Nuke Cost Concerns in India Too

Very excellent article in the Business Standard of New Delhi.

Chasing the Nuclear Power Chimera - Business Standard - 30 Jul 08

"Soaring costs of raw materials, special components and uranium have put a question mark over the viability of nuclear power, especially since the costs of renewable energy, like solar, are showing a dramatic drop. Across the world, projects are facing huge cost overruns and inordinate delays as the top names in the reactor business grapple with a host of problems, from a sharp spike in the prices for iron, steel and concrete, to limited supplies of reactor parts and a crippling shortage of skilled manpower.

That’s why the nuclear power renaissance, which has been talked about for the past 4-5 years, shows no signs of materialising. Not a single reactor has been ordered in the US since 1978 — and few utilities with nuclear plants are announcing new projects despite the blandishments offered by the US Energy Policy Act of 2005: loan guarantees up to 80 per cent of the project cost, production tax credits of $18 per MWe for new nuclear capacity through 2021 (this would amount to several hundred million dollars) and insurance protection up to $500 million against delays during construction.

In spite of this several American utilities have announced that they are rethinking their nuclear projects or putting them in cold storage because the risks have increased. Capital costs have soared from $1,500/kW to over $6,000/kW and are still rising. In October, Moody’s Investor Service estimated the 'overnight cost' of a new nuclear plant would be between $5,000 and $6,000 per kilowatt-hour, but warned (in its report on nuclear generation): 'We believe the ultimate costs associated with building new nuclear generation do not exist today and that the current cost estimates represent best estimates, which are subject to change.'"

Nuke Cost Concerns in India Too

Very excellent article in the Business Standard of New Delhi.

Chasing the Nuclear Power Chimera - Business Standard - 30 Jul 08

"Soaring costs of raw materials, special components and uranium have put a question mark over the viability of nuclear power, especially since the costs of renewable energy, like solar, are showing a dramatic drop. Across the world, projects are facing huge cost overruns and inordinate delays as the top names in the reactor business grapple with a host of problems, from a sharp spike in the prices for iron, steel and concrete, to limited supplies of reactor parts and a crippling shortage of skilled manpower.

That’s why the nuclear power renaissance, which has been talked about for the past 4-5 years, shows no signs of materialising. Not a single reactor has been ordered in the US since 1978 — and few utilities with nuclear plants are announcing new projects despite the blandishments offered by the US Energy Policy Act of 2005: loan guarantees up to 80 per cent of the project cost, production tax credits of $18 per MWe for new nuclear capacity through 2021 (this would amount to several hundred million dollars) and insurance protection up to $500 million against delays during construction.

In spite of this several American utilities have announced that they are rethinking their nuclear projects or putting them in cold storage because the risks have increased. Capital costs have soared from $1,500/kW to over $6,000/kW and are still rising. In October, Moody’s Investor Service estimated the 'overnight cost' of a new nuclear plant would be between $5,000 and $6,000 per kilowatt-hour, but warned (in its report on nuclear generation): 'We believe the ultimate costs associated with building new nuclear generation do not exist today and that the current cost estimates represent best estimates, which are subject to change.'"

Olkiluoto 3 Lights Up

Fire Threatens Reactor Construction Site - Uutiset - 30 Jul 08

"A potentially dangerous fire erupted at the building site of the Olkiluoto 3 nuclear power plant on Finland's west coast early Tuesday morning.

" . . . extinguishing the fire took nearly four hours as it was burning in two hard-to-reach places. There was a risk that it could have turned into a major blaze. Five units were involved in putting out the fire.

The utility TVO said it was too early to say how much the damage cost or whether the fire would have any effect on construction at the plant."

Olkiluoto 3 Lights Up

Fire Threatens Reactor Construction Site - Uutiset - 30 Jul 08

"A potentially dangerous fire erupted at the building site of the Olkiluoto 3 nuclear power plant on Finland's west coast early Tuesday morning.

" . . . extinguishing the fire took nearly four hours as it was burning in two hard-to-reach places. There was a risk that it could have turned into a major blaze. Five units were involved in putting out the fire.

The utility TVO said it was too early to say how much the damage cost or whether the fire would have any effect on construction at the plant."

Indian Nuclear Progress Rebutted

This just in from the Wall Street Journal's letters department on why a recent glowing report by a former Indian AEC big whig was far from accurate. So to speak. They make three correcting points but I'll only note one below. Once again, you can't get there from here.

New Delhi's Nuclear Gains - WSJ - 30 Jul 08

"Finally, the deal will not help India meet its burgeoning energy needs. Even with the deal, nuclear power is not expected to exceed 8-9% of India's total electrical capacity through 2032. Instead the United States should encourage and assist India with efforts to burn coal more cleanly, devise better energy efficiency and conservation programs, modernize and expand its grid and develop decentralized renewable energy resource generation."

Indian Nuclear Progress Rebutted

This just in from the Wall Street Journal's letters department on why a recent glowing report by a former Indian AEC big whig was far from accurate. So to speak. They make three correcting points but I'll only note one below. Once again, you can't get there from here.

New Delhi's Nuclear Gains - WSJ - 30 Jul 08

"Finally, the deal will not help India meet its burgeoning energy needs. Even with the deal, nuclear power is not expected to exceed 8-9% of India's total electrical capacity through 2032. Instead the United States should encourage and assist India with efforts to burn coal more cleanly, devise better energy efficiency and conservation programs, modernize and expand its grid and develop decentralized renewable energy resource generation."