Government to rip up rulebook and subsidise new nuclear plants

[bananas]

Source: The Independent

The Government is planning to write a "blank cheque" to the nuclear industry by underwriting the cost of new power stations, leading energy academics have claimed in a letter to The Independent.

Under a major policy U-turn being considered by ministers, the taxpayer would be left to cover the cost of budget over-runs or building delays at new nuclear plants. Costly setbacks are almost inevitable with such complex construction projects.

<snip>

In a letter to The Independent, Paul Dorfman of Warwick University and nine other energy experts write: "The Government have promised that they would never, under any circumstances, subsidise nuclear power. However, the Coalition Energy Minister John Hayes is now considering a major U-turn in energy policy by giving a blank cheque to nuclear by 'underwriting' construction cost over-runs."

<snip>

Mr Dorfman said: "Nuclear companies are saying to the Government, unless you do something very serious and very soon, we're not going to undertake to build these new power stations you want. The Government has promised never under any circumstances to subsidise nuclear power but John Hayes has said he is considering underwriting the construction costs, which is a subsidy."

<snip>

Read more: http://www.independent.co.uk/news/uk/politics/government-to-rip-up-rulebook-and-subsidise-new-nuclear-plants-8219870.html

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The nuclear industry is corrupt and has a corrupting influence on politics.

This is one of the worst things to do, it removes accountability.
There's an old saying that work expands to fill the budget.
This is going to suck money away from more cost-effective efficiency and renewables,
leaving England even worse off.

You just can't trust the nuclear industry.

[intaglio]

1. First, Please amend your thread title to "UK" or "GB Government ..."

Second, I'm not surprised but I still don't see these dinosaurs ever being built. Even with expedited planning it will be 10 to 15 years before the first is commissioned.

This is probably a cover for more natural gas generation and LNG storage (unfortunately), meanwhile real innovators will be finding better energy storage solutions for solar and wind generated power.

[XemaSab]

2. Solar and wind currently depend on natural gas

n/t

[intaglio]

3. Ummm, care to explain?

If you mean the "overnight" or "low resource" days for renewables then, at present, LNG supports renewable generation. This is why I mentioned energy storage.

Another way of looking at it is that sustained construction of LNG plant will depend upon variability in the energy supply from renewables and the lack of any really high density energy storage method.

[XemaSab]

4. Wind never delivers an even amount of energy

Natural gas is used to smooth out the curve.

[dipsydoodle]

6. SOP for LBN reads :

Use the published title of the story as the title of the discussion thread.

[Ash_F]

5. I used to be pro nuclear energy but the developments in Japan have given me pause. /nt

[wordpix]

8. "pause?" I would think Fuku would stop you and this industry dead in your tracks

[Throckmorton]

7. Its not the new plants that scare me,

Its the old plants, undergoing life extension, particularly the merchant plants that are make far less money then the shareholders want. The price of natural gas is driving the wholesale price of electricity down, and the merchant plants rely solely on profit from sales, no ratepayer prudency reviews in front of the DPUC to shore up the bottom line.

[wordpix]

9. they BOTH scare me, we're subsidizing the old plants for insurance - priv insurance only covers

$350 million per plant so if we have a Fuku type disaster, taxpayers are on the hook for the rest. Multiply by the number of old nuke plants around the country and you can see this is a financial disaster in the making.

Also, the old nukes ran out of space long ago to hold the spent fuel rods in their "temporary" pools - which have been "temporary" going on 40 years or so. But they keep piling the rods in and around the nuke plant sites with no solution to the waste storage in site in any state or nationally.

As for NEW, the industry cannot find enough capital to build ONE new one so wants billion$ in taxpayer guaranteed loans. Before Fuku, Pres. O was saying he supported something like $60 billion in loans and even after Fuku, he said he supported loans but dropped the amount to $32 billion or thereabouts. Lately, notice he hasn't said word one.

That means if for some reason the "We Built It" industry can't finish a plant, we taxpayers are on the hook for whatever $$$ we've guaranteed.

Wake up, nuclear advocates, this industry needs to go DOWN, and quick.

[bananas]

10. Any plants in particular? nt

[Throckmorton]

11. All of the pre generic design critera plants for starters.

Plus all of the plants entering life extension in the next 7 years.