the next generation of nuclear power in Britain, for its ability to meet energy demand and contribute to long-term security of supply.

But the appeal by Austria, a non-nuclear nation, will be launched by April and could delay a final investment decision by the UK government for over two years.

The Guardian understands that Luxembourg is very likely to support the case in the European Court of Justice, arguing that the UK’s loan guarantees – over a 35-year period – constitute illegal state aid. Another EU country may follow suit.

“There has been a high-level decision by our Chancellor and Vice Chancellor to challenge the EU decision on Hinkley within two months of its publication in the EU’s official journal”, said Andreas Molin, the director of Austria’s environment ministry. The journal’s publication is expected in the next fortnight.

Stefan Pehringer, a foreign policy adviser to the Austrian federal chancellory said: “The Austrian government has announced its readiness to appeal against the EC’s [European Commission] decision concerning state aid for the Hinkley Point project, as it does not consider nuclear power to be a sustainable form of technology – neither in environmental nor in economic terms.”

Can Hinkley survive the 2015 election?

Work has already begun at the Hinkley site, which the UK government said will have a capacity of 3.3GW, with the electricity it generates bought at a strike-price of £92.50 per megawatt hour, around double the market rate.

EDF had planned to sign a long-awaited funding agreement with its Chinese investment partners in March, thought to be key to settling procurement plans for the £24.5bn build, and the precursor to a final investment decision.

But the lawsuit may delay such plans, and introduce uncertainty about the UK’s attitude towards Hinkley after elections in May.

The Austrian government’s analysis suggests that European court cases of this nature typically last for one and a half years. But “as this is going to be a more complicated and fundamental case, it will last a little bit longer”, Molin said. “Two years could be a rough guess.”

He added: “If you accept the argument that Hinkley constitutes a ‘market failure’ as put forward by the Commission, you could apply it to all other means of electricity production, probably all other forms of energy conversion, and it might even apply beyond the energy sector. We think that the single energy market itself is at stake in this case.”

The Commission’s hurried and paradoxical decision

The EU’s original decision last year surprised many observers, as the then-competition commissioner Joaquín Almunia had previously expressed scepticism about Hinkley’s’ conformity with an exhaustive list of strict state aid criteria.

These govern proportionality, decarbonisation, the potential for market distortion, the definition of ‘market failures’ and, crucially, whether the public monies advance an “objective of common interest” for the bloc.

No grounds for the Commission’s volte-face have yet been published, but the Guardian has seen a draft of the EU decision from last October, suggesting that one key decider had been advised that Hinkley advanced an EU ‘common interest’ around security of supply.

A Commission investigation declared itself “unsure” whether the reactor would resolve the UK’s security of supply issues, and was unconvinced that ‘diversification’ of supplies, on its own, would justify the monies involved.

“The Commission however accepted that the decision was in line with the Euratom treaty”, the draft ruling says. The Euratom treaty obliges member states to facilitate investments in nuclear power and encourage ventures that lead to the technology’s development.

Molin said that Austria would argue that the Euratom treaty could not be used in this way in state aid cases, but there would be other lines of dispute. “We will try to prove that the commission did not consider all the things which it should have considered and that there were some procedural flaws”, he said.

Minutes from the Commission’s internal discussion of the issue show that the EC’s president at the time, José Manuel Barroso, viewed the Hinkley decision as unprecedented, and said that it “touched on a politically sensitive topic”.

No contract for the Hinkley plant was put out to tender, and the ruling sparked outrage among environmentalists in the EU, that shows no signs of dying down.

“The Commission took a political decision disguised as a legal one”, said Mark Johnston, a senior adviser to the European Policy Centre. “Barroso thought it would be easier to bend over for Cameron than to defend the single energy market. The significance of the case for energy investments across Europe could not be greater.”

A ‘fatal blow’, claim the Greens

Molly Scott Cato, the Green Party MEP for the South West region, which includes Hinkley, said: “I think that this court case is certainly going to delay the signing and also the construction of Hinkley.”

“As one of the government’s main arguments for Hinkley was that it would solve the ‘energy gap’ before renewables could be brought onstream, it is a fatal blow to Hinkley as part of a future energy strategy for the UK.”

Natalie Bennett, the leader of the Green Party, said that such claims now seemed risible. “I think we have seen the final generation of nuclear power, I am very pleased to say. It’s gone, it’s dusted. Lets focus on evidence-based renewables and energy conservation futures.”

But the UKIP MEP and energy spokesman, Roger Helmer, offered strong support for nuclear energy, qualified only by a caveat that the government’s Hinkley deal had been “excessively expensive” because of regulatory uncertainty from Brussels.

“Given that Hinkley is a trailblazer for the new generation of nuclear and now looks like being held up for a long period of time, it will be extremely damaging – not just for nuclear but across the whole spectrum of industry”, he said.

No grounds for such state aid in EU treaties

Dr Dörte Fouquet, a lawyer for the Brussels-based law firm Becker Büttner Held, which specialises in energy and competition law, said Austria’s chances of success were “pretty high” because there were no grounds for giving such state aid under EU treaty law and Austria would question the common European interest in building a nuclear power plant in the UK.

She added that long delays now appeared inevitable: “A court process that kicks off in May would take a minimum of two years and if it goes into appeals, you’d then be looking at another two years. So it could be a minimum of three and a maximum of four years or longer.

But the Department of Energy and Climate Change remained bullish. “The UK is confident that the state aid case for Hinkley Point C is legally robust and we vigorously support the European Commission’s defence of its decision last year”, a  spokesman told the Guardian.

“This brings us one step closer to seeing new nuclear as part of our future low carbon energy mix. We have no reason to believe that Austria, or any other party, is preparing a case which has any merit.”

But DECC did not respond to questions about the effect that a lengthy court case might have on cost over-runs or a final investment decision.

The renewables industry has bridled at what some see as double-standards in EU decisions last year denying state aid to renewable energy in Germany, while allowing it for nuclear in the UK.

“It’s puzzling why the European Commission has decided to have a set of rules for one energy source and entirely different set for another”, said European Wind Energy Association spokesman Oliver Joy.

“If we want a level playing field for all energy forms in the EU then we need common standards that allow all technologies to compete on an equal footing.”

 


 

Arthur Neslen is the Europe environment correspondent at the Guardian. He has previously worked for the BBC, the Economist, Al Jazeera, and EurActiv, where his journalism won environmental awards. He has written two books about Israeli and Palestinian identity.

This article is a synthesis of two articles by Arthur Nelsen originally published on the Guardian: ‘Austria to launch lawsuit over Hinkley Point C nuclear subsidies‘ and ‘UK nuclear ambitions dealt fatal blow by Austrian legal challenge, say Greens‘. It is published on The Ecologist by kind permission via the Guardian Environment Network.

 

 




389354

Austria: ‘we will launch Hinkley C nuclear subsidy legal challenge by April’ Updated for 2026





Austria is to launch a legal challenge against the European Union’s (EU) decision to allow billions of pounds of subsidies for Hinkley Point C, casting fresh doubt over the UK’s first planned nuclear reactors in 20 years.

In October, the EU approved the controversial £17.6bn subsidy deal for the power station, which is expected to provide 7% of the UK’s electricity by 2023.

David Cameron had previously hailed the subsidy deal between the French state-owned EDF and the UK government as “a very big day for our country”. He also described the signing of the Hinkley deal as marking the next generation of nuclear power in Britain, for its ability to meet energy demand and contribute to long-term security of supply.

But the appeal by Austria, a non-nuclear nation, will be launched by April and could delay a final investment decision by the UK government for over two years.

The Guardian understands that Luxembourg is very likely to support the case in the European Court of Justice, arguing that the UK’s loan guarantees – over a 35-year period – constitute illegal state aid. Another EU country may follow suit.

“There has been a high-level decision by our Chancellor and Vice Chancellor to challenge the EU decision on Hinkley within two months of its publication in the EU’s official journal”, said Andreas Molin, the director of Austria’s environment ministry. The journal’s publication is expected in the next fortnight.

Stefan Pehringer, a foreign policy adviser to the Austrian federal chancellory said: “The Austrian government has announced its readiness to appeal against the EC’s [European Commission] decision concerning state aid for the Hinkley Point project, as it does not consider nuclear power to be a sustainable form of technology – neither in environmental nor in economic terms.”

Can Hinkley survive the 2015 election?

Work has already begun at the Hinkley site, which the UK government said will have a capacity of 3.3GW, with the electricity it generates bought at a strike-price of £92.50 per megawatt hour, around double the market rate.

EDF had planned to sign a long-awaited funding agreement with its Chinese investment partners in March, thought to be key to settling procurement plans for the £24.5bn build, and the precursor to a final investment decision.

But the lawsuit may delay such plans, and introduce uncertainty about the UK’s attitude towards Hinkley after elections in May.

The Austrian government’s analysis suggests that European court cases of this nature typically last for one and a half years. But “as this is going to be a more complicated and fundamental case, it will last a little bit longer”, Molin said. “Two years could be a rough guess.”

He added: “If you accept the argument that Hinkley constitutes a ‘market failure’ as put forward by the Commission, you could apply it to all other means of electricity production, probably all other forms of energy conversion, and it might even apply beyond the energy sector. We think that the single energy market itself is at stake in this case.”

The Commission’s hurried and paradoxical decision

The EU’s original decision last year surprised many observers, as the then-competition commissioner Joaquín Almunia had previously expressed scepticism about Hinkley’s’ conformity with an exhaustive list of strict state aid criteria.

These govern proportionality, decarbonisation, the potential for market distortion, the definition of ‘market failures’ and, crucially, whether the public monies advance an “objective of common interest” for the bloc.

No grounds for the Commission’s volte-face have yet been published, but the Guardian has seen a draft of the EU decision from last October, suggesting that one key decider had been advised that Hinkley advanced an EU ‘common interest’ around security of supply.

A Commission investigation declared itself “unsure” whether the reactor would resolve the UK’s security of supply issues, and was unconvinced that ‘diversification’ of supplies, on its own, would justify the monies involved.

“The Commission however accepted that the decision was in line with the Euratom treaty”, the draft ruling says. The Euratom treaty obliges member states to facilitate investments in nuclear power and encourage ventures that lead to the technology’s development.

Molin said that Austria would argue that the Euratom treaty could not be used in this way in state aid cases, but there would be other lines of dispute. “We will try to prove that the commission did not consider all the things which it should have considered and that there were some procedural flaws”, he said.

Minutes from the Commission’s internal discussion of the issue show that the EC’s president at the time, José Manuel Barroso, viewed the Hinkley decision as unprecedented, and said that it “touched on a politically sensitive topic”.

No contract for the Hinkley plant was put out to tender, and the ruling sparked outrage among environmentalists in the EU, that shows no signs of dying down.

“The Commission took a political decision disguised as a legal one”, said Mark Johnston, a senior adviser to the European Policy Centre. “Barroso thought it would be easier to bend over for Cameron than to defend the single energy market. The significance of the case for energy investments across Europe could not be greater.”

A ‘fatal blow’, claim the Greens

Molly Scott Cato, the Green Party MEP for the South West region, which includes Hinkley, said: “I think that this court case is certainly going to delay the signing and also the construction of Hinkley.”

“As one of the government’s main arguments for Hinkley was that it would solve the ‘energy gap’ before renewables could be brought onstream, it is a fatal blow to Hinkley as part of a future energy strategy for the UK.”

Natalie Bennett, the leader of the Green Party, said that such claims now seemed risible. “I think we have seen the final generation of nuclear power, I am very pleased to say. It’s gone, it’s dusted. Lets focus on evidence-based renewables and energy conservation futures.”

But the UKIP MEP and energy spokesman, Roger Helmer, offered strong support for nuclear energy, qualified only by a caveat that the government’s Hinkley deal had been “excessively expensive” because of regulatory uncertainty from Brussels.

“Given that Hinkley is a trailblazer for the new generation of nuclear and now looks like being held up for a long period of time, it will be extremely damaging – not just for nuclear but across the whole spectrum of industry”, he said.

No grounds for such state aid in EU treaties

Dr Dörte Fouquet, a lawyer for the Brussels-based law firm Becker Büttner Held, which specialises in energy and competition law, said Austria’s chances of success were “pretty high” because there were no grounds for giving such state aid under EU treaty law and Austria would question the common European interest in building a nuclear power plant in the UK.

She added that long delays now appeared inevitable: “A court process that kicks off in May would take a minimum of two years and if it goes into appeals, you’d then be looking at another two years. So it could be a minimum of three and a maximum of four years or longer.

But the Department of Energy and Climate Change remained bullish. “The UK is confident that the state aid case for Hinkley Point C is legally robust and we vigorously support the European Commission’s defence of its decision last year”, a  spokesman told the Guardian.

“This brings us one step closer to seeing new nuclear as part of our future low carbon energy mix. We have no reason to believe that Austria, or any other party, is preparing a case which has any merit.”

But DECC did not respond to questions about the effect that a lengthy court case might have on cost over-runs or a final investment decision.

The renewables industry has bridled at what some see as double-standards in EU decisions last year denying state aid to renewable energy in Germany, while allowing it for nuclear in the UK.

“It’s puzzling why the European Commission has decided to have a set of rules for one energy source and entirely different set for another”, said European Wind Energy Association spokesman Oliver Joy.

“If we want a level playing field for all energy forms in the EU then we need common standards that allow all technologies to compete on an equal footing.”

 


 

Arthur Neslen is the Europe environment correspondent at the Guardian. He has previously worked for the BBC, the Economist, Al Jazeera, and EurActiv, where his journalism won environmental awards. He has written two books about Israeli and Palestinian identity.

This article is a synthesis of two articles by Arthur Nelsen originally published on the Guardian: ‘Austria to launch lawsuit over Hinkley Point C nuclear subsidies‘ and ‘UK nuclear ambitions dealt fatal blow by Austrian legal challenge, say Greens‘. It is published on The Ecologist by kind permission via the Guardian Environment Network.

 

 




389354

Austria: ‘we will launch Hinkley C nuclear subsidy legal challenge by April’ Updated for 2026





Austria is to launch a legal challenge against the European Union’s (EU) decision to allow billions of pounds of subsidies for Hinkley Point C, casting fresh doubt over the UK’s first planned nuclear reactors in 20 years.

In October, the EU approved the controversial £17.6bn subsidy deal for the power station, which is expected to provide 7% of the UK’s electricity by 2023.

David Cameron had previously hailed the subsidy deal between the French state-owned EDF and the UK government as “a very big day for our country”. He also described the signing of the Hinkley deal as marking the next generation of nuclear power in Britain, for its ability to meet energy demand and contribute to long-term security of supply.

But the appeal by Austria, a non-nuclear nation, will be launched by April and could delay a final investment decision by the UK government for over two years.

The Guardian understands that Luxembourg is very likely to support the case in the European Court of Justice, arguing that the UK’s loan guarantees – over a 35-year period – constitute illegal state aid. Another EU country may follow suit.

“There has been a high-level decision by our Chancellor and Vice Chancellor to challenge the EU decision on Hinkley within two months of its publication in the EU’s official journal”, said Andreas Molin, the director of Austria’s environment ministry. The journal’s publication is expected in the next fortnight.

Stefan Pehringer, a foreign policy adviser to the Austrian federal chancellory said: “The Austrian government has announced its readiness to appeal against the EC’s [European Commission] decision concerning state aid for the Hinkley Point project, as it does not consider nuclear power to be a sustainable form of technology – neither in environmental nor in economic terms.”

Can Hinkley survive the 2015 election?

Work has already begun at the Hinkley site, which the UK government said will have a capacity of 3.3GW, with the electricity it generates bought at a strike-price of £92.50 per megawatt hour, around double the market rate.

EDF had planned to sign a long-awaited funding agreement with its Chinese investment partners in March, thought to be key to settling procurement plans for the £24.5bn build, and the precursor to a final investment decision.

But the lawsuit may delay such plans, and introduce uncertainty about the UK’s attitude towards Hinkley after elections in May.

The Austrian government’s analysis suggests that European court cases of this nature typically last for one and a half years. But “as this is going to be a more complicated and fundamental case, it will last a little bit longer”, Molin said. “Two years could be a rough guess.”

He added: “If you accept the argument that Hinkley constitutes a ‘market failure’ as put forward by the Commission, you could apply it to all other means of electricity production, probably all other forms of energy conversion, and it might even apply beyond the energy sector. We think that the single energy market itself is at stake in this case.”

The Commission’s hurried and paradoxical decision

The EU’s original decision last year surprised many observers, as the then-competition commissioner Joaquín Almunia had previously expressed scepticism about Hinkley’s’ conformity with an exhaustive list of strict state aid criteria.

These govern proportionality, decarbonisation, the potential for market distortion, the definition of ‘market failures’ and, crucially, whether the public monies advance an “objective of common interest” for the bloc.

No grounds for the Commission’s volte-face have yet been published, but the Guardian has seen a draft of the EU decision from last October, suggesting that one key decider had been advised that Hinkley advanced an EU ‘common interest’ around security of supply.

A Commission investigation declared itself “unsure” whether the reactor would resolve the UK’s security of supply issues, and was unconvinced that ‘diversification’ of supplies, on its own, would justify the monies involved.

“The Commission however accepted that the decision was in line with the Euratom treaty”, the draft ruling says. The Euratom treaty obliges member states to facilitate investments in nuclear power and encourage ventures that lead to the technology’s development.

Molin said that Austria would argue that the Euratom treaty could not be used in this way in state aid cases, but there would be other lines of dispute. “We will try to prove that the commission did not consider all the things which it should have considered and that there were some procedural flaws”, he said.

Minutes from the Commission’s internal discussion of the issue show that the EC’s president at the time, José Manuel Barroso, viewed the Hinkley decision as unprecedented, and said that it “touched on a politically sensitive topic”.

No contract for the Hinkley plant was put out to tender, and the ruling sparked outrage among environmentalists in the EU, that shows no signs of dying down.

“The Commission took a political decision disguised as a legal one”, said Mark Johnston, a senior adviser to the European Policy Centre. “Barroso thought it would be easier to bend over for Cameron than to defend the single energy market. The significance of the case for energy investments across Europe could not be greater.”

A ‘fatal blow’, claim the Greens

Molly Scott Cato, the Green Party MEP for the South West region, which includes Hinkley, said: “I think that this court case is certainly going to delay the signing and also the construction of Hinkley.”

“As one of the government’s main arguments for Hinkley was that it would solve the ‘energy gap’ before renewables could be brought onstream, it is a fatal blow to Hinkley as part of a future energy strategy for the UK.”

Natalie Bennett, the leader of the Green Party, said that such claims now seemed risible. “I think we have seen the final generation of nuclear power, I am very pleased to say. It’s gone, it’s dusted. Lets focus on evidence-based renewables and energy conservation futures.”

But the UKIP MEP and energy spokesman, Roger Helmer, offered strong support for nuclear energy, qualified only by a caveat that the government’s Hinkley deal had been “excessively expensive” because of regulatory uncertainty from Brussels.

“Given that Hinkley is a trailblazer for the new generation of nuclear and now looks like being held up for a long period of time, it will be extremely damaging – not just for nuclear but across the whole spectrum of industry”, he said.

No grounds for such state aid in EU treaties

Dr Dörte Fouquet, a lawyer for the Brussels-based law firm Becker Büttner Held, which specialises in energy and competition law, said Austria’s chances of success were “pretty high” because there were no grounds for giving such state aid under EU treaty law and Austria would question the common European interest in building a nuclear power plant in the UK.

She added that long delays now appeared inevitable: “A court process that kicks off in May would take a minimum of two years and if it goes into appeals, you’d then be looking at another two years. So it could be a minimum of three and a maximum of four years or longer.

But the Department of Energy and Climate Change remained bullish. “The UK is confident that the state aid case for Hinkley Point C is legally robust and we vigorously support the European Commission’s defence of its decision last year”, a  spokesman told the Guardian.

“This brings us one step closer to seeing new nuclear as part of our future low carbon energy mix. We have no reason to believe that Austria, or any other party, is preparing a case which has any merit.”

But DECC did not respond to questions about the effect that a lengthy court case might have on cost over-runs or a final investment decision.

The renewables industry has bridled at what some see as double-standards in EU decisions last year denying state aid to renewable energy in Germany, while allowing it for nuclear in the UK.

“It’s puzzling why the European Commission has decided to have a set of rules for one energy source and entirely different set for another”, said European Wind Energy Association spokesman Oliver Joy.

“If we want a level playing field for all energy forms in the EU then we need common standards that allow all technologies to compete on an equal footing.”

 


 

Arthur Neslen is the Europe environment correspondent at the Guardian. He has previously worked for the BBC, the Economist, Al Jazeera, and EurActiv, where his journalism won environmental awards. He has written two books about Israeli and Palestinian identity.

This article is a synthesis of two articles by Arthur Nelsen originally published on the Guardian: ‘Austria to launch lawsuit over Hinkley Point C nuclear subsidies‘ and ‘UK nuclear ambitions dealt fatal blow by Austrian legal challenge, say Greens‘. It is published on The Ecologist by kind permission via the Guardian Environment Network.

 

 




389354

Austria: ‘we will launch Hinkley C nuclear subsidy legal challenge by April’ Updated for 2026





Austria is to launch a legal challenge against the European Union’s (EU) decision to allow billions of pounds of subsidies for Hinkley Point C, casting fresh doubt over the UK’s first planned nuclear reactors in 20 years.

In October, the EU approved the controversial £17.6bn subsidy deal for the power station, which is expected to provide 7% of the UK’s electricity by 2023.

David Cameron had previously hailed the subsidy deal between the French state-owned EDF and the UK government as “a very big day for our country”. He also described the signing of the Hinkley deal as marking the next generation of nuclear power in Britain, for its ability to meet energy demand and contribute to long-term security of supply.

But the appeal by Austria, a non-nuclear nation, will be launched by April and could delay a final investment decision by the UK government for over two years.

The Guardian understands that Luxembourg is very likely to support the case in the European Court of Justice, arguing that the UK’s loan guarantees – over a 35-year period – constitute illegal state aid. Another EU country may follow suit.

“There has been a high-level decision by our Chancellor and Vice Chancellor to challenge the EU decision on Hinkley within two months of its publication in the EU’s official journal”, said Andreas Molin, the director of Austria’s environment ministry. The journal’s publication is expected in the next fortnight.

Stefan Pehringer, a foreign policy adviser to the Austrian federal chancellory said: “The Austrian government has announced its readiness to appeal against the EC’s [European Commission] decision concerning state aid for the Hinkley Point project, as it does not consider nuclear power to be a sustainable form of technology – neither in environmental nor in economic terms.”

Can Hinkley survive the 2015 election?

Work has already begun at the Hinkley site, which the UK government said will have a capacity of 3.3GW, with the electricity it generates bought at a strike-price of £92.50 per megawatt hour, around double the market rate.

EDF had planned to sign a long-awaited funding agreement with its Chinese investment partners in March, thought to be key to settling procurement plans for the £24.5bn build, and the precursor to a final investment decision.

But the lawsuit may delay such plans, and introduce uncertainty about the UK’s attitude towards Hinkley after elections in May.

The Austrian government’s analysis suggests that European court cases of this nature typically last for one and a half years. But “as this is going to be a more complicated and fundamental case, it will last a little bit longer”, Molin said. “Two years could be a rough guess.”

He added: “If you accept the argument that Hinkley constitutes a ‘market failure’ as put forward by the Commission, you could apply it to all other means of electricity production, probably all other forms of energy conversion, and it might even apply beyond the energy sector. We think that the single energy market itself is at stake in this case.”

The Commission’s hurried and paradoxical decision

The EU’s original decision last year surprised many observers, as the then-competition commissioner Joaquín Almunia had previously expressed scepticism about Hinkley’s’ conformity with an exhaustive list of strict state aid criteria.

These govern proportionality, decarbonisation, the potential for market distortion, the definition of ‘market failures’ and, crucially, whether the public monies advance an “objective of common interest” for the bloc.

No grounds for the Commission’s volte-face have yet been published, but the Guardian has seen a draft of the EU decision from last October, suggesting that one key decider had been advised that Hinkley advanced an EU ‘common interest’ around security of supply.

A Commission investigation declared itself “unsure” whether the reactor would resolve the UK’s security of supply issues, and was unconvinced that ‘diversification’ of supplies, on its own, would justify the monies involved.

“The Commission however accepted that the decision was in line with the Euratom treaty”, the draft ruling says. The Euratom treaty obliges member states to facilitate investments in nuclear power and encourage ventures that lead to the technology’s development.

Molin said that Austria would argue that the Euratom treaty could not be used in this way in state aid cases, but there would be other lines of dispute. “We will try to prove that the commission did not consider all the things which it should have considered and that there were some procedural flaws”, he said.

Minutes from the Commission’s internal discussion of the issue show that the EC’s president at the time, José Manuel Barroso, viewed the Hinkley decision as unprecedented, and said that it “touched on a politically sensitive topic”.

No contract for the Hinkley plant was put out to tender, and the ruling sparked outrage among environmentalists in the EU, that shows no signs of dying down.

“The Commission took a political decision disguised as a legal one”, said Mark Johnston, a senior adviser to the European Policy Centre. “Barroso thought it would be easier to bend over for Cameron than to defend the single energy market. The significance of the case for energy investments across Europe could not be greater.”

A ‘fatal blow’, claim the Greens

Molly Scott Cato, the Green Party MEP for the South West region, which includes Hinkley, said: “I think that this court case is certainly going to delay the signing and also the construction of Hinkley.”

“As one of the government’s main arguments for Hinkley was that it would solve the ‘energy gap’ before renewables could be brought onstream, it is a fatal blow to Hinkley as part of a future energy strategy for the UK.”

Natalie Bennett, the leader of the Green Party, said that such claims now seemed risible. “I think we have seen the final generation of nuclear power, I am very pleased to say. It’s gone, it’s dusted. Lets focus on evidence-based renewables and energy conservation futures.”

But the UKIP MEP and energy spokesman, Roger Helmer, offered strong support for nuclear energy, qualified only by a caveat that the government’s Hinkley deal had been “excessively expensive” because of regulatory uncertainty from Brussels.

“Given that Hinkley is a trailblazer for the new generation of nuclear and now looks like being held up for a long period of time, it will be extremely damaging – not just for nuclear but across the whole spectrum of industry”, he said.

No grounds for such state aid in EU treaties

Dr Dörte Fouquet, a lawyer for the Brussels-based law firm Becker Büttner Held, which specialises in energy and competition law, said Austria’s chances of success were “pretty high” because there were no grounds for giving such state aid under EU treaty law and Austria would question the common European interest in building a nuclear power plant in the UK.

She added that long delays now appeared inevitable: “A court process that kicks off in May would take a minimum of two years and if it goes into appeals, you’d then be looking at another two years. So it could be a minimum of three and a maximum of four years or longer.

But the Department of Energy and Climate Change remained bullish. “The UK is confident that the state aid case for Hinkley Point C is legally robust and we vigorously support the European Commission’s defence of its decision last year”, a  spokesman told the Guardian.

“This brings us one step closer to seeing new nuclear as part of our future low carbon energy mix. We have no reason to believe that Austria, or any other party, is preparing a case which has any merit.”

But DECC did not respond to questions about the effect that a lengthy court case might have on cost over-runs or a final investment decision.

The renewables industry has bridled at what some see as double-standards in EU decisions last year denying state aid to renewable energy in Germany, while allowing it for nuclear in the UK.

“It’s puzzling why the European Commission has decided to have a set of rules for one energy source and entirely different set for another”, said European Wind Energy Association spokesman Oliver Joy.

“If we want a level playing field for all energy forms in the EU then we need common standards that allow all technologies to compete on an equal footing.”

 


 

Arthur Neslen is the Europe environment correspondent at the Guardian. He has previously worked for the BBC, the Economist, Al Jazeera, and EurActiv, where his journalism won environmental awards. He has written two books about Israeli and Palestinian identity.

This article is a synthesis of two articles by Arthur Nelsen originally published on the Guardian: ‘Austria to launch lawsuit over Hinkley Point C nuclear subsidies‘ and ‘UK nuclear ambitions dealt fatal blow by Austrian legal challenge, say Greens‘. It is published on The Ecologist by kind permission via the Guardian Environment Network.

 

 




389354

Sellafield – how the nuclear industry fleeced taxpayers Updated for 2026





Last 4th November the managing director of Sellafield, the giant nuclear waste processing plant on the Cumbian coast in NW England, issued its report to the six-monthly meeting of the nuclear sites stakeholder group covering the Sellafield plant. 

In bullish tone he opened his introduction, boldly pronouncing: “This time last year, in my first report to WCSSG as Sellafield Ltd’s Managing Director, I talked about our new strategy Key to Britain’s Energy Future.

“I explained that I wanted a clear strategy, understood by our employees and the local community, to drive improved performance in our nationally important task of cleaning up the Sellafield Site.

“The strategy describes how we will deliver our clean up mission by keeping Sellafield safe and secure, by making demonstrable progress on all of our activities and by providing a return on taxpayers’ investment through value for money and socio-economic benefit in our local community.

“Our strategy describes where we want to be, and the Sellafield plan explains how we will get there. We recently launched a companion document, the Excellence Plan which outlines activities that will improve our ability to reach our goal.”

Everything in the Sellafield garden is rosy

Rising to his optimistic theme he went on to claim: “Twelve months on and I believe we are beginning to see the strategy deliver improvements in performance and this gives me increasing confidence that we can achieve what we promised to do, on time and to budget …

“Looking ahead, we will continue to drive for reliable performance, an increasingly challenging task given the age of our plants and infrastructure. This means we need to strive to find innovative solutions to problems.

He concluded by noting: “We are being supported in this through a new collaborative approach with key stakeholders most associated with the delivery at Sellafield. The organisations include Sellafield Ltd, Office of Nuclear Regulation (ONR), the Environment Agency (EA), Nuclear Decommissioning Authority (NDA), Department of Energy and Climate Change, (DECC) and Shareholder Executive …

“As part of our drive for excellence we have recently completed a programme of nuclear safety culture surveys.  As we achieve more successes over the next number of months alongside the member organisations,” he finished off, “we will share this information at future meetings.”

Two months later – sacked

Barely two months later, on 13 January, Energy Secretary Ed Davey announced in a statement to Parliament that he was sacking Nuclear Management Partners (NMP), the private consortium awarded the £22 billion top tier management contract for Britain’s biggest nuclear installation, in early October 2008.

Davey told MPs: “The government agreed last year with the Public Accounts Committee’s conclusion that it was a priority to consider what contractual model might best deliver improved performance and value for money at Sellafield.

“In the meantime, we endorsed the Nuclear Decommissioning Authority (NDA)’s decision to roll the current Parent Body Organisation (PBO) contract forward into the second term (from 1 April 2014) to ensure that the progress made in the first five year term could be built upon.

“Sellafield Limited (the Site Licence Company which operates the site under the ownership of the PBO) continues to make progress and is currently on track to deliver against its key performance measures and milestones in 2014/15.

“Despite this progress, the NDA has concluded that a change in model is now the best way forward … Under the new arrangement, Sellafield Limited will become a subsidiary of the NDA and will continue to be led by a ‘world class team’, who will be appointed and governed by a newly-constituted Board of the Site Licence Company. “

DECC’s nuclear quango the NDA, the owners of Sellafield on behalf of the taxpayer, produced an 8-page so-called Stakeholder Briefing to explain what was going on.

It states, inter alia, that: “This decision is the result of careful consideration and review of various commercial approaches in use where the public and private sector comes together to deliver complex programmes …

“The review is consistent with the undertaking that NDA gave at the 4 November 2013 and 4 December 2013 Public Accounts Committee Hearings, based on the NAO report ‘Assurance of reported savings at Sellafield’, HC778, 29 October 2013, that NDA would consider its options in regard to the way the Sellafield site was operated and in particular the use of the PBO (parent body organization) model.”

But it is as illuminating as much for what it omits as what it reveals.

A scandalous agreement to fleece the taxpayer

How could such a turn-around happen so quickly? As with everything in the nuclear industry, all is not what seems, and there is a complicated backstory to the Sellafield decision, which is startling.

I have worked on this issue with Labour MP Paul Flynn for seven years, and his attempts to make transparent the deal done to give NMP the contract have been met with obstruction – by Government and the nuclear industry at every turn.

In July 2008, Flynn got a sniff that some dodgy dealing was under way by the Department for Business, Enterprise and Regulatory Reform (BERR), then responsible for nuclear energy policy, to award a management contract for Sellafield to a new consortium.

At its crux was the stipulation that all the potentially vast liabilities would be covered by the taxpayer, while all the profits went to the consortium,

To probe this possibility, he asked the Labour minister responsible what recent communications or discussions had taken place with both the NDA and consortium applicants for the Sellafield decommissioning contract on the indemnification of the contract holder against claims arising.

The now late Malcolm Wicks responded: “The Department has been informed by the Nuclear Decommissioning Authority (NDA) that it expects to have to grant an indemnity against uninsurable claims arising from a nuclear incident that fall outside the protections offered by the Nuclear Installations Act and the Paris / Brussels Convention to whichever of the four bidders for the Sellafield contract is successful.

“The NDA is conducting the Sellafield parent body organisation competition under the EU Competitive Dialogue procedure, evaluating the four bids received against agreed evaluation criteria. Within that process bidders were invited to make proposals for a nuclear indemnity under competitive tension against an established framework.

“It would not be viable for any of the bidders to proceed without an indemnity because any fee earning benefits of the contract would be overwhelmed by the potential liabilities. The NDA has assessed that the benefits of engaging a new contractor far outweigh the remote risk that an indemnity might be called upon. The final form of the indemnity will reflect the specific terms proposed by the preferred bidder.” (Hansard, 14 July 2008 : Column 76W).

But were MPs bothered?

The cat was out of the Sellafield Boondoggle bag. By 22nd October – after an exchange of letters with both the then chair of the Public Accounts Committee, Tory right winger, Sir Edward Leigh, and The Speaker, over the summer, Flynn tabled an early day motion (EDM 2321) – a kind of Parliamentary kite flying with political wallpaper covering – under the title ‘Parliamentary oversight of Sellafield indemnification’. It read:

“That this House notes that when the Government decided to provide indemnification against insurance claims following nuclear accident at the Low-level Waste Repository at Drigg, for the new American management company, the then Minister for Energy published a written statement in Hansard of 27th February 2008 and the associated Minute was placed in the Library to allow 14 sitting days for objections from hon. Members; contrasts this open procedure with the approach adopted for a similar insurance indemnification for the new private sector management company for Sellafield, Nuclear Management Partners, when no written statement was placed before Parliament but instead, the then Minister for Energy wrote on 14th July 2008 to the chairmen of the Committee on Public Accounts and Business, Enterprise and Regulatory Reform Committee, enclosing a copy of the Minute setting out the proposed arrangements and stating that a copy of the Minute would be placed in the Library; further notes that this Minute arrived in the Library on 14th October, more than 75 days after the period for hon. Members to object officially elapsed; believes it is unacceptable for hon. Members to be denied the opportunity to comment on this Minute, the effect of which is to privatise the profits of the Sellafield management contract leaving the potentially multi-billion pound liabilities with taxpayers; declines to give approval to the proposed indemnification arrangements; and calls upon the Government to reopen the period in which hon. Members may signify objections to Government guarantees for which no statutory authority exists.”

In so doing, he flagged up a scandal in the making, but few fellow MPs noticed. Flynn asked a clarificatory question to the energy minister, by now Mike O’Brien, (in the newly formed Department for Energy and Climate change, headed by Ed Miliband as Secretary of State).

Specifically, he enquired on what dates between 14th July and 6th October 2008 Ministers or officials of his Department met officials of the NDA to discuss the indemnification of the successful bidder for the PBO chosen to manage Sellafield, and what meetings his Department and its predecessor had had with the European Commission on the compliance with state aid rules of the Government accepting an indemnification for Sellafield.

Mike O’Brien told him: “There were no meetings between 14 July and 6 October 2008 between the NDA and Ministers or officials of BERR about the indemnity for the successful bidder for the Sellafield PBO … There have been no meetings with the European Commission on this issue. As a normal commercial arrangement involving no subsidy for the new PBO the proposed indemnity does not raise any State aid concerns.” (Hansard, 11 Nov 2008: Column 1143-4W.)

‘It’s all a ludicrous conspiracy theory

Perhaps ministers believed there were no subsidy concerns, but there were a raft of other very worrying, unresolved concerns. To air these, Flynn secured an unusual Parliamentary debate, held in Westminster Hall on 19 November 2008, under the headline: ‘Nuclear Industry Finance’ (Hansard, 19 Nov 2008: Column 119WH)

Mr Flynn was dismissed by Mike O’Brien as a conspiracy theorist asserting that “his concoction of conspiracy theory, innuendo and hyperbole has reached new heights in the House”, further telling MPs that Flynn had “exaggerated, went way over the top in his condemnations.”

Mr Flynn’s Labour colleague, Jamie Reed – who then, as now, represented the Copeland constituency, which includes Sellafield – chipped in with the observation that Mr Flynn’s exposure was an “incoherent concoction”. (Hansard, 19 Nov 2008: Column 125WH)

On 13 th January, after the Sellafield contact cancellation, the prodigal MP Jamie Reed, pronounced to his local paper, The Whitehaven News, that  “If the contract has been terminated, it’s the right decision: both inevitable and overdue … and common sense, operational sense and business sense has now prevailed. The site will move on from this and improve. This decision is in the best interests of the industry, the site workforce and my constituents.”

The Ecologist’s readers may judge for themselves, now that the current energy secretary has sacked NMP from their £22 billion contract, who was exaggerating – and whether or not Mr Flynn’s criticisms were coherent.

Freedom of Information request spills the beans

Just before Christmas in 2008, the NDA delivered to my inbox 140 pages of internal memos, emails and other documentation concerning how the Sellafield contract had been awarded – after a protracted battle over disclosure for many months.

Many of the documents were very heavily censored prior to release with whole pages, and the names of most of the officials involved had been systematically blanked out.

Nonetheless, they included buried in the pages released, the extraordinary revelation that BERR, and the NDA, wanted to go ahead with awarding the deal to NMP, by avoiding Parliamentary scrutiny and circumventing democratic oversight, detailing how the deception of Parliament was to be effected. It was a clear scandal.

The collusion between Government and the NDA on behalf of the private consortium, and manifestly against the public interest of the taxpayer, was revealed on 4th January 2009 in The Independent on Sunday – with my detailed assistance – in an article by Geoffrey Lean, ‘Officials plotted Sellafield cover-up: MPs were denied the chance to challenge sweetener to private firm’s nuclear deal‘:

“A rushed timetable was drawn up which involved naming a preferred (PBO) bidder for the contract on 11 July 2008 and signing a transitional agreement on 6 October 2008. But this clashed with the long parliamentary summer recess, which ran from late July to the very day set aside for the signing.

“If the Government were to stick to its speeded-up timetable, the documents say, ‘the very earliest date’ in which the minute could be laid before Parliament would be 14 July, shortly before the recess began on the 22nd.

“Determined not to slow down the handover, the Government decided to reduce the period in which MPs could object. On 26 March, an official whose name and department has been blanked out emailed the official Nuclear Decommissioning Authority (NDA) to stress the requirement to ‘shorten the 14 working parliamentary days that an indemnity would normally need before it can become effective’.

“The official added: ‘To get this down to five days, we will need to muster some persuasive arguments and I wondered where you had got to on assembling these.’ Two days later he was sent a ‘first draft’ of the argument including an assertion that the ‘vulnerability of Sellafield operations is already seen as a significant safety risk’.

Any time at all for MPs’ scrutiny is too long

“But by early June [2008], the idea of giving MPs any time at all to object had been abandoned. Another email to the NDA, from apparently the same blanked-out official, reported a ‘conclusion’ that a letter should merely be written to Edward Leigh MP, the chairman of the House of Commons Public Accounts Committee, ‘rather than go for a shorter notice period to the House’.

Thus a minute ‘explaining what has happened’ would be laid before MPs only ‘when Parliament reconvenes in the autumn’, by which time it would be too late to raise objections. On 14 July, the then energy minister Malcolm Wicks duly wrote to Mr Leigh; he did not object and the indemnity went into force before MPs knew about it.

“Other confidential documents, received after two Freedom of Information Act applications, divulge that three local Councils in Somerset asked for £750,000 to fund a planning officer and legal advice from companies that want to build nuclear power stations in their areas, raising questions about conflicts of interest, and that the officially neutral NDA considered coming out in favour of new reactors.”

Fast forward to the Coalition’s governance of Sellafield: Mr Flynn tabled another EDM, number 1048, two years ago, on 6 February 2013, which included the observation:

“DECC were questioned on the probity of such huge sums being awarded (to NMP) without Parliamentary scrutiny; recalls an earlier EDM 2321 on Parliamentary Oversight of Sellafield Indemnification tabled on 22 October 2008 observed accurately that the agreement would privatise the profits of the Sellafield management contract leaving the potentially multi-billion pound liabilities with taxpayers; acknowledges the subsequent release of internal memoranda and emails between DECC and NDA officials which expose the deliberate cover up from Parliament.”

A damning critique hidden from Parliament

In the summer of 2013, I submitted a Freedom of Information Request to the NDA for any internal review they had conducted on the performance of Nuclear Management Partners, who had been controversially been awarded the PBO management contract for Sellafield.

Finally, following the Coalition announcement that the NDA was extending the NMP PBO contract worth several more billions, the Public Accounts committee – now chaired by former Labour minister, Margaret Hodge – announced it would investigate the extended contract.

Then, after initially turning down my FOI request, on appeal, NDA conceded, and sent me a copy late on a Friday afternoon in early November, just before the PAC hearing on the following Monday with the NDA and DECC officials on Sellafield.

After reading the explosive criticisms contained in the internal evaluation by auditor, KPMG I forwarded it to Mrs Hodge, suggesting she might raise it with the PAC witnesses. Here is a transcript of what happened in the opening of the hearing on 4 November, as published the following day:

Q9 Chair (Mrs Hodge): “On the KPMG report, which we only got this morning, my understanding is that that was never shared with the NAO. Why not?”

John Clarke (NDA CEO): “The KPMG report was only completed very recently.”

Chair: “No, you had a copy of it in September.”

John Clarke: “We had a draft copy of it in September.”

Q10 Chair: “Well, we only got it this morning because of a freedom of information request. The final copy has a September date.”

John Clarke: “We have spent a considerable period of time redacting what we believe was commercially sensitive information.”

Q11 Chair: “That information was absolutely pertinent as to whether or not you took the view on whether to renew the contract. Why was that not shared with the NAO, even in draft form? I do not know whether you want to comment, Amyas.”

Amyas Morse, National Audit Office chief executive: “It would have been illuminating, knowing that we were producing a follow-up report. It certainly would have been illuminating to know of the existence of this report. I have carefully checked with my staff. As far as we know, we did not know of its existence, let alone having seen it.”

John Clarke: “There was certainly no intent to keep it secret. There was a lot of talk about the fact that we were producing it. It is worth pointing out that KPMG’s report assessed the performance of the site over a wide period of time. It was not advising us on the right course of action.”

Q12 Chair: “I understand that. The report, which I have only just shared with my colleagues on the Committee, is a terrible indictment of the contract: it says that progress on major projects within legacy ponds and silos, which no doubt we will come to, ‘is behind schedule and has exceeded … cost estimates. It appears this is principally attributable to SL’, Sellafield Ltd, ‘often as a result of poor project management … whilst savings have been made, overall schedule progress has not met PP11 targets, which over time risks costing more than efficiency savings generated.’

“On Sellafield Ltd’s capability, it says that ‘there remain continued deficiencies in project management, supply chain management and resource allocation’. We then go on to leadership, where there has been a ‘high turnover of SL executive secondees and a predominantly reactive response to issues.’

“Governance ‘does not appear to be effective or unified.’ On alignment, ‘parties in the PBO model are not aligned in their objectives, with fractures evident in many relationships due to complexity, competing priority and contractual tensions’. Interfaces ‘do not deliver’, incentives do not work, there is no appetite for risk and there is no stakeholder confidence. I cannot see anything good in that.

John Clarke: “Essentially, the comments about performance fall into three categories. There is the inherent nature of Sellafield itself, with the complexities that it presents. The Major Projects Authority came in to review it recently, and their conclusion was that Sellafield presents unique technological project management and leadership challenges unparalleled anywhere.

“So there is the inherent nature of the beast that is Sellafield. Many of the comments you related there relate to the capability of Sellafield Ltd itself. Sellafield Ltd is the enduring entity, the site licence company, the licence holder and the environmental-“

Chair: “It is wholly owned by NMP.”

John Clarke: “Yes it is, for the duration of the contract. But the 10,000 people work for Sellafield Ltd. One of the things we have asked NMP to do-“

Chair: “NMP is responsible.”

John Clarke: “We have asked NMP to improve the capability for Sellafield Ltd.”

Q13 Chair: “What have you been doing for the last four to five years?”

John Clarke: “I would say that the rate of improvement in that capability has been less than we would have wished. There have been improvements in capability, but not as much as we would have wished for.”

DECC Permanent Secretary Stephen Lovegrove told the PAC: “The Department knew of the KPMG report. I did not personally, but officials had sight of it and read it.”

Mrs Hodge observed: “It’s an appalling waste of public money. It’s like scattering confetti. Time extends and extends. I have looked at this two or three times now and every time I look at it the cost goes up – not in hundreds of millions, but in billions.”

NMP: contrite all the way to the bank

Indeed so. A month later the NMP bosses themselves were instructed to appear before an enraged PAC. It was a veritable political mauling of the NMP witnesses inside the committee’s coliseum.

Tom Zarges, the chair of NMP, backed up again by the hapless NDA boss John Clarke, and Sellafield Ltd’s MD Tony Price, told the MPs that he was “humbled and truly sorry” for mistakes made during his firm’s five-year tenure at Sellafield, and vowed that they would “not be repeated in the future.”

Mrs Hodge observed she was “bewildered” the NDA had recently awarded NMP a five-year extension to run the nuclear site, adding caustically: “Mega-bucks are paid to NMP in fees, yet NMP does nothing [to address issues] other than waiting for the NDA to chivvy you along.”

Mr Zarges defensively said: “While we have had achievements, we are not satisfied with these. We are a long way from satisfied … If we have not learned from these experiences, we are not doing our job.”

Meanwhile Mr Clarke conceded that he has been “disappointed with elements of NMP’s performance … The quality of leadership has been less than what we would wish for, and we have been disappointed with elements of performance. But to continue with the contract will provide a better outcome than the alternatives.”

Two months later, on 4 February 2014, the PAC published its devastating report ‘Managing risk at Sellafield, which inter alia concluded the NMP contract for Sellafield achieved “little improvement” commercially “for extra money spent”.

Another conclusion was that “The use of cost reimbursement contracts for Sellafield Limited and its subcontractors means the financial risks are borne by the taxpayer. This contracting approach may be the best option where costs are very uncertain.

“However, as project and programme plans firm up and the lifetime plan becomes more robust, it should be possible to move away from cost reimbursement contracts. The Authority should determine how and when it will have achieved sufficient certainty to expect Sellafield Limited to transfer risk down the supply chain on individual projects and then to reconsider its contracting approach for the site as a whole.”

An appalling waste of public money

One re-imbursement was not so much financially huge as extraordinary in its absurdity: an NMP executive claimed £714 taxi fare for a family cat to go to an airport! And was paid (although later it was recovered after a public uproar).

Margaret Hodge proclaimed the contract was an “appalling waste of public money … The cost of one project soared from £387 million to £729 million in 18 months; another rose from £341 million to £750 million, with completion delayed for six years, in much the same short period.”

The most damning conclusion read: “In 2011-12, the Authority paid out £54 million in fees, £17 million for ‘reachback’ staff and £11 million for executive staff seconded from Nuclear Management Partners. Sellafield Limited also awarded contracts to Nuclear Management Partners’ constituent companies worth some £54 million in 2011-12.

“That means, in effect, that those who let contracts awarded their own constituent companies contracts, which raises concerns about fair competition and value. The Authority should ensure all payments are linked to the value delivered and that payments are not made where companies have failed to deliver. It should also routinely provide assurance on the operation of its controls over payments for Nuclear Management Partners’ constituent companies.”

Tom Zarges nevertheless maintained: “The first term of our contract has been characterised by many successes but also a number of disappointments and areas for improvement. Our job now is to build on our experience of the last five years to safely and reliably deliver our customer’s mission, while further accelerating the pace of change and providing value for money to the NDA, Government and the UK tax payer.”

An NDA statement insisted that “[we] now have a much better understanding of the issues and complexities that exist at the site and the challenges that lie ahead. Whilst progress has been made on a number of fronts we will require significant improvements during the next contract period.

“We have had extensive discussions with NMP and made clear where these improvements must be made. We will continue to monitor performance closely and remain focused on achieving our goal of safe, effective, value for money decommissioning at Sellafield.”

Contract termination ‘an operational matter’

A few weeks later, the then energy minister, Michael Fallon, since promoted to Defence Secretary, told Paul Flynn in a written answer:

“The contract review at the first break point, and the decision to continue with the contract into a second five year period, was an operational matter for the NDA. The NDA reached its decision based on a thorough review of performance in the first period of the contract and consideration of all available options.

“The Government endorsed the NDA’s decision on the basis that it represents the best way forward at this time, giving NMP the opportunity to build on the progress made in the first five years of its contract for Sellafield Ltd (it has met some 90% of its targets to date and safety at the site has improved), address weaker areas of performance, and make further real progress in this next five year term.” (Hansard, 24 Feb 2014 : Column 142W)

On the day Ed Davey announced the big U-turn, by chance Treasury Permanent Secretary, Sir Nicholas Macpherson, appeared before the Parliamentary Public Administration Select Committee inquiry on ‘Whitehall: capacity to address future challenges’, to be challenged by committee member Paul Flynn, asking:

“Just as a general principle, are you happy for the public purse to take all the risk, as I pointed out as clearly as possible in 2008, and for the private company, a foreign company, to take any profit that will come out?  Is that an abiding effort for the Treasury?”

Sir Nicholas Macpherson answered: “Put in those terms, I would never be happy with any contract like that. Ensuring that risk is borne in the right place is one of the biggest lessons of the financial crisis.  I do not want to get into this individual issue, because I am not sufficiently informed about it.”

Meanwhile, John Robertson MP, Labour chair of the All Party Nuclear Power Group (a nuclear cheerleader set-up) said on 16 January, three days after Sellafield management were sacked:

“The industry really has turned Parliament around. We do now have a political House singing from the same hymn sheet on nuclear power. We need to work hard to keep it that way!” 

In so saying, he revealed just how out of touch the pro-nuclear cheer-leaders in Parliament really are.

NMP paid shareholders 145m in dividends

The Sunday Times Business section reported on 18 January that the failed NMP was paid its shareholders £145.1m in dividends during its tenure, starting with a £24.5m payout in 2009-10. The terms of its deal entitled it to £50m a year in fees from the NDA, “dependent on performance”.

NMP said last week it was “surprised and disappointed” to be ditched and had improved its performance and saved taxpayers £650m during its tenure. It declined to comment on the dividends.

 

 


 

David Lowry is an environmental policy and research consultant who has been following the unfolding Sellafield imbroglio for over 10 years.

 




385924

2015 will see nuclear dream fade as wind and solar soar Updated for 2026





With nuclear power falling ever further behind renewables as a global energy source, and as the price of oil and gas falls, the future of the industry in 2015 and beyond looks bleak.

Renewables now supply 22% of global electricity and nuclear only 11% – a share that is gradually falling as old plants close and fewer new ones are commissioned.

New large-scale installations of wind and solar power arrays continue to surge across the world. Countries without full grids and power outages, such as India, increasingly find that wind and solar are quick and easy ways to bring electricity to people who have previously had no supply.

Developed countries, meanwhile, faced with reducing carbon dioxide emissions, find that the cost of both these renewable technologies is coming down substantially.

Subsidies for wind and solar are being reduced and, in some cases, will disappear altogether in the next 10 years.

Renewables’ enviable speed of installation

The other advantage that renewables have is speed of installation. Solar panels, once manufactured, can be installed on a rooftop and be in operation in a single day. Wind turbines can be put up in a week.

Nuclear power, on the other hand, continues to get more expensive. In China and Russia, costs are not transparent, and even in democracies they hard to pin down. But it is clear that they are rising dramatically.

Building of the proposed twin European Pressurised Water reactors, called Hinkley Point C, in Britain’s West Country is due to start in 2015, but the price has risen several times already. Estimated construction costs have now jumped from £16 billion to £24 billion – before the first concrete has even been poured.

The other problem with nuclear is the time frame. Originally, Hinkley Point C was due to be completed by 2018. This has now slipped to 2024, but even this is optimistic judging by the performance of the two prototypes in Finland and France, both of which are late and over budget.

The Finnish plant was due to open in 2009, but is still at least three years from commissioning. The French plant is five years overdue.

In many countries, there are plans on paper for new nuclear stations, and China, South Korea and India are among those that are continuing to build them. Other countries, particularly where private capital is needed to finance them, are putting their plans on hold.

Extend life

The US, which still has the largest number of reactors of any country in the world, is opting instead to extend the life of its plants. Many operators are considering applying for such extensions from 60 to 80 years.

Provided they are up to modern safety standards, there seems no barrier to this. However experience shows that as reactors age they become less reliable – both requiring scheduled maintenance, and prone to sudden unexpected cut-outs that place huge demands on power grids.

Many other countries, including the UK, are also extending the lives of their plants as long as possible, however, so the industry won’t be disappearing any time soon.

But one of the key problems for the nuclear sector is that reactors have been designed to be at full power all of the time. With renewables taking an increasing share of the market, a combination of nuclear, wind and solar can produce more electricity than required – leaving a problem of what to turn off, or how to use the surplus power.

A way round this problem being developed in Britain is large, strategically-based batteries. A five-megawatt battery, the largest in Europe, has just been commissioned in Leighton Buzzard, Bedfordshire, in the middle of England.

This is charged up when there is too much power in the grid, and releases its energy when there is a surge in demand.

If, during a two-year trial, this works to smooth the peaks and troughs of demand, and cuts the costs of switching on expensive gas turbines, then a network of batteries will be installed across the country to harvest the intermittent supplies of renewables.

The only bright spot for nuclear at the moment is the development of small nuclear reactors. These are from 30 megawatts upwards and are designed to be built in a factory and assembled on site – a bit like wind turbines are.

These can be installed singly or in a series, depending on the demand. Their two greatest selling points are that they would be good in remote locations far from other power sources, and are said to be much safer than their larger cousins.

Price tag

However, a drawback is the price tag of around $3 billion dollars. Both the US and UK are supporting private firms in research and development, but commercial operation is a long way off.

Whether a small nuclear power station would be any more welcomed than a wind or solar farm to provide power in a neighbourhood is a question still to be tested.

Nuclear enthusiasts – and there are still many in the political and scientific world – continue to work on fast breeder reactors, fusion and thorium reactors, heavily supported by governments who still believe that one day the technology will be the source of cheap and unlimited power. But, so far, that remains a distant dream.

In the meantime, investors are increasingly sceptical about putting their money into nuclear – whereas renewables promise an increasingly rapid return on investment, and may get a further boost if the governments of the world finally take climate change seriously.

 


 

Paul Brown writes for Climate News Network.

 

 




388423

Fukushima and the institutional invisibility of nuclear disaster Updated for 2026





Speaking at press conference soon after the accident began, the UK government’s former chief science advisor, Sir David King, reassured journalists that the natural disaster that precipitated the failure had been “an extremely unlikely event”.

In doing so, he exemplified the many early accounts of Fukushima that emphasised the improbable nature of the earthquake and tsunami that precipitated it.

A range of professional bodies made analogous claims around this time, with journalists following their lead. This lamentation, by a consultant writing in the New American, is illustrative of the general tone:

” … the Fukushima ‘disaster’ will become the rallying cry against nuclear power. Few will remember that the plant stayed generally intact despite being hit by an earthquake with more than six times the energy the plant was designed to withstand, plus a tsunami estimated at 49 feet that swept away backup generators 33 feet above sea level.”

The explicit or implicit argument in all such accounts is that the Fukushima’s proximate causes are so rare as to be almost irrelevant to nuclear plants in the future. Nuclear power is safe, they suggest, except against the specific kind of natural disaster that struck Japan, which is both a specifically Japanese problem, and one that is unlikely to re-occur, anywhere, in any realistic timeframe

An appealing but tenuous logic

The logic of this is tenuous on various levels. The ‘improbability’ of the natural disaster is disputable, for one, as there were good reasons to believe that neither the earthquake nor the tsunami should have been surprising. The area was well known to be seismically active after all, and the quake, when it came, was only the fourth largest of the last century.

The Japanese nuclear industry had even confronted its seismic under-preparedness four years earlier, on 16 July 2007, when an earthquake of unanticipated magnitude damaged the Kashiwazaki-Kariwa nuclear plant.

This had led several analysts to highlight Fukushima’s vulnerability to earthquakes, but officials had said much the same then as they now said in relation to Fukushima. The tsunami was not without precedent either.

Geologists had long known that a similar event had occurred in the same area in July 869. This was a long time ago, certainly, but the data indicated a thousand-year return cycle.

Several reports, meanwhile, have suggested that the earthquake alone might have precipitated the meltdown, even without the tsunami – a view supported by a range of evidence, from worker testimony, to radiation alarms that sounded before the tsunami. Haruki Madarame, the head of Japan’s Nuclear Safety Commission, has criticised Fukushima’s operator, TEPCO, for denying that it could have anticipated the flood.

The claim that Japan is ‘uniquely vulnerable’ to such hazards is similarly disputable. In July 2011, for instance, the Wall Street Journal reported on private NRC emails showing that the industry and its regulators had evidence that many US reactors were at risk from earthquakes that had not been anticipated in their design.

It noted that the regulator had taken very little or no action to accommodate this new understanding. As if to illustrate their concern, on 23 August 2011, less than six months after Fukushima, North Anna nuclear plant in Mineral, Virginia, was rocked by an earthquake that exceeded its design-basis predictions.

Every accident is ‘unique’ – just like the next one

There is, moreover, a larger and more fundamental reason to doubt the ‘unique events or vulnerabilities’ narrative, which lies in recognising its implicit assertion that nuclear plants are safe against everything except the events that struck Japan.

It is important to understand that those who assert that nuclear power is safe because the 2011 earthquake and tsunami will not re-occur are, essentially, saying that although the industry failed to anticipate those events, it has anticipated all the others.

Yet even a moment’s reflection reveals that this is highly unlikely. It supposes that experts can be sure they have comprehensively predicted all the challenges that nuclear plants will face in its lifetime (or, in engineering parlance: that the ‘design basis’ of every nuclear plant is correct) – even though a significant number of technological disasters, including Fukushima, have resulted, at least in part, from conditions that engineers failed to even consider.

As Sagan points out: “things that have never happened before, happen all the time”. The terrorist attacks of 9/11 are perhaps the most iconic illustration of this dilemma but there are many others.

Perrow (2007) painstakingly explores a landscape of potential disaster scenarios that authorities do not formally recognise, but it is highly unlikely that he has considered them all.

More are hypothesised all the time. For instance, researchers have recently speculated about the effects of massive solar storms, which, in pre-nuclear times, have caused electrical systems over North America and Europe to fail for weeks at a time.

Human failings that are unrepresentative and / or correctable

A second rationale that accounts of Fukushima invoke to establish that accidents will not re-occur focuses on the people who operated or regulated the plant, and the institutional culture in which they worked. Observers who opt to view the accident through this lens invariably construe it as the result of human failings – either error, malfeasance or both.

The majority of such narratives relate the failings they identify directly to Fukushima’s specific regulatory or operational context, thereby portraying it as a ‘Japanese’ rather than a ‘nuclear’ accident.

Many, for instance, stress distinctions between US and Japanese regulators; often pointing out that the Japanese nuclear regulator (NISA) was subordinate to the Ministry of Trade and Industry, and arguing that this created a conflict of interest between NISA’s responsibilities for safety and the Ministry’s responsibility to promote nuclear energy.

They point, for instance, to the fact that NISA had recently been criticised by the International Atomic Energy Agency (IAEA) for a lack of independence, in a report occasioned by earthquake damage at another plant. Or to evidence that NISA declined to implement new IAEA standards out of fear that they would undermine public trust in the nuclear industry.

Other accounts point to TEPCO, the operator of the plant, and find it to be distinctively “negligent”. A common assertion in vein, for instance, is that it concealed a series of regulatory breaches over the years, including data about cracks in critical circulation pipes that were implicated in the catastrophe.

There are two subtexts to these accounts. Firstly, that such an accident will not happen here (wherever ‘here’ may be) because ‘our’ regulators and operators ‘follow the rules’. And secondly, that these failings can be amended so that similar accidents will not re-occur, even in Japan.

Where accounts of the human failings around Fukushima do portray those failings as being characteristic of the industry beyond Japan, the majority still construe those failings as eradicable.

In March 2012, for instance, the Carnegie Endowment for International Peace issued a report that highlighted a series of organisational fallings associated with Fukushima, not all of which they considered to be meaningfully Japanese.

Nevertheless, the report – entitled ‘Why Fukushima was preventable’ – argued that such failings could be resolved. “In the final analysis”, it concluded, “the Fukushima accident does not reveal a previously unknown fatal flaw associated with nuclear power.”

The same message echoes in the many post-Fukushima actions and pronouncements of nuclear authorities around the world promising managerial reviews and reforms, such as the IAEA’s hastily announced ‘five-point plan’ to strengthen reactor oversight.

Myths of exceptionality

As with the previous narratives about exogenous hazards, however, the logic of these ‘human failure’ arguments is also tenuous. Despite the editorial consternation that revelations about Japanese malfeasance and mistakes have inspired, for instance, there are good reasons to believe that neither were exceptional.

It would be difficult to deny that Japan had a first-class reputation for managing complex engineering infrastructures, for instance. As the title of one op-ed in the Washington Post puts it: “If the competent and technologically brilliant Japanese can’t build a completely safe reactor, who can?”

Reports of Japanese management failings must be considered in relation to the fact that reports of regulatory shortcomings, operator error, and corporate malfeasance abound in every state with nuclear power and a free press.

There also exists a long tradition of accident investigations finding variations in national safety practices that are later rejected on further scrutiny.

When Western experts blamed Chernobyl on the practices of Soviet nuclear industry, for example, they unconsciously echoed Soviet narratives highlighting the inferiority of Western safety cultures to argue that an accident like Three Mile Island could never happen in the USSR.

Arguments suggesting that ‘human’ problems are potentially solvable are similarly difficult to sustain, for there are compelling reasons to believe that operational errors are an inherent property of all complex socio-technical systems.

Close accounts of even routine technological work, for instance, routinely find it to be necessarily and unavoidably ‘messier’ in practice than it appears on paper.

Thus both human error and non-compliance are ambiguous concepts. As Wynne (1988: 154) observes: “… the illegitimate extension of technological rules and practices into the unsafe or irresponsible is never clearly definable, though there is ex-post pressure to do so.” The culturally satisfying nature of ‘malfeasance explanations’ should, by itself, be cause for circumspection.

These studies undermine the notion of ‘perfect rule compliance’ by showing that even the most expansive stipulations sometimes require interpretation and do not relieve workers of having to make decisions in uncertain conditions.

In this context we should further recognise that accounts that show Fukushima, specifically, was preventable are not evidence that nuclear accidents, in general, are preventable.

To argue from analogy: it is true to say that any specific crime might have been avoided (otherwise it wouldn’t be a crime), but we would never deduce from this that crime, the phenomenon, is eradicable. Human failure will always be present in the nuclear sphere at some level, as it is in all complex socio-technical systems.

And, relative to the reliability demanded of nuclear plants, it is safe to assume that this level will always be too high or, at least, that our certainty regarding it will be too low. While human failures and malfeasance are undoubtedly worth exploring, understanding and combating, therefore, we should avoid the conclusion that they can be ‘solved’.

Plant design is unrepresentative and/or correctable

Parallel to narratives about Fukushima’s circumstances and operation, outlined above, are narratives that emphasise the plant itself.

These limit the relevance of accident to the wider nuclear industry by arguing that the design of its reactor (a GE Mark-1) was unrepresentative of most other reactors, while simultaneously promising that any reactors that were similar enough to be dangerous could be rendered safe by ‘correcting’ their design.

Accounts in this vein frequently highlight the plant’s age, pointing out that reactor designs have changed over time, presumably becoming safer. A UK civil servant exemplified this narrative, and the strategic decision to foreground it, in an internal email (later printed in the Guardian [2011]), in which he asserted that

“We [The Department of Business, Innovation and Skills] need to … show that events in Japan, whilst looking dramatic, are all part of the safety processes of this 1960’s reactor.”

Stressing the age of the reactor in this way became a mainstay of Fukushima discourse in the disaster’s immediate aftermath. Guardian columnist George Monbiot (2011b), for instance, described Fukushima as “a crappy old plant with inadequate safety features”.

He concluded that its failure should not speak to the integrity of later designs, like that of the neighboring plant, Fukushima ‘Daini’, which did not fail in the tsunami. “Using a plant built 40 years ago to argue against 21st-century power stations”, he wrote, “is like using the Hindenburg disaster to contend that modern air travel is unsafe.”

Other accounts highlighted the reactor’s design but focused on more generalisable failings, such as the “insufficient defense-in-depth provisions for tsunami hazards” (IAEA 2011a: 13), which could not be construed as indigenous only to the Mark-1 reactors or their generation.

The implication – we can and will fix all these problems

These failings could be corrected, however, or such was the implication. The American Nuclear Society set the tone, soon after the accident, when it reassured the world that: “the nuclear power industry will learn from this event, and redesign our facilities as needed to make them safer in the future.”

Almost every official body with responsibility for nuclear power followed in their wake. The IAEA, for instance, orchestrated a series of rolling investigations, which eventually cumulated in the announcement of its ‘Action Plan on Nuclear Safety’ and a succession of subsequent meetings where representatives of different technical groups could pool their analyses and make technical recommendations.

The groups invariably conclude that “many lessons remain to be learned” and recommend further study and future meetings. Again, however, there is ample cause for scepticism.

Firstly, there are many reasons to doubt that Fukushima’s specific design or generation made it exceptionally vulnerable. As noted above, for instance, many of the specific design failings identified after the disaster – such as the inadequate water protection around reserve power supplies – were broadly applicable across reactor designs.

And even if the reactor design or its generation were exceptional in some ways, that exceptionalism is decidedly limited. There are currently 32 Mark-1 reactors in operation around the world, and many others of a similar age and generation, especially in the US, where every reactor currently in operation was commissioned before the Three Mile Island accident in 1979.

Secondly, there is little reason to believe that most existing plants could be retrofitted to meet all Fukushima’s lessons. Significantly raising the seismic resilience of a nuclear plant, for instance, implies such extensive design changes that it might be more practical to decommission the entire structure and rebuild from scratch.

This perhaps explains why progress has been halting on the technical recommendations. It might be true that different, or more modern reactors are safer, therefore, but these are not the reactors we have.

In March 2012, the NRC did announce some new standards pertaining to power outages and fuel pools – issuing three ‘immediately effective’ orders requiring operators to implement some of the more urgent recommendations. The required modifications were relatively modest, however, and ‘immediately’ in this instance meant ‘by December 31st 2016’.

Meanwhile, the approvals for four new reactors the NRC granted around this time contained no binding commitment to implement the wider lessons it derived from Fukushima. In each case, the increasingly marginalised NRC chairman, Gregory Jaczko, cast a lone dissenting vote. He was also the only committee member to object to the 2016 timeline.

Complex systems’ ability to keep on surprising

Finally, and most fundamentally, there are many a priori reasons to doubt that any reactor design could be as safe as risk analyses suggest. Observers of complex systems have outlined strong arguments for why critical technologies are inevitably prone to some degree of failure, whatever their design.

The most prominent such argument is Perrow’s Normal Accident Theory (NAT), with its simple but profound probabilistic insight that accidents caused by very improbable confluences of events (that no risk calculation could ever anticipate) are ‘normal’ in systems where there are many opportunities for them to occur.

From this perspective, the ‘we-found-the-flaw-and-fixed-it’ argument is implausible because it offers no way of knowing how many ‘fateful coincidences’ the future might hold.

‘Lesson 1’ of the IAEA’s preliminary report on Fukushima is that the ” … design of nuclear plants should include sufficient protection against infrequent and complex combinations of external events.”

NAT explains why an irreducible number of these ‘complex combinations’ must be forever beyond the reach of formal analysis and managerial control.

A different way of demonstrating much the same conclusion is to point to the fundamental epistemological ambiguity of technological knowledge, and to how the significance of this ambiguity is magnified in complex, safety-critical systems due to the very high levels of certainty these systems require.

Judgements become more significant in this context because they have to be absolutely correct. There is no room for error bars in such calculations . It makes little sense to say that we are 99% certain a reactor will not explode, but only 50% sure that this number is correct.

Perfect safety can never be guaranteed

Viewed from this perspective, it becomes apparent that complex systems are likely to be prone to failures arising from erroneous beliefs that are impossible to predict in advance, which I have elsewhere called ‘Epistemic Accidents’.

This is essentially to say that the ‘we-found-the-flaw-and-fixed-it’ argument cannot guarantee perfect safety because it offers no way of knowing how many new ‘lessons’ the future might hold.

Just as it is impossible for engineers and regulators to know for certain that they have anticipated every external event a nuclear plant might face, so it is impossible for them know that their understanding of the system itself is completely accurate.

Increased safety margins, redundancy, and defense-in-depth undoubtedly might improve reactor safety, but no amount of engineering wizardry can offer perfect safety, or even safety that is ‘knowably’ of the level that nuclear plants require. As Gusterson (2011), puts it: ” … the perfectly safe reactor is always just around the corner.”

Nuclear authorities sometimes concede this. After the IAEA ’s 2012 recommendations to pool insights from the disaster, for instance, the meeting’s chairman, Richard Meserve, summarised: “In the nuclear business you can never say, ‘the task is done’.”

Instead they promise improvement. “The Three Mile Island and Chernobyl accidents brought about an overall strengthening of the safety system”, Meserve continued. “It is already apparent that the Fukushima accident will have a similar effect.”

The real question, however, is when will the safety be strong enough? As it wasn’t after Three Mile Island or Chernobyl, why should Fukushima be any different?

The reliability myth

This is all to say, in essence, that it is misleading to assert that an accident of Fukushima’s scale will not re-occur. For there are credible reasons to believe that the reliability required of reactors is not calculable, and there are credible reasons to believe that the actual reliability of reactors is much lower than is officially calculated.

These limitations are clearly evinced by the actual historical failure rate of nuclear reactors. Even the most rudimentary calculations show that civil nuclear accidents have occurred far more frequently than official reliability assessments have predicted.

The exact numbers vary, depending on how one classifies ‘an accident’ (whether Fukushima counts as one meltdown or three, for example), but Ramana (2011) puts the historical rate of serious meltdowns at 1 in every 3,000 reactor years, while Taebi et al. (2012: 203fn) put it at somewhere between 1 in every 1,300 to 3,600 reactor years.

Either way, the implied reliability is orders of magnitude lower than assessments claim.

In a recent declaration to a UK regulator, for instance, Areva, a prominent French nuclear manufacturer, invoked probabilistic calculations to assert that the likelihood of a “core damage incident” in its new ‘EPR’ reactor were of the order of one incident, per reactor, every 1.6 million years (Ramana 2011).

Two: the accident was tolerable

The second basic narrative through which accounts of Fukushima have kept the accident from undermining the wider nuclear industry rests on the claim that its effects were tolerable – that even though the costs of nuclear accidents might look high, when amortised over time they are acceptable relative to the alternatives.

The ‘accidents are tolerable’ argument is invariably framed in relation to the health effects of nuclear accidents. “As far as we know, not one person has died from radiation”, Sir David King told a press conference in relation to Fukushima, neatly expressing a sentiment that would be echoed in editorials around the world in the aftermath of the accident.

“Atomic energy has just been subjected to one of the harshest of possible tests, and the impact on people and the planet has been small”, concluded Monbiot in one characteristic column.

“History suggests that nuclear power rarely kills and causes little illness”, the Washington Post reassured its readers (Brown 2011). See also eg McCulloch (2011); Harvey (2011). “Fukushima’s Refugees Are Victims Of Irrational Fear, Not Radiation”, declared the title of an article in Forbes (Conca 2012).

In its more sophisticated forms, this argument draws on comparisons with other energy alternatives. A 2004 study by the American Lung Association argues that coal-fired power plants shorten the lives of 24,000 people every year.

Chernobyl, widely considered to be the most poisonous nuclear disaster to date, is routinely thought to be responsible for around 4,000 past or future deaths.

Even if the effects of Fukushima are comparable (which the majority of experts insist they are not), then by these statistics the human costs of nuclear energy seem almost negligible, even when accounting for its periodic failures.

Such numbers are highly contestable, however. Partly because there are many more coal than nuclear plants (a fairer comparison might consider deaths per kilowatt-hour). But mostly because calculations of the health effects of nuclear accidents are fundamentally ambiguous.

Chronic radiological harm can manifest in a wide range of maladies, none of which are clearly distinguishable as being radiologically induced – they have to be distinguished statistically – and all of which have a long latency , sometimes of decades or even generations.

How many died? It all depends …

So it is that mortality estimates about nuclear accidents inevitably depend on an array of complex assumptions and judgments that allow for radically divergent – but equally ‘scientific’ – interpretations of the same data. Some claims are more compelling than others, of course, but ‘truth’ in this realm does not ‘shine by its own lights’ as we invariably suppose it ought.

Take, for example, the various studies of Chernobyl’s mortality, from which estimates of Fukushima’s are derived. The models underlying these studies are themselves derived from data from Hiroshima and Nagasaki survivors, the accuracy and relevance of which have been widely criticised, and they require the modeller to make a range of choices with no obviously correct answer.

Modellers must select between competing theories of how radiation affects the human body, for instance; between widely varying judgments about the amount of radioactive material the accident released; and much more. Such choices are closely interlinked and mutually dependent.

Estimates of the composition and quantities of the isotopes released in the accident, for example, will affect models of their distribution, which, in conjunction with theories of how radiation affects the human body, will affect conclusions about the specific populations at risk.

This, in turn, will affect whether a broad spike in mortality should be interpreted as evidence of radiological harm or as evidence that many seemingly radiation – related deaths are actually symptomatic of something else. And so on ad infinitum: a dynamic tapestry of theory and justification, where subtle judgements reverberate throughout the system.

The net result is that quiet judgrments concerning the underlying assumptions of an assessment – usually made in the very earliest stages of a study and all but invisible to most observers – have dramatic affects on its findings. The effects of this are visible in the widely divergent assertions made about Chernobyl’s death toll.

The ‘orthodox’ mortality figure cited above – no more than 4,000 deaths – comes from the 2005 IAEA-led ‘Chernobyl Forum ‘ report. Or rather, from the heavily bowdlerised press release from the IAEA that accompanied its executive summary. The actual health section of the report alludes to much higher numbers.

Yet the ‘4,000 deaths’ number is endorsed and cited by most international nuclear authorities, although it stands in stark contrast to the findings of similar investigations.

Two reports published the following year, for example, offer much higher figures: one estimating 30,000 to 60,000 cancer deaths (Fairlie & Sumner 2006 ); the other 200,000 or more (Greenpeace 2006: 10).

In 2009, meanwhile, the New York Academy of Sciences published an extremely substantive Russian report by Yablokov that raised the toll even further, concluding that in the years up to 2004, Chernobyl caused around 985,000 premature cancer deaths worldwide.

Between these two figures – 4,000 and 985,000 – lie a host of other expert estimations of Chernobyl’s mortality, many of them seemingly rigorous and authoritative. The Greenpeace report tabulates some of the varying estimates and correlates them to differing methodologies.

Science? Or propaganda?

Different sides in this contest of numbers routinely assume their rivals are actively attempting to mislead – a wide range of critics argue that most official accounts are authored by industry apologists who ‘launder’ nuclear catastrophes by dicing evidence of their human fallout into an anodyne melée of claims and counter claims.

When John Gofman, a former University of California Berkeley Professor of Medical Physics, wrote that the Department of Energy was “conducting a Josef Goebels propaganda war” by advocating a conservative model of radiation damage, for instance, his charge more remarkable for its candor than its substance.

And there is certainly some evidence for this. There can be little doubt that in the past the US government has intentionally clouded the science of radiation hazards to assuage public concerns. The 1995 US Advisory Committee on Human Radiation Experiments, for instance, concluded that Cold War radiation research was heavily sanitised for political ends.

A former AEC (NRC) commissioner testified in the early 1990s that: “One result of the regulators’ professional identification with the owners and operators of the plants in the battles over nuclear energy was a tendency to try to control information to disadvantage the anti-nuclear side.” It is perhaps more useful, however, to say they are each discriminating about the realities to which they adhere.

In this realm there are no entirely objective facts, and with so many judgements it is easy to imagine how even small, almost invisible biases, might shape the findings of seemingly objective hazard calculations.

Indeed, many of the judgements that separate divergent nuclear hazard calculations are inherently political, with the result that there can be no such thing as an entirely neutral account of nuclear harm.

Researchers must decide whether a ‘stillbirth’ counts as a ‘fatality’, for instance. They must decide whether an assessment should emphasise deaths exclusively, or if it should encompass all the injuries, illnesses, deformities and dis abilities that have been linked to radiation. They must decide whether a life ‘shortened’ constitutes a life ‘lost’.

There are no correct answers to such questions. More data will not resolve them. Researchers simply have to make choices. The net effect is that the hazards of any nuclear disaster can only be glimpsed obliquely through a distorted lens.

So much ambiguity and judgement is buried in even the most rigorous calculations of Fukushima’s health impacts that no study can be definitive. All that remains are impressions and, for the critical observer, a vertiginous sense of possibility.

Estimating the costs – how many $100s of billions?

The only thing to be said for sure is that declarative assurances of Fukushima’s low death toll are misleading in their surety. Given the intense fact-figure crossfire around radiological mortality, it is unhelpful to view Fukushima purely through the lens of health.

In fact, the emphasis on mortality might itself be considered a way of minimising Fukushima, considering that there are other – far less ambiguous – lenses through which to view the disaster’s consequences.

Fukushima’s health effects are contested enough that they can be interpreted in ways that make the accident look tolerable, but it is much more challenging to make a case that it was tolerable in other terms.

Take, for example, the disaster’s economic impact. The intense focus on the health and safety effects of Fukushima has all but eclipsed its financial consequences, yet the latter are arguably more significant and are certainly less ambiguous.

Nuclear accidents incur a vast spectrum of costs. There are direct costs relating to the need to seal off the reactor; study, monitor and mitigate its environmental fallout; resettle, compensate and treat the people in danger; and so forth.

Over a quarter of a century after Chernobyl, the accident still haunts Western Europe, where government scientists in several countries continue to monitor certain meats, and keep some from entering the food chain.

Then there is an array of indirect costs that arise from externalities, such as the loss of assets like farmland and industrial facilities; the loss of energy from the plant and those around it; the impact of the accident on tourism; and so forth. The exact economic impact of a nuclear accident is almost as difficult to estimate as its mortality, and projections differ for the same fundamental reasons.

The evacuation zone around Fukushima – an area of around 966 sq km, much of which will be uninhabitable for generations – covers 3% of Japan, a densely populated and mountainous country where only 20% of the land is habitable in the first place.

They do not differ to the same degree, however, and in contrast to Fukushima’s mortality there is little contention that its financial costs will be enormous. By November of 2013, the Japanese government had already allocated over 8 trillion yen (roughly $80 billion or £47 billion) to Fukushima’s clean-up alone – a figure that excluded the cost of decommissioning the six reactors, a process expected to take decades and cost tens of billions of dollars.

Independent experts have estimated the clean-up cost to be in the region of $500 billion (Gunderson & Caldicott 2012). These estimates, moreover, exclude most of the indirect costs outlined above, such as the disaster’s costs to food and agriculture industries, which the Japanese Ministry of Agriculture, Forestries and Fisheries (MAFF) has estimated to be 2,384.1 billion yen (roughly $24 billion).

Of these competing estimates, the higher numbers seem more plausible. The notoriously conservative report of the Chernobyl Forum estimated that the cost of that accident had already mounted to “hundreds of billions of dollars” after just 20 years, and it seems unlikely that Fukushima’s three meltdowns could cost less.

Even if we assume that Chernobyl was more hazardous than Fukushima (a common conviction that is incrementally becoming more tenuous), then it remains true that the same report projected the 30-year costs cost to Belarus alone to be US$235 billion, and that Belarus’s lost opportunities, compensation payments and clean-up expenditures are unlikely to rival Japan’s.

Considering, for instance, Japan’s much higher cost of living, its indisputable loss of six reactors and decision to at least shutter the remainder of its nuclear plants, and many other factors. The Chernobyl reactor did not even belong to Belarus – it is in what is now the Ukraine.

The nuclear disaster liability swindle

To put these figures into perspective, consider that nuclear utilities in the US are required to create an industry – wide insurance pool of only about $12 billion for accident relief, and are protected against further losses by the Price-Anderson Act, by which the US Congress has socialised the costs of any nuclear disaster.

The nuclear industry needs such extraordinary government protection in the US, as it does in all countries, because – for all the authoritative, blue-ribbon risk assessments demonstrating its safety – the reactor business, almost uniquely, is unable to secure private insurance.

The industry’s unique dependence on limited liabilities reflects the fact that no economic justification for atomic power could concede the evitability of major accidents like Fukushima and remain viable or competitive.

As Mark Cooper, the author of a 2012 report on the economics of nuclear disaster has put it:

“If the owners and operators of nuclear reactors had to face the full liability of a Fukushima-style nuclear accident or go head-to-head with alternatives in a truly competitive marketplace, unfettered by subsidies, no one would have built a nuclear reactor in the past, no one would build one today, and anyone who owns a reactor would exit the nuclear business as quickly as possible.”

 

 


 

John Downer works at the Global Insecurities Centre, School of Sociology, Politics and International Studies, Bristol University.

This article is an extract from ‘In the shadow of Tomioka – on the institutional invisibility of nuclear disaster‘, Published by the Centre for Analysis of Risk and Regulation at the London School of Economics and Political Science.

This version has been edited to include important footnote material in the main text, and exclude most references. Scholars, scientists, researchers, etc please refer to the original publication.

 

 




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All over the world, renewables are beating nuclear Updated for 2026





With many of the UK’s old nuclear power plants off-line due to faults and prospects for their ultimate replacement looking decidedly shaky, it is good that the renewable energy alternatives are moving ahead rapidly.

In 2013 nuclear supplied around 18% of UK electricity but in the third quarter of 2014, nuclear output fell 16.2% due to outages, while renewable output, which had reached 16.8% of electricity in the second quarter of 2014, was up 26%, over the previous year.

Indeed, there were periods in 2014 when wind alone met up to 15% of UK power demand, over-taking nuclear, and it even briefly achieved 24%.

What next? The financial woes of French developers Areva and EDF may mean that their £24 billion 3.4 GW Hinkley nuclear project, despite being heavily subsidised by British taxpayers and consumers, will get delayed or even halted, unless China or the Saudis bail it out.

Meanwhile, wind has reached 11GW, with 4GW of it offshore, solar is at 5GW and rising, with many new projects in the pipeline. By 2020 we may have 30GW of wind generation capacity and perhaps up to 20GW of solar.

Renewables get cheaper, nuclear gets more expensive

It’s true that this will require subsidies, but the technology is getting cheaper and by the time Hinkley is built, if it ever is, the Contact for a Difference (CfD) subsidy for on-land wind, and maybe even for solar, will be lower than that offered to the Hinkley developers (£92.5/MWh).

Indeed some say solar won’t need any subsidies in the 2020s. While offshore wind projects could be going ahead with CfD contracts below £100 / MWh, and without the £10 billion loan guarantee that Hinkley has been given.

The simple message is that renewables are getting cheaper and more competitive, while nuclear remains expensive, and its cost may well rise – requiring further subsidies.

The completion of the much delayed EPR at Flamanville, similar to the Hinkley design, has been put back by yet another year, to 2017, putting it even more over-budget.

The EPR being built in Finland, work on which started in 2005, and which was originally scheduled to go live in 2009, is now not likely to be completed until late 2018. It’s now almost twice over budget.

It’s hardly surprising then that most of the major EU power companies and utilities have backed away from nuclear, including SSE, RWE and Siemens, and most recently E.ON, in favour of renewables.

And globally it seems clear that renewables are winning out just about everywhere. They now supply over 19% of global primary energy and 22% or more of global electricity. By contrast nuclear is at around 11% and falling.

Country by country, renewables are taking over the world

Looking to the future, there are scenarios for India, Japan, South Korea, the USA and the EU, looking to renewables to supply most of their electricity, with Germany and Denmark of course already acting on them – Germany is aiming to get at least 80% of its electricity from renewables by 2050, Denmark 100%.

For example, a WWF report says China could get 80% of its electricity from renewables by 2050, at far less cost than relying on coal, and enabling China’s to cut its carbon emissions from power generation by 90% without compromising the reliability of the electric grid or slowing economic growth. And with no need for new nuclear.

Although renewables are not as developed as in China, India has been pushing them quite hard, with wind at nearly 20GW, on top of 39GW of existing large hydro. PV is at 2.6 GW grid-linked so far, but Bridge to India is pushing for 100GW by 2020.

Funding problems and policy changes have bedeviled the development of renewables in India, as have weak grids, with some saying that off-grid or mini grid community projects ought to be the focus.

The new government in India certainly faces some challenges. But WWF / TERI have produced an ambitious ‘near 100%’ by 2050 renewables scenario, with over 1,000GW each of wind and solar, plus major biomass use.

The US has now gets near 15% of its electricity from renewables, with wind power projects booming, and Obama’s policy of cutting emissions from coal plants by 30% by 2030 should speed that up. The US National Renewable Energy Lab has developed scenarios showing that the US could potentially generate 80% of its electricity from renewables by 2050.

In Japan renewables had been given a low priority, but following Fukushima nuclear disaster in 2011, Japan is now pushing ahead with some ambitious offshore wind projects, using floating wind turbines, and a large PV programme.

Overall, Japan has given the go-ahead to over 70 GW of renewable energy projects, most of which are solar. Longer term, a ‘100% by 2050′ ISEP renewables scenario has around 50GW of wind, much of it offshore, and 140GW of PV.

Rapid progress is being made in South America, although less so as yet in most of Africa. But the International Renewable Energy Agency says that Africa has the potential and the ability to utilise its renewable resources to fuel the majority of its future growth.

Yet the UK remains firmly stuck in a 1950s vision of the future

Back in the UK though, we have our large nuclear programme, with EDF one of the main backers. It can’t build any plants in France (which is cutting nuclear back by 25%), but the UK seems to be willing to host several – and pay heavily for them!

Similarly, Hitachi and Toshiba stand no chance of building new plants in Japan, but the UK is offering significant long-term subsidies and loan guarantees for their proposed UK projects. A far better deal than being offered to renewables.

Here the main focus seems to be on why we can’t afford offshore wind, or accept on-land wind, or live with large solar farms.

We struggle on – now generating over 15% of UK electricity from renewables, but far behind most of the rest of the EU, and especially the leaders, with some already having achieved their 2020 targets, nearly all of which were set higher than that for the UK.

In fact, despite having probably the largest potential of any EU country, we are still only beating Luxembourg and Malta.

It’s embarrassing …

 


 

David Elliott is Emeritus Professor of Technology Policy at the Open University.

Book: David’s latest book, ‘Renewables: a review of sustainable energy supply options’ is available from the Institute of Physics and the Network for Alternative Technology and Technology Assessment.

 

 




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Europe on the brink – green future or industrial wasteland? Updated for 2026





In the UK’s debate over its future membership of the EU, the broad ‘progressive’ spectrum of voters has long been in the pro-EU camp.

That’s not because ‘we’ like everything about the EU. It’s because the EU has offered unmistakable benefits for people and the environment – from the Working Time Directive, limiting the hours employees may be forced to work, to the Habitats & Species Directive, protecting our most precious wildlife, and the Air Quality Directive, which is forcing cuts in atmospheric pollution that are already preventing hundreds of thousands of premature deaths.

There is no doubt that a reluctant UK – once the proverbial ‘dirty man of Europe’ – has been forced to be infinitely cleaner and greener than it would ever have been on its own. The same goes for many other countries. The benefits have been enormous and unmistakeable.

The Dark is Rising

But there is another side to the EU, built as it was on the disreputable foundations of the Coal and Steel Community and the Euratom Treaty. This is a Europe of vested corporate interests, of over-powerful business lobbies, of jealously guarded privilege, secrecy and dodgy back-room political deals, of weak-wristed regulators unwilling or unable to clamp down on corporate abuses.

And today, it is all too clear which aspect of the EU dominates in the Junckers Commission. In the name of “focusing on what truly matters for citizens – jobs, growth and investment” the Commission is reining in desperately needed regulation to give citizens a clean and safe environment.

Proposed laws to reduce the air pollution that’s still killing some 400,000 people a year are to be scrapped – if Junckers and his troglodytic henchman Timmermans get their way in the College of Commissioners next Tuesday.

Under the name of ‘better regulation’ the whole ‘circular economy’ package to reduce waste to landfill and increase recycling would get bunged into the Commission’s capacious paper-shredder.

There have also been powerful calls to make the Habitats and Birds Directives more adaptable to local needs for example to allow Malta to carry on massacring migrating birds. You can be sure that the adaptation would only go one way – to weaken the laws, not to strengthen them.

Nuclear resurgence

The EU has also shown itself to be far too adaptable for its own good in its interpretation of it’s all important ‘state aid’ rules when it comes to nuclear power.

In October the Commission mysteriously approved a support package worth as much as £35 billion for the UK’s proposed Hinkley C nuclear power station – deeming, against a mountain of evidence, that it somehow maintained a ‘level playing field’ in the UK’s power market, even as it decimated the country’s renewable industries.

And now, following the UK’s inability to raise construction finance in spite of astonishingly generous power prices for nuclear power and a £10 billion construction finance guarantee, the Commission has approved three planned UK nuclear power stations (Hinkley Point C, Wylfa, and Moorside) to appear on its 2015 ‘infrastructure plan’ – putting them in line for as much as €46 billion in loan finance led by the European Investment Bank.

In fact the EU support is meant to be strictly reserved for projects that are economically viable and deliverable in the short term – which is clearly the very opposite of the case as regards the UK’s nuclear projects, which may require as much as £100 billion in subsidies and will not be deliverable for well over a decade.

Indeed, the infrastructure plan spells out the problems they face in clear terms, with strong “barriers” to investment. “High construction cost, long payback period is making debt raising difficult”, the document reveals.

The same applies to Poland’s struggling coal industry – also in line for €8 billion of ‘infrastructure’ funds to build new lignite coal mines, new power stations and extend the lifetimes of old coal plants that would otherwise have to be shut down.

Sacrificing democracy on the altar of ‘free trade’

At the same time the Commission is galloping into deeply unpopular trade and investment deals with the USA and Canada known as TTIP and CETA. Negotiations have been taking place in secret, excluding not just civil society but even MEPs and legislators in national member state Parliaments.

Most vexatious are the ‘investor dispute settlement’ procedures that would allow investors to sue national government for losses incurred due to regulatory changes affecting their anticipated profits.

As such, governments could be liable for losses caused by tightening pollution laws, raising the minimum wage, applying tighter limits on the release of environmental toxins, reversing the privatisation of public services, or a host of other actions. The damages would be awarded in secret courts composed of corporate lawyers.

TTIP / CETA would also involve ‘mutual recognition’ of standards between the EU and the USA and Canada, forcing EU consumers to accept North American GMO crops and meat and dairy produce from animals treated with yield-increasing growth hormones, currently banned from EU markets.

Astonishingly, the Commission even refused to accept an offical petition signed by over 1 million EU citizens known as a European Citizens’ Initiative (ECI) – on the manifestly false grounds that ECIs can only support the Commission’s proposals, and not oppose them.

How much longer can the EU count on our support?

It increasingly appears that the European Commission has decided, in the name of ‘jobs’, ‘investment’, ‘trade’ and ‘prosperity’ to abandon all the core values that once made the EU attractive to liberal and green minded voters, and abandon itself wholesale to the corporate lobbyists that stalk its corridors and enjoy privileged access to its officials.

And when it comes to a referendum on the UK’s continued EU membership,will surely leave progressive voters bereft of any positive enthusiasm to stay in.

Of course, it may be that the UK on its own would pursue even worse social and environmental policies, and that our own clay-footed politicians would be even more ready to sacrifice our rights, liberties and democratic traditions to corporate interests.

But that is to miss the point. To win a close-run election, the most important thing is not to so much win over opponents to your cause, but to get your own vote out on the day.

To get progressives to deliver their pro-EU votes – surely a necessary counterbalance to the now mainstream anti-EU right – we must be offered a positive vision of the Europe we want, and that our children have a right to enjoy.

And that means a green Europe, leading the world in renewable energy technologies, delivering social and environmental benefits to its citizens, founded on a bedrock of social justice, and rebalancing power away from profit-driven corporations, and to the people.

 



Oliver Tickell edits The Ecologist.

 

 




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UK’s €46 billion bid for EIB nuclear loan Updated for 2026





The EU’s new infrastructure plan could include €46 billion in debt finance from the European Investment Bank (EIB) for UK nuclear power projects, according to an analysis of newly published documents by international NGO, CEE Bankwatch Network.

Also in line for support are huge new coal mines and coal power stations in Poland and eastern Europe, and upgrades to existing highly polluting coal plants that would otherwise be forced to close.

The documents just presented by the European Commission, include details of infrastructure projects bidding for support from the €300bn plan within each member state.

It comes as EU negotiators are in Lima arguing for tougher global climate targets.

The EU infrastructure plan will use around €21bn from the EU’s budget and the European Investment Bank (EIB) to provide guarantees to projects considered to be strategic investments in European infrastructure – creating a new funding body to work alongside the EIB.

The EIB will then seek to raise further €60bn to invest in unfunded projects across Europe.

UK – nuclear, biomass, coal gasification

The largest chunk of infrastructure money in the UK’s list is the €46bn it is seeking from the EIB for new nuclear power stations which have been hit by “funding shortages due to lack of support from utilities and private investors” – €16bn of it in 2015.

Three potential projects are listed with a total capacity of 12.2GW: Hinkley Point C, Wylfa, and Moorside, all described as “reaching investment decision in the near term.” The document adds that “more support is needed to unlock capital and accelerate investment.”

It adds that there are “barriers” to investment: “High construction cost, long payback period is making debt raising difficult.” The UK’s solution: “EIB senior and sub-ordinated debt or guarantees for developers and supply chain”.

The UK’s plans also include €6.3bn in support for new biomass combustion plants to meet the UK’s 2020 renewable energy targets which face “lack of investment appetite” in part due to “concerns over the sustainability of biomass.”

Under the environment section of its pitch the UK lists support for controversial offshore underground coal gasification with carbon capture claiming: “this project can attract commercial investment if backed by loan guarantees but needs £23m up front in 2015 for pre-commercial testing.”

Poland’s bid for nuclear and massive coal expansion

Poland’s bid for support includes plans for a €5 billion new lignite (brown coal) mine and power plant in Gubin and €1.5bn each for giant hard coal plants in Laziska and Kozienice hard coal power plants already under construction.

Further to that Poland is seeking EU funds to modernise its ageing fleet of existing coal-fired plants which would otherwise be forced to close under EU air quality rules.

Polish coal projects have struggled to attract investment due to the high cost of mining and concerns amongst investors that Europe’s own plans to cut emissions by 40% are incompatible with expansion of the Polish coal sector.

But the biggest energy sector funding item is €12bn for an unnamed nuclear power plant. “The implementation of the project is impeded by a number of barriers and failures”, the bid makes clear, including “lack of market incentives”, “market failures linked to the lack of long-term economic predictability” and “regulatory barriers linked to highly restrictive licencing requirements”.

The EIB – which has previously committed not to finance coal plants – welcomed the list of projects, which amounts to a total of over a trillion euros, despite Poland’s bid for huge coal sector expansion.

“It is also urgent to tackle the significant non-financial barriers identified by the Task Force that prevent investment for viable projects from materialising”, insisted EIB president Werner Hoyer.

‘Environmental organisations to be managed’

Referring to Poland’s Gubin project the leaked document notes: “There is high risk that without appropriate support mechanisms, financial closure and investment implementation may not be feasible. Numerous stakeholders (especially environmental organizations) to [be] managed.”

The support for UK nuclear and Polish coal appear to be at odds with EU plans to focus investment on projects which are economically viable and deliverable in the short term.

The list was put together by an EU task force including the European commission, member states, the EIB and industry representatives – there were no representatives from civil society.

The list of projects is to be further discussed – and reduced – by the European Council, Commission and the European Investment Bank and no final decisions have been made yet.

“Scary is the first word that came to my mind as I looked at the list of projects proposed by the various member states to be financed from Juncker’s billions,” commented Bankwatch’s Markus Trilling.

“There is a huge amount of coal being proposed by the various countries, including Poland, Croatia and Romania, and this is in full contradiction not only to EU goals but also to Juncker’s rhetoric on sustainability.”

Xavier Sol of Counter Balance added: “As guarantors of the good use of public funds, the EC and the EIB have to help Europeans escape this madness of bad and dirty infrastructure and make sure transformative sectors such as energy efficiency and renewables get priority over fossil fuels.

The EU institutions have to check properly every single project and make sure the public has a chance to comment on the list of projects that will get priority financing.”

 


 

This article is an extended and edited version of one originally published on the Greenpeace Energy Desk.

 




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