Tag Archives: nuclear

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.

 




385559

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.

 




385559

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.

 




385559

There’s no place for nuclear in the ‘Clean Power Plan’ Updated for 2026





Dear Administrator Gina McCarthy,

We strongly support the Environmental Protection Agency’s goals in the Clean Power Plan draft regulation, and we are grateful for the agency’s leadership in setting a critical policy for reducing emissions from the electricity generation sector.

We also appreciate the fact that the Clean Power Plan’s purpose is to create enforceable goals for states to reduce emissions, and a framework (the Best System of Emissions Reduction / BSER) for them to implement and comply with the targets.

The framework must be flexible and adaptable, to account for technological advances and regional differences in energy resources and regulatory systems, but it must also encourage rational and effective policies.

Unfortunately, the treatment of nuclear energy in the draft rule is unsupported by meaningful analysis, and would make it possible for states to implement the rule in ways that are counterproductive to the Clean Power Plan’s purpose of reducing emissions.

The role of nuclear power must be re-evaluated

We are, additionally, very concerned about industry proposals to expand provisions to encourage nuclear. We urge the EPA to conduct a thorough and fact-based analysis of nuclear, and to do the following:

  1. Remove the preservation of existing nuclear reactors from the BSER.
  2. Do not force Georgia, South Carolina, and Tennessee to finish building new reactors.
  3. Conduct a thorough and accurate analysis of the environmental impacts of nuclear power, from radioactive waste and uranium mining to reactor accidents and water use.
  4. Recognize and incorporate the much greater role renewable energy and efficiency can, will, and must play in reducing carbon emissions and replacing both fossil fuels and nuclear.

We recognize that the EPA has undertaken a monumental task in developing the Clean Power Plan – perhaps the most important single step in setting the U.S. on the path to reducing emissions enough to avert the worst of global warming and climate change.

It is essential that we begin making substantial reductions in emissions immediately, and that the institutional inertia and narrow self-interest of utilities and major power companies do not stand in the way of deploying the most cost-effective and environmentally sustainable energy solutions.

For that very reason, it is important the regulation ensures states do not get off on the wrong foot and implement the rule in ways that are counterproductive.

False and irrational assumptions

Unfortunately, the Clean Power Plan’s treatment of nuclear incentivizes the preservation and expansion of a technology that is and has always been the most expensive, inflexible, and dangerous complement to fossil fuels.

The Clean Power Plan incorporates nuclear into the BSER in two ways:

  • Assumes five new reactors will be completed and brought online in the states of Georgia, South Carolina, and Tennessee, and irrationally estimates the cost of doing so as $0. In fact, billions more remain to be spent on these reactors and there is a great deal of uncertainty about when, if ever, they will be completed, facing years of delays and billions in cost overruns. The cost assumption would force states to complete the reactors no matter the cost, rather than enabling them to choose better ways to meet their emissions goals. Even though renewables and efficiency could be deployed at lower cost than nuclear, the draft rule would make it look like they are much more expensive because of the zero-cost assumption about completing the reactors.
  • Encourages states to ‘preserve’ reactors economically at-risk of being closed, equivalent to 6% of each state’s existing nuclear generation. While it is true that about 6% of the nation’s operating reactors may close for economic reasons, this provision encourages every state to subsidize existing reactors, greatly underestimates the cost of doing so, and overestimates their role in reducing emissions. Uneconomical reactors have high and rising operating costs, and cannot compete with renewables and efficiency. If anything, EPA should simply recommend that low-carbon energy sources be replaced with other low-carbon resources, but singling out nuclear for ‘preservation’ suggests it is better for states to lock themselves into obsolete and increasingly uneconomical nuclear.

The rule also says states may utilize two other ways of adding nuclear capacity as options for achieving the goals, even though they are not incorporated in the BSER:

  • New reactors other than those currently in construction. EPA recognizes that new nuclear is too expensive to be included in the BSER, so it should not suggest states consider it as a way of meeting their emissions goals.
  • Power uprate modifications to increase the generation capacity of existing reactors. Power uprates are capital-intensive and expensive, and several recent projects have been cancelled or suffered major cost overruns, in the case of Minnesota’s Monticello reactor, at a total cost greater than most new reactors ($10 million/megawatt). [1]

Rather than suggesting states waste resources on nuclear generation too expensive and infeasible to be included in the BSER, EPA should include an analysis of these problems so that states can better evaluate their options and select lower-cost, more reliable means for reducing emissions, such as renewables and efficiency.

Serious nuclear concerns ignored

The Clean Power Plan also considers some non-air quality impacts of nuclear generation, as it is required to do under the Clean Air Act. However, the EPA’s evaluation is both woefully incomplete and alarmingly inadequate. EPA dismisses concerns about radioactive waste and nuclear power’s impact on water resources, simply characterizing them as equivalent to problems with fossil fuel generation.

In fact, radioactive waste is an intractable problem that threatens the environment for potentially hundreds of thousands of years. In addition, nuclear reactors’ use of water is more intensive than fossil fuel technologies, and a majority of existing reactors utilize the most water-intensive once-through cooling systems.

Regardless, however, rather than only comparing them to fossil fuels, EPA should have compared these impacts to the full range of alternatives, including renewables and efficiency, which do not have such problems.

EPA leaves out a host of other environmental impacts unique to nuclear, including uranium mining and nuclear accidents.

There are over 10,000 abandoned uranium mines throughout the US, which are subject to lax environmental standards, pose major groundwater and public health risks, present serious environmental justice concerns, and could entail billions in site cleanup and remediation costs.

The failure to consider the impacts of a nuclear accident is a glaring oversight, in the wake of the Fukushima disaster. EPA must consider both the environmental and economic impact of nuclear accidents.

Renewables can do the job!

In general, the Clean Power Plan’s consideration of nuclear appears to be based on a dangerous fallacy: that closed reactors must be replaced with fossil fuel generation, presumably because other low- / zero-carbon resources could not make up the difference.

In fact, renewable energy growth has surpassed all other forms of new generation for going on three years, making up 48% of all new electricity generation brought online from 2011 to July 2014. [2]

The growth rate of wind energy alone (up to 12,000 MW per year) would be sufficient to replace all of the ‘at-risk’ nuclear capacity within two years, at lower cost than the market price of electricity, [3] let alone at the subsidized rate for nuclear the draft rule suggests.

Assuming that closed reactors will be replaced with fossil fuel generation both encourages states to waste resources trying to ‘preserve’ (or even build) uneconomical reactors rather than on more cost-effective and productive investments in renewables and efficiency.

While states are free to develop their implementation plans without using the specific energy sources included in the BSER, the rule should not promote such foolishness.

No amount of spending or subsidies for nuclear has been effective at reducing the technology’s costs nor overcoming lengthy construction times and delays, whereas spending on renewables and efficiency has had the effect of lowering their costs and increasing their rate of deployment.

The economic problems facing currently operating reactors merely underscore the point that nuclear is not a cost-effective way of reducing emissions.

We are hopeful that the Clean Power Plan will be a watershed in setting the country on a path to emissions reductions and climate action, and we are grateful to the EPA for taking this step.

We believe that correcting the problems with the way nuclear is considered in the draft rule, and increasing the role of renewables and efficiency, will make the Clean Power Plan much stronger and lead states to implement it more productively and cost-effectively.

 


 

Action – organizations: Make sure your organization is signed on to our comments on the Clean Power Plan, which expand on the points above. The comments, and current list of endorsers, are here. If your organization is not listed, please sign on now by sending an e-mail to me at nirsnet@nirs.org with your name, title, organization name, city, and state (and country if outside the US – we encourage our international friends to support us in this effort!). Please sign on by midnight, Sunday, November 30, 2014.

Action – individuals: Please send in your comments on our action page here. And please share the action page with your friends and colleagues using the logos at its top, or share our previous Alert on the issue on Facebook and Twitter here. More than 19,000 of you have acted so far; we want to top 20,000 (do I hear 25,000?) comments before the December 1 deadline. Your help in outreach is essential to meet that goal.

Tim Judson is Executive Director of Nuclear Information & Resource Service, Takoma Park, MD.

For full list of signatories see NIRS.

References

1. Shaffer, David. ‘Xcel management blamed for cost overruns at Monticello nuclear plant‘. Minneapolis Star-Tribune, July 9, 2014.

2. Sun Day Campaign. ‘Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014‘. July 21, 2014.

3. Lawrence Berkley National Laboratory. ‘2013 Wind Technologies Market Report‘. US Department of Energy. August 18, 2014.

 




387540

There’s no place for nuclear in the ‘Clean Power Plan’ Updated for 2026





Dear Administrator Gina McCarthy,

We strongly support the Environmental Protection Agency’s goals in the Clean Power Plan draft regulation, and we are grateful for the agency’s leadership in setting a critical policy for reducing emissions from the electricity generation sector.

We also appreciate the fact that the Clean Power Plan’s purpose is to create enforceable goals for states to reduce emissions, and a framework (the Best System of Emissions Reduction / BSER) for them to implement and comply with the targets.

The framework must be flexible and adaptable, to account for technological advances and regional differences in energy resources and regulatory systems, but it must also encourage rational and effective policies.

Unfortunately, the treatment of nuclear energy in the draft rule is unsupported by meaningful analysis, and would make it possible for states to implement the rule in ways that are counterproductive to the Clean Power Plan’s purpose of reducing emissions.

The role of nuclear power must be re-evaluated

We are, additionally, very concerned about industry proposals to expand provisions to encourage nuclear. We urge the EPA to conduct a thorough and fact-based analysis of nuclear, and to do the following:

  1. Remove the preservation of existing nuclear reactors from the BSER.
  2. Do not force Georgia, South Carolina, and Tennessee to finish building new reactors.
  3. Conduct a thorough and accurate analysis of the environmental impacts of nuclear power, from radioactive waste and uranium mining to reactor accidents and water use.
  4. Recognize and incorporate the much greater role renewable energy and efficiency can, will, and must play in reducing carbon emissions and replacing both fossil fuels and nuclear.

We recognize that the EPA has undertaken a monumental task in developing the Clean Power Plan – perhaps the most important single step in setting the U.S. on the path to reducing emissions enough to avert the worst of global warming and climate change.

It is essential that we begin making substantial reductions in emissions immediately, and that the institutional inertia and narrow self-interest of utilities and major power companies do not stand in the way of deploying the most cost-effective and environmentally sustainable energy solutions.

For that very reason, it is important the regulation ensures states do not get off on the wrong foot and implement the rule in ways that are counterproductive.

False and irrational assumptions

Unfortunately, the Clean Power Plan’s treatment of nuclear incentivizes the preservation and expansion of a technology that is and has always been the most expensive, inflexible, and dangerous complement to fossil fuels.

The Clean Power Plan incorporates nuclear into the BSER in two ways:

  • Assumes five new reactors will be completed and brought online in the states of Georgia, South Carolina, and Tennessee, and irrationally estimates the cost of doing so as $0. In fact, billions more remain to be spent on these reactors and there is a great deal of uncertainty about when, if ever, they will be completed, facing years of delays and billions in cost overruns. The cost assumption would force states to complete the reactors no matter the cost, rather than enabling them to choose better ways to meet their emissions goals. Even though renewables and efficiency could be deployed at lower cost than nuclear, the draft rule would make it look like they are much more expensive because of the zero-cost assumption about completing the reactors.
  • Encourages states to ‘preserve’ reactors economically at-risk of being closed, equivalent to 6% of each state’s existing nuclear generation. While it is true that about 6% of the nation’s operating reactors may close for economic reasons, this provision encourages every state to subsidize existing reactors, greatly underestimates the cost of doing so, and overestimates their role in reducing emissions. Uneconomical reactors have high and rising operating costs, and cannot compete with renewables and efficiency. If anything, EPA should simply recommend that low-carbon energy sources be replaced with other low-carbon resources, but singling out nuclear for ‘preservation’ suggests it is better for states to lock themselves into obsolete and increasingly uneconomical nuclear.

The rule also says states may utilize two other ways of adding nuclear capacity as options for achieving the goals, even though they are not incorporated in the BSER:

  • New reactors other than those currently in construction. EPA recognizes that new nuclear is too expensive to be included in the BSER, so it should not suggest states consider it as a way of meeting their emissions goals.
  • Power uprate modifications to increase the generation capacity of existing reactors. Power uprates are capital-intensive and expensive, and several recent projects have been cancelled or suffered major cost overruns, in the case of Minnesota’s Monticello reactor, at a total cost greater than most new reactors ($10 million/megawatt). [1]

Rather than suggesting states waste resources on nuclear generation too expensive and infeasible to be included in the BSER, EPA should include an analysis of these problems so that states can better evaluate their options and select lower-cost, more reliable means for reducing emissions, such as renewables and efficiency.

Serious nuclear concerns ignored

The Clean Power Plan also considers some non-air quality impacts of nuclear generation, as it is required to do under the Clean Air Act. However, the EPA’s evaluation is both woefully incomplete and alarmingly inadequate. EPA dismisses concerns about radioactive waste and nuclear power’s impact on water resources, simply characterizing them as equivalent to problems with fossil fuel generation.

In fact, radioactive waste is an intractable problem that threatens the environment for potentially hundreds of thousands of years. In addition, nuclear reactors’ use of water is more intensive than fossil fuel technologies, and a majority of existing reactors utilize the most water-intensive once-through cooling systems.

Regardless, however, rather than only comparing them to fossil fuels, EPA should have compared these impacts to the full range of alternatives, including renewables and efficiency, which do not have such problems.

EPA leaves out a host of other environmental impacts unique to nuclear, including uranium mining and nuclear accidents.

There are over 10,000 abandoned uranium mines throughout the US, which are subject to lax environmental standards, pose major groundwater and public health risks, present serious environmental justice concerns, and could entail billions in site cleanup and remediation costs.

The failure to consider the impacts of a nuclear accident is a glaring oversight, in the wake of the Fukushima disaster. EPA must consider both the environmental and economic impact of nuclear accidents.

Renewables can do the job!

In general, the Clean Power Plan’s consideration of nuclear appears to be based on a dangerous fallacy: that closed reactors must be replaced with fossil fuel generation, presumably because other low- / zero-carbon resources could not make up the difference.

In fact, renewable energy growth has surpassed all other forms of new generation for going on three years, making up 48% of all new electricity generation brought online from 2011 to July 2014. [2]

The growth rate of wind energy alone (up to 12,000 MW per year) would be sufficient to replace all of the ‘at-risk’ nuclear capacity within two years, at lower cost than the market price of electricity, [3] let alone at the subsidized rate for nuclear the draft rule suggests.

Assuming that closed reactors will be replaced with fossil fuel generation both encourages states to waste resources trying to ‘preserve’ (or even build) uneconomical reactors rather than on more cost-effective and productive investments in renewables and efficiency.

While states are free to develop their implementation plans without using the specific energy sources included in the BSER, the rule should not promote such foolishness.

No amount of spending or subsidies for nuclear has been effective at reducing the technology’s costs nor overcoming lengthy construction times and delays, whereas spending on renewables and efficiency has had the effect of lowering their costs and increasing their rate of deployment.

The economic problems facing currently operating reactors merely underscore the point that nuclear is not a cost-effective way of reducing emissions.

We are hopeful that the Clean Power Plan will be a watershed in setting the country on a path to emissions reductions and climate action, and we are grateful to the EPA for taking this step.

We believe that correcting the problems with the way nuclear is considered in the draft rule, and increasing the role of renewables and efficiency, will make the Clean Power Plan much stronger and lead states to implement it more productively and cost-effectively.

 


 

Action – organizations: Make sure your organization is signed on to our comments on the Clean Power Plan, which expand on the points above. The comments, and current list of endorsers, are here. If your organization is not listed, please sign on now by sending an e-mail to me at nirsnet@nirs.org with your name, title, organization name, city, and state (and country if outside the US – we encourage our international friends to support us in this effort!). Please sign on by midnight, Sunday, November 30, 2014.

Action – individuals: Please send in your comments on our action page here. And please share the action page with your friends and colleagues using the logos at its top, or share our previous Alert on the issue on Facebook and Twitter here. More than 19,000 of you have acted so far; we want to top 20,000 (do I hear 25,000?) comments before the December 1 deadline. Your help in outreach is essential to meet that goal.

Tim Judson is Executive Director of Nuclear Information & Resource Service, Takoma Park, MD.

For full list of signatories see NIRS.

References

1. Shaffer, David. ‘Xcel management blamed for cost overruns at Monticello nuclear plant‘. Minneapolis Star-Tribune, July 9, 2014.

2. Sun Day Campaign. ‘Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014‘. July 21, 2014.

3. Lawrence Berkley National Laboratory. ‘2013 Wind Technologies Market Report‘. US Department of Energy. August 18, 2014.

 




387540

There’s no place for nuclear in the ‘Clean Power Plan’ Updated for 2026





Dear Administrator Gina McCarthy,

We strongly support the Environmental Protection Agency’s goals in the Clean Power Plan draft regulation, and we are grateful for the agency’s leadership in setting a critical policy for reducing emissions from the electricity generation sector.

We also appreciate the fact that the Clean Power Plan’s purpose is to create enforceable goals for states to reduce emissions, and a framework (the Best System of Emissions Reduction / BSER) for them to implement and comply with the targets.

The framework must be flexible and adaptable, to account for technological advances and regional differences in energy resources and regulatory systems, but it must also encourage rational and effective policies.

Unfortunately, the treatment of nuclear energy in the draft rule is unsupported by meaningful analysis, and would make it possible for states to implement the rule in ways that are counterproductive to the Clean Power Plan’s purpose of reducing emissions.

The role of nuclear power must be re-evaluated

We are, additionally, very concerned about industry proposals to expand provisions to encourage nuclear. We urge the EPA to conduct a thorough and fact-based analysis of nuclear, and to do the following:

  1. Remove the preservation of existing nuclear reactors from the BSER.
  2. Do not force Georgia, South Carolina, and Tennessee to finish building new reactors.
  3. Conduct a thorough and accurate analysis of the environmental impacts of nuclear power, from radioactive waste and uranium mining to reactor accidents and water use.
  4. Recognize and incorporate the much greater role renewable energy and efficiency can, will, and must play in reducing carbon emissions and replacing both fossil fuels and nuclear.

We recognize that the EPA has undertaken a monumental task in developing the Clean Power Plan – perhaps the most important single step in setting the U.S. on the path to reducing emissions enough to avert the worst of global warming and climate change.

It is essential that we begin making substantial reductions in emissions immediately, and that the institutional inertia and narrow self-interest of utilities and major power companies do not stand in the way of deploying the most cost-effective and environmentally sustainable energy solutions.

For that very reason, it is important the regulation ensures states do not get off on the wrong foot and implement the rule in ways that are counterproductive.

False and irrational assumptions

Unfortunately, the Clean Power Plan’s treatment of nuclear incentivizes the preservation and expansion of a technology that is and has always been the most expensive, inflexible, and dangerous complement to fossil fuels.

The Clean Power Plan incorporates nuclear into the BSER in two ways:

  • Assumes five new reactors will be completed and brought online in the states of Georgia, South Carolina, and Tennessee, and irrationally estimates the cost of doing so as $0. In fact, billions more remain to be spent on these reactors and there is a great deal of uncertainty about when, if ever, they will be completed, facing years of delays and billions in cost overruns. The cost assumption would force states to complete the reactors no matter the cost, rather than enabling them to choose better ways to meet their emissions goals. Even though renewables and efficiency could be deployed at lower cost than nuclear, the draft rule would make it look like they are much more expensive because of the zero-cost assumption about completing the reactors.
  • Encourages states to ‘preserve’ reactors economically at-risk of being closed, equivalent to 6% of each state’s existing nuclear generation. While it is true that about 6% of the nation’s operating reactors may close for economic reasons, this provision encourages every state to subsidize existing reactors, greatly underestimates the cost of doing so, and overestimates their role in reducing emissions. Uneconomical reactors have high and rising operating costs, and cannot compete with renewables and efficiency. If anything, EPA should simply recommend that low-carbon energy sources be replaced with other low-carbon resources, but singling out nuclear for ‘preservation’ suggests it is better for states to lock themselves into obsolete and increasingly uneconomical nuclear.

The rule also says states may utilize two other ways of adding nuclear capacity as options for achieving the goals, even though they are not incorporated in the BSER:

  • New reactors other than those currently in construction. EPA recognizes that new nuclear is too expensive to be included in the BSER, so it should not suggest states consider it as a way of meeting their emissions goals.
  • Power uprate modifications to increase the generation capacity of existing reactors. Power uprates are capital-intensive and expensive, and several recent projects have been cancelled or suffered major cost overruns, in the case of Minnesota’s Monticello reactor, at a total cost greater than most new reactors ($10 million/megawatt). [1]

Rather than suggesting states waste resources on nuclear generation too expensive and infeasible to be included in the BSER, EPA should include an analysis of these problems so that states can better evaluate their options and select lower-cost, more reliable means for reducing emissions, such as renewables and efficiency.

Serious nuclear concerns ignored

The Clean Power Plan also considers some non-air quality impacts of nuclear generation, as it is required to do under the Clean Air Act. However, the EPA’s evaluation is both woefully incomplete and alarmingly inadequate. EPA dismisses concerns about radioactive waste and nuclear power’s impact on water resources, simply characterizing them as equivalent to problems with fossil fuel generation.

In fact, radioactive waste is an intractable problem that threatens the environment for potentially hundreds of thousands of years. In addition, nuclear reactors’ use of water is more intensive than fossil fuel technologies, and a majority of existing reactors utilize the most water-intensive once-through cooling systems.

Regardless, however, rather than only comparing them to fossil fuels, EPA should have compared these impacts to the full range of alternatives, including renewables and efficiency, which do not have such problems.

EPA leaves out a host of other environmental impacts unique to nuclear, including uranium mining and nuclear accidents.

There are over 10,000 abandoned uranium mines throughout the US, which are subject to lax environmental standards, pose major groundwater and public health risks, present serious environmental justice concerns, and could entail billions in site cleanup and remediation costs.

The failure to consider the impacts of a nuclear accident is a glaring oversight, in the wake of the Fukushima disaster. EPA must consider both the environmental and economic impact of nuclear accidents.

Renewables can do the job!

In general, the Clean Power Plan’s consideration of nuclear appears to be based on a dangerous fallacy: that closed reactors must be replaced with fossil fuel generation, presumably because other low- / zero-carbon resources could not make up the difference.

In fact, renewable energy growth has surpassed all other forms of new generation for going on three years, making up 48% of all new electricity generation brought online from 2011 to July 2014. [2]

The growth rate of wind energy alone (up to 12,000 MW per year) would be sufficient to replace all of the ‘at-risk’ nuclear capacity within two years, at lower cost than the market price of electricity, [3] let alone at the subsidized rate for nuclear the draft rule suggests.

Assuming that closed reactors will be replaced with fossil fuel generation both encourages states to waste resources trying to ‘preserve’ (or even build) uneconomical reactors rather than on more cost-effective and productive investments in renewables and efficiency.

While states are free to develop their implementation plans without using the specific energy sources included in the BSER, the rule should not promote such foolishness.

No amount of spending or subsidies for nuclear has been effective at reducing the technology’s costs nor overcoming lengthy construction times and delays, whereas spending on renewables and efficiency has had the effect of lowering their costs and increasing their rate of deployment.

The economic problems facing currently operating reactors merely underscore the point that nuclear is not a cost-effective way of reducing emissions.

We are hopeful that the Clean Power Plan will be a watershed in setting the country on a path to emissions reductions and climate action, and we are grateful to the EPA for taking this step.

We believe that correcting the problems with the way nuclear is considered in the draft rule, and increasing the role of renewables and efficiency, will make the Clean Power Plan much stronger and lead states to implement it more productively and cost-effectively.

 


 

Action – organizations: Make sure your organization is signed on to our comments on the Clean Power Plan, which expand on the points above. The comments, and current list of endorsers, are here. If your organization is not listed, please sign on now by sending an e-mail to me at nirsnet@nirs.org with your name, title, organization name, city, and state (and country if outside the US – we encourage our international friends to support us in this effort!). Please sign on by midnight, Sunday, November 30, 2014.

Action – individuals: Please send in your comments on our action page here. And please share the action page with your friends and colleagues using the logos at its top, or share our previous Alert on the issue on Facebook and Twitter here. More than 19,000 of you have acted so far; we want to top 20,000 (do I hear 25,000?) comments before the December 1 deadline. Your help in outreach is essential to meet that goal.

Tim Judson is Executive Director of Nuclear Information & Resource Service, Takoma Park, MD.

For full list of signatories see NIRS.

References

1. Shaffer, David. ‘Xcel management blamed for cost overruns at Monticello nuclear plant‘. Minneapolis Star-Tribune, July 9, 2014.

2. Sun Day Campaign. ‘Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014‘. July 21, 2014.

3. Lawrence Berkley National Laboratory. ‘2013 Wind Technologies Market Report‘. US Department of Energy. August 18, 2014.

 




387540

There’s no place for nuclear in the ‘Clean Power Plan’ Updated for 2026





Dear Administrator Gina McCarthy,

We strongly support the Environmental Protection Agency’s goals in the Clean Power Plan draft regulation, and we are grateful for the agency’s leadership in setting a critical policy for reducing emissions from the electricity generation sector.

We also appreciate the fact that the Clean Power Plan’s purpose is to create enforceable goals for states to reduce emissions, and a framework (the Best System of Emissions Reduction / BSER) for them to implement and comply with the targets.

The framework must be flexible and adaptable, to account for technological advances and regional differences in energy resources and regulatory systems, but it must also encourage rational and effective policies.

Unfortunately, the treatment of nuclear energy in the draft rule is unsupported by meaningful analysis, and would make it possible for states to implement the rule in ways that are counterproductive to the Clean Power Plan’s purpose of reducing emissions.

The role of nuclear power must be re-evaluated

We are, additionally, very concerned about industry proposals to expand provisions to encourage nuclear. We urge the EPA to conduct a thorough and fact-based analysis of nuclear, and to do the following:

  1. Remove the preservation of existing nuclear reactors from the BSER.
  2. Do not force Georgia, South Carolina, and Tennessee to finish building new reactors.
  3. Conduct a thorough and accurate analysis of the environmental impacts of nuclear power, from radioactive waste and uranium mining to reactor accidents and water use.
  4. Recognize and incorporate the much greater role renewable energy and efficiency can, will, and must play in reducing carbon emissions and replacing both fossil fuels and nuclear.

We recognize that the EPA has undertaken a monumental task in developing the Clean Power Plan – perhaps the most important single step in setting the U.S. on the path to reducing emissions enough to avert the worst of global warming and climate change.

It is essential that we begin making substantial reductions in emissions immediately, and that the institutional inertia and narrow self-interest of utilities and major power companies do not stand in the way of deploying the most cost-effective and environmentally sustainable energy solutions.

For that very reason, it is important the regulation ensures states do not get off on the wrong foot and implement the rule in ways that are counterproductive.

False and irrational assumptions

Unfortunately, the Clean Power Plan’s treatment of nuclear incentivizes the preservation and expansion of a technology that is and has always been the most expensive, inflexible, and dangerous complement to fossil fuels.

The Clean Power Plan incorporates nuclear into the BSER in two ways:

  • Assumes five new reactors will be completed and brought online in the states of Georgia, South Carolina, and Tennessee, and irrationally estimates the cost of doing so as $0. In fact, billions more remain to be spent on these reactors and there is a great deal of uncertainty about when, if ever, they will be completed, facing years of delays and billions in cost overruns. The cost assumption would force states to complete the reactors no matter the cost, rather than enabling them to choose better ways to meet their emissions goals. Even though renewables and efficiency could be deployed at lower cost than nuclear, the draft rule would make it look like they are much more expensive because of the zero-cost assumption about completing the reactors.
  • Encourages states to ‘preserve’ reactors economically at-risk of being closed, equivalent to 6% of each state’s existing nuclear generation. While it is true that about 6% of the nation’s operating reactors may close for economic reasons, this provision encourages every state to subsidize existing reactors, greatly underestimates the cost of doing so, and overestimates their role in reducing emissions. Uneconomical reactors have high and rising operating costs, and cannot compete with renewables and efficiency. If anything, EPA should simply recommend that low-carbon energy sources be replaced with other low-carbon resources, but singling out nuclear for ‘preservation’ suggests it is better for states to lock themselves into obsolete and increasingly uneconomical nuclear.

The rule also says states may utilize two other ways of adding nuclear capacity as options for achieving the goals, even though they are not incorporated in the BSER:

  • New reactors other than those currently in construction. EPA recognizes that new nuclear is too expensive to be included in the BSER, so it should not suggest states consider it as a way of meeting their emissions goals.
  • Power uprate modifications to increase the generation capacity of existing reactors. Power uprates are capital-intensive and expensive, and several recent projects have been cancelled or suffered major cost overruns, in the case of Minnesota’s Monticello reactor, at a total cost greater than most new reactors ($10 million/megawatt). [1]

Rather than suggesting states waste resources on nuclear generation too expensive and infeasible to be included in the BSER, EPA should include an analysis of these problems so that states can better evaluate their options and select lower-cost, more reliable means for reducing emissions, such as renewables and efficiency.

Serious nuclear concerns ignored

The Clean Power Plan also considers some non-air quality impacts of nuclear generation, as it is required to do under the Clean Air Act. However, the EPA’s evaluation is both woefully incomplete and alarmingly inadequate. EPA dismisses concerns about radioactive waste and nuclear power’s impact on water resources, simply characterizing them as equivalent to problems with fossil fuel generation.

In fact, radioactive waste is an intractable problem that threatens the environment for potentially hundreds of thousands of years. In addition, nuclear reactors’ use of water is more intensive than fossil fuel technologies, and a majority of existing reactors utilize the most water-intensive once-through cooling systems.

Regardless, however, rather than only comparing them to fossil fuels, EPA should have compared these impacts to the full range of alternatives, including renewables and efficiency, which do not have such problems.

EPA leaves out a host of other environmental impacts unique to nuclear, including uranium mining and nuclear accidents.

There are over 10,000 abandoned uranium mines throughout the US, which are subject to lax environmental standards, pose major groundwater and public health risks, present serious environmental justice concerns, and could entail billions in site cleanup and remediation costs.

The failure to consider the impacts of a nuclear accident is a glaring oversight, in the wake of the Fukushima disaster. EPA must consider both the environmental and economic impact of nuclear accidents.

Renewables can do the job!

In general, the Clean Power Plan’s consideration of nuclear appears to be based on a dangerous fallacy: that closed reactors must be replaced with fossil fuel generation, presumably because other low- / zero-carbon resources could not make up the difference.

In fact, renewable energy growth has surpassed all other forms of new generation for going on three years, making up 48% of all new electricity generation brought online from 2011 to July 2014. [2]

The growth rate of wind energy alone (up to 12,000 MW per year) would be sufficient to replace all of the ‘at-risk’ nuclear capacity within two years, at lower cost than the market price of electricity, [3] let alone at the subsidized rate for nuclear the draft rule suggests.

Assuming that closed reactors will be replaced with fossil fuel generation both encourages states to waste resources trying to ‘preserve’ (or even build) uneconomical reactors rather than on more cost-effective and productive investments in renewables and efficiency.

While states are free to develop their implementation plans without using the specific energy sources included in the BSER, the rule should not promote such foolishness.

No amount of spending or subsidies for nuclear has been effective at reducing the technology’s costs nor overcoming lengthy construction times and delays, whereas spending on renewables and efficiency has had the effect of lowering their costs and increasing their rate of deployment.

The economic problems facing currently operating reactors merely underscore the point that nuclear is not a cost-effective way of reducing emissions.

We are hopeful that the Clean Power Plan will be a watershed in setting the country on a path to emissions reductions and climate action, and we are grateful to the EPA for taking this step.

We believe that correcting the problems with the way nuclear is considered in the draft rule, and increasing the role of renewables and efficiency, will make the Clean Power Plan much stronger and lead states to implement it more productively and cost-effectively.

 


 

Action – organizations: Make sure your organization is signed on to our comments on the Clean Power Plan, which expand on the points above. The comments, and current list of endorsers, are here. If your organization is not listed, please sign on now by sending an e-mail to me at nirsnet@nirs.org with your name, title, organization name, city, and state (and country if outside the US – we encourage our international friends to support us in this effort!). Please sign on by midnight, Sunday, November 30, 2014.

Action – individuals: Please send in your comments on our action page here. And please share the action page with your friends and colleagues using the logos at its top, or share our previous Alert on the issue on Facebook and Twitter here. More than 19,000 of you have acted so far; we want to top 20,000 (do I hear 25,000?) comments before the December 1 deadline. Your help in outreach is essential to meet that goal.

Tim Judson is Executive Director of Nuclear Information & Resource Service, Takoma Park, MD.

For full list of signatories see NIRS.

References

1. Shaffer, David. ‘Xcel management blamed for cost overruns at Monticello nuclear plant‘. Minneapolis Star-Tribune, July 9, 2014.

2. Sun Day Campaign. ‘Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014‘. July 21, 2014.

3. Lawrence Berkley National Laboratory. ‘2013 Wind Technologies Market Report‘. US Department of Energy. August 18, 2014.

 




387540

There’s no place for nuclear in the ‘Clean Power Plan’ Updated for 2026





Dear Administrator Gina McCarthy,

We strongly support the Environmental Protection Agency’s goals in the Clean Power Plan draft regulation, and we are grateful for the agency’s leadership in setting a critical policy for reducing emissions from the electricity generation sector.

We also appreciate the fact that the Clean Power Plan’s purpose is to create enforceable goals for states to reduce emissions, and a framework (the Best System of Emissions Reduction / BSER) for them to implement and comply with the targets.

The framework must be flexible and adaptable, to account for technological advances and regional differences in energy resources and regulatory systems, but it must also encourage rational and effective policies.

Unfortunately, the treatment of nuclear energy in the draft rule is unsupported by meaningful analysis, and would make it possible for states to implement the rule in ways that are counterproductive to the Clean Power Plan’s purpose of reducing emissions.

The role of nuclear power must be re-evaluated

We are, additionally, very concerned about industry proposals to expand provisions to encourage nuclear. We urge the EPA to conduct a thorough and fact-based analysis of nuclear, and to do the following:

  1. Remove the preservation of existing nuclear reactors from the BSER.
  2. Do not force Georgia, South Carolina, and Tennessee to finish building new reactors.
  3. Conduct a thorough and accurate analysis of the environmental impacts of nuclear power, from radioactive waste and uranium mining to reactor accidents and water use.
  4. Recognize and incorporate the much greater role renewable energy and efficiency can, will, and must play in reducing carbon emissions and replacing both fossil fuels and nuclear.

We recognize that the EPA has undertaken a monumental task in developing the Clean Power Plan – perhaps the most important single step in setting the U.S. on the path to reducing emissions enough to avert the worst of global warming and climate change.

It is essential that we begin making substantial reductions in emissions immediately, and that the institutional inertia and narrow self-interest of utilities and major power companies do not stand in the way of deploying the most cost-effective and environmentally sustainable energy solutions.

For that very reason, it is important the regulation ensures states do not get off on the wrong foot and implement the rule in ways that are counterproductive.

False and irrational assumptions

Unfortunately, the Clean Power Plan’s treatment of nuclear incentivizes the preservation and expansion of a technology that is and has always been the most expensive, inflexible, and dangerous complement to fossil fuels.

The Clean Power Plan incorporates nuclear into the BSER in two ways:

  • Assumes five new reactors will be completed and brought online in the states of Georgia, South Carolina, and Tennessee, and irrationally estimates the cost of doing so as $0. In fact, billions more remain to be spent on these reactors and there is a great deal of uncertainty about when, if ever, they will be completed, facing years of delays and billions in cost overruns. The cost assumption would force states to complete the reactors no matter the cost, rather than enabling them to choose better ways to meet their emissions goals. Even though renewables and efficiency could be deployed at lower cost than nuclear, the draft rule would make it look like they are much more expensive because of the zero-cost assumption about completing the reactors.
  • Encourages states to ‘preserve’ reactors economically at-risk of being closed, equivalent to 6% of each state’s existing nuclear generation. While it is true that about 6% of the nation’s operating reactors may close for economic reasons, this provision encourages every state to subsidize existing reactors, greatly underestimates the cost of doing so, and overestimates their role in reducing emissions. Uneconomical reactors have high and rising operating costs, and cannot compete with renewables and efficiency. If anything, EPA should simply recommend that low-carbon energy sources be replaced with other low-carbon resources, but singling out nuclear for ‘preservation’ suggests it is better for states to lock themselves into obsolete and increasingly uneconomical nuclear.

The rule also says states may utilize two other ways of adding nuclear capacity as options for achieving the goals, even though they are not incorporated in the BSER:

  • New reactors other than those currently in construction. EPA recognizes that new nuclear is too expensive to be included in the BSER, so it should not suggest states consider it as a way of meeting their emissions goals.
  • Power uprate modifications to increase the generation capacity of existing reactors. Power uprates are capital-intensive and expensive, and several recent projects have been cancelled or suffered major cost overruns, in the case of Minnesota’s Monticello reactor, at a total cost greater than most new reactors ($10 million/megawatt). [1]

Rather than suggesting states waste resources on nuclear generation too expensive and infeasible to be included in the BSER, EPA should include an analysis of these problems so that states can better evaluate their options and select lower-cost, more reliable means for reducing emissions, such as renewables and efficiency.

Serious nuclear concerns ignored

The Clean Power Plan also considers some non-air quality impacts of nuclear generation, as it is required to do under the Clean Air Act. However, the EPA’s evaluation is both woefully incomplete and alarmingly inadequate. EPA dismisses concerns about radioactive waste and nuclear power’s impact on water resources, simply characterizing them as equivalent to problems with fossil fuel generation.

In fact, radioactive waste is an intractable problem that threatens the environment for potentially hundreds of thousands of years. In addition, nuclear reactors’ use of water is more intensive than fossil fuel technologies, and a majority of existing reactors utilize the most water-intensive once-through cooling systems.

Regardless, however, rather than only comparing them to fossil fuels, EPA should have compared these impacts to the full range of alternatives, including renewables and efficiency, which do not have such problems.

EPA leaves out a host of other environmental impacts unique to nuclear, including uranium mining and nuclear accidents.

There are over 10,000 abandoned uranium mines throughout the US, which are subject to lax environmental standards, pose major groundwater and public health risks, present serious environmental justice concerns, and could entail billions in site cleanup and remediation costs.

The failure to consider the impacts of a nuclear accident is a glaring oversight, in the wake of the Fukushima disaster. EPA must consider both the environmental and economic impact of nuclear accidents.

Renewables can do the job!

In general, the Clean Power Plan’s consideration of nuclear appears to be based on a dangerous fallacy: that closed reactors must be replaced with fossil fuel generation, presumably because other low- / zero-carbon resources could not make up the difference.

In fact, renewable energy growth has surpassed all other forms of new generation for going on three years, making up 48% of all new electricity generation brought online from 2011 to July 2014. [2]

The growth rate of wind energy alone (up to 12,000 MW per year) would be sufficient to replace all of the ‘at-risk’ nuclear capacity within two years, at lower cost than the market price of electricity, [3] let alone at the subsidized rate for nuclear the draft rule suggests.

Assuming that closed reactors will be replaced with fossil fuel generation both encourages states to waste resources trying to ‘preserve’ (or even build) uneconomical reactors rather than on more cost-effective and productive investments in renewables and efficiency.

While states are free to develop their implementation plans without using the specific energy sources included in the BSER, the rule should not promote such foolishness.

No amount of spending or subsidies for nuclear has been effective at reducing the technology’s costs nor overcoming lengthy construction times and delays, whereas spending on renewables and efficiency has had the effect of lowering their costs and increasing their rate of deployment.

The economic problems facing currently operating reactors merely underscore the point that nuclear is not a cost-effective way of reducing emissions.

We are hopeful that the Clean Power Plan will be a watershed in setting the country on a path to emissions reductions and climate action, and we are grateful to the EPA for taking this step.

We believe that correcting the problems with the way nuclear is considered in the draft rule, and increasing the role of renewables and efficiency, will make the Clean Power Plan much stronger and lead states to implement it more productively and cost-effectively.

 


 

Action – organizations: Make sure your organization is signed on to our comments on the Clean Power Plan, which expand on the points above. The comments, and current list of endorsers, are here. If your organization is not listed, please sign on now by sending an e-mail to me at nirsnet@nirs.org with your name, title, organization name, city, and state (and country if outside the US – we encourage our international friends to support us in this effort!). Please sign on by midnight, Sunday, November 30, 2014.

Action – individuals: Please send in your comments on our action page here. And please share the action page with your friends and colleagues using the logos at its top, or share our previous Alert on the issue on Facebook and Twitter here. More than 19,000 of you have acted so far; we want to top 20,000 (do I hear 25,000?) comments before the December 1 deadline. Your help in outreach is essential to meet that goal.

Tim Judson is Executive Director of Nuclear Information & Resource Service, Takoma Park, MD.

For full list of signatories see NIRS.

References

1. Shaffer, David. ‘Xcel management blamed for cost overruns at Monticello nuclear plant‘. Minneapolis Star-Tribune, July 9, 2014.

2. Sun Day Campaign. ‘Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014‘. July 21, 2014.

3. Lawrence Berkley National Laboratory. ‘2013 Wind Technologies Market Report‘. US Department of Energy. August 18, 2014.

 




387540

Hinkley C hovers on the brink – Europe’s nuclear giants face meltdown Updated for 2026





Plans to build two giant nuclear reactors at Hinkley Point in south-west England are being reviewed as French energy companies now seek financial backing from China and Saudi Arabia – while the British government considers whether it has offered vast subsidies for a white elephant.

A long-delayed final decision on whether the French electricity utility company EDF will build two 1.6GW European Pressurised water Reactors at Hinkley Point in Somerset – in what would be the biggest construction project in Europe – was due in the new year, but is likely to drift again.

Construction estimates have already escalated to £25 billion, which is £9 billion more than a year ago, and four times the cost of putting on the London Olympics last year.

Costs escalate. And escalate …

Two prototypes being built in Olikuoto, Finland, and Flamanville, France, were long ago expected to be finished and operational, but are years late and costs continue to escalate.

Until at least one of these is shown to work as designed, it would seem a gamble to start building more, but neither of them is expected to produce power until 2017.

With Germany phasing nuclear power out altogether and France reducing its dependence on the technology, all the industry’s European hopes are on Britain’s plans to build 10 new reactors. But British experts, politicians and businessmen have begun to doubt that the new nuclear stations are a viable proposition.

Steve Thomas, professor of energy policy at the University of Greenwich, London, said: “The project is at very serious risk of collapse at the moment. Only four of those reactors have ever been ordered. Two of them are in Europe, and both of those are about three times over budget. One is about five or six years late and the other is nine years late. Two more are in China and are doing a bit better, but are also running late.”

Tom Greatrex, the British Labour party opposition’s energy spokesman, called on the National Audit Office to investigate whether the nuclear reactors were value for money for British consumers.

Peter Atherton, of financial experts Liberum Capital, believes the enormous cost and appalling track record in the nuclear industry of doing things on time mean that ministers should scrap the Hinkley plans.

Billionaire businessman Jim Ratcliffe, who wants to invest £640 million in shale gas extraction in the UK, said that the subsidy that the British government would pay for nuclear electricity is “outrageous”.

Cold feet in the Treasury as liabilities are set to soar

Finding the vast sums of capital needed to finance the project is proving a problem. Both EDF and its French partner company, Areva, which designed the European Pressurised water Reactor (EPR), have money troubles. Last week, Areva suspended future profit predictions and shares fell by 20%.

Chinese power companies have offered to back the project, but want many of the jobs to go to supply companies back home – something the French are alarmed about because they need to support their own ailing nuclear industry. Saudi Arabia is offering to help too, but this may not go down well in Britain.

On the surface, all is well. Preparation of the site is already under way on the south-west coast of England, with millions being spent on earthworks and new roads. The new reactors would be built next to two existing much smaller nuclear stations – one already closed and the second nearing the end of its life. The new ones would produce 7% of Britain’s electricity.

But leaks from civil servants in Whitehall suggest that the government may be getting cold feet about its open-ended guarantees. The industry has a long history of cost overruns and cancellations of projects when millions have already been spent – including an ill-fated plan to build a new nuclear station on the same site 20 years ago.

The Treasury is having a review because of fears that, once this project begins, so much money will have been invested that the government will have to bail it out with billions more of taxpayers’ money to finish it – or write off huge sums.

The whole project is based on British concern about its ageing nuclear reactors, which produce close on 20% of the country’s electricity. The government wanted a new generation of plants to replace them and eventually produce most of the country’s power.

£37 billion subsidy package approved by EU – but is it legal?

In order to induce EDF to build them, it offered subsidies of £37 billion in guaranteed electricity prices over the 60-year life of the reactors. This would double the existing cost of electricity in the UK.

The European Commission gave permission for this to happen, despite the distortion to the competitive electricity market. But this decision is set to be challenged in the European Court by the Austrian government and renewable energy companies, which will further delay the project.

Since the decision was made to build nuclear power stations, renewable energy has expanded dramatically across Europe and costs have dropped. Nuclear is now more costly than wind and solar power. In Britain alone, small-scale solar output has increased by 26% in the last year.

In theory, there are a number of other nuclear companies – from the US, China, Japan and Russia – keen to build stations of their own design in Britain, but they would want the same price guarantees as EDF for Hinkley Point.

With a general election in the UK looming in May next year, no decisions will be reached on any of these projects any time soon. And a new government might think renewables are a better bet.

 


 

Paul Brown, a former environment correspondent for the Guardian, now writes for Climate News Network. He began working as a reporter on a weekly paper in Sussex and progressed to evening and morning newspapers before joining The Guardian in 1981. In his role as environment correspondent, he travelled to more than 50 countries, and to the Arctic and Antarctic regions.

This article was first published by Climate News Network.

 

 




387317

Hinkley C hovers on the brink – Europe’s nuclear giants face meltdown Updated for 2026





Plans to build two giant nuclear reactors at Hinkley Point in south-west England are being reviewed as French energy companies now seek financial backing from China and Saudi Arabia – while the British government considers whether it has offered vast subsidies for a white elephant.

A long-delayed final decision on whether the French electricity utility company EDF will build two 1.6GW European Pressurised water Reactors at Hinkley Point in Somerset – in what would be the biggest construction project in Europe – was due in the new year, but is likely to drift again.

Construction estimates have already escalated to £25 billion, which is £9 billion more than a year ago, and four times the cost of putting on the London Olympics last year.

Costs escalate. And escalate …

Two prototypes being built in Olikuoto, Finland, and Flamanville, France, were long ago expected to be finished and operational, but are years late and costs continue to escalate.

Until at least one of these is shown to work as designed, it would seem a gamble to start building more, but neither of them is expected to produce power until 2017.

With Germany phasing nuclear power out altogether and France reducing its dependence on the technology, all the industry’s European hopes are on Britain’s plans to build 10 new reactors. But British experts, politicians and businessmen have begun to doubt that the new nuclear stations are a viable proposition.

Steve Thomas, professor of energy policy at the University of Greenwich, London, said: “The project is at very serious risk of collapse at the moment. Only four of those reactors have ever been ordered. Two of them are in Europe, and both of those are about three times over budget. One is about five or six years late and the other is nine years late. Two more are in China and are doing a bit better, but are also running late.”

Tom Greatrex, the British Labour party opposition’s energy spokesman, called on the National Audit Office to investigate whether the nuclear reactors were value for money for British consumers.

Peter Atherton, of financial experts Liberum Capital, believes the enormous cost and appalling track record in the nuclear industry of doing things on time mean that ministers should scrap the Hinkley plans.

Billionaire businessman Jim Ratcliffe, who wants to invest £640 million in shale gas extraction in the UK, said that the subsidy that the British government would pay for nuclear electricity is “outrageous”.

Cold feet in the Treasury as liabilities are set to soar

Finding the vast sums of capital needed to finance the project is proving a problem. Both EDF and its French partner company, Areva, which designed the European Pressurised water Reactor (EPR), have money troubles. Last week, Areva suspended future profit predictions and shares fell by 20%.

Chinese power companies have offered to back the project, but want many of the jobs to go to supply companies back home – something the French are alarmed about because they need to support their own ailing nuclear industry. Saudi Arabia is offering to help too, but this may not go down well in Britain.

On the surface, all is well. Preparation of the site is already under way on the south-west coast of England, with millions being spent on earthworks and new roads. The new reactors would be built next to two existing much smaller nuclear stations – one already closed and the second nearing the end of its life. The new ones would produce 7% of Britain’s electricity.

But leaks from civil servants in Whitehall suggest that the government may be getting cold feet about its open-ended guarantees. The industry has a long history of cost overruns and cancellations of projects when millions have already been spent – including an ill-fated plan to build a new nuclear station on the same site 20 years ago.

The Treasury is having a review because of fears that, once this project begins, so much money will have been invested that the government will have to bail it out with billions more of taxpayers’ money to finish it – or write off huge sums.

The whole project is based on British concern about its ageing nuclear reactors, which produce close on 20% of the country’s electricity. The government wanted a new generation of plants to replace them and eventually produce most of the country’s power.

£37 billion subsidy package approved by EU – but is it legal?

In order to induce EDF to build them, it offered subsidies of £37 billion in guaranteed electricity prices over the 60-year life of the reactors. This would double the existing cost of electricity in the UK.

The European Commission gave permission for this to happen, despite the distortion to the competitive electricity market. But this decision is set to be challenged in the European Court by the Austrian government and renewable energy companies, which will further delay the project.

Since the decision was made to build nuclear power stations, renewable energy has expanded dramatically across Europe and costs have dropped. Nuclear is now more costly than wind and solar power. In Britain alone, small-scale solar output has increased by 26% in the last year.

In theory, there are a number of other nuclear companies – from the US, China, Japan and Russia – keen to build stations of their own design in Britain, but they would want the same price guarantees as EDF for Hinkley Point.

With a general election in the UK looming in May next year, no decisions will be reached on any of these projects any time soon. And a new government might think renewables are a better bet.

 


 

Paul Brown, a former environment correspondent for the Guardian, now writes for Climate News Network. He began working as a reporter on a weekly paper in Sussex and progressed to evening and morning newspapers before joining The Guardian in 1981. In his role as environment correspondent, he travelled to more than 50 countries, and to the Arctic and Antarctic regions.

This article was first published by Climate News Network.

 

 




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