Antinuclear

Australia can learn from the American experience with nuclear power

Amory B Lovins, May 21, 2024,  https://reneweconomy.com.au/australia-can-learn-from-the-american-experience-with-nuclear-power/#google_vignette

During my current visit to Australia I’ve been surprised to see nuclear power promoted by the federal Coalition and by certain media.

Rather than fact-check the questionable claims of nuclear proponents, let me here outline the recent experience with nuclear power in my home country, the United States, and then discuss how that experience could inform the energy debate in Australia.

Nuclear power in the US is in decline. A dozen reactors have been shut down over the past decade — 41 in all. The decline will continue because US reactors average 42 years old, beyond their original design life. Of 259 US power reactors ordered since 1955, 94 are still in service; by 2017, only 28 remained competitive and hadn’t suffered at least one outage of at least a year. That’s an 11 percent success rate.

Only two nuclear power construction projects have commenced this century, and Australians should take careful note of those projects’ failure despite massive government support.

The V.C. Summer project in South Carolina, comprising two Westinghouse AP1000 reactors, began construction for an estimated US$11.5bn total in 2013. It was abandoned in 2017 after costs rose to US$25bn, wasting US$9bn. Westinghouse soon filed for bankruptcy protection.

In addition to a $US9 billion hole in the ground, the V.C. Summer fiasco gave rise to the ‘nukegate’ scandal, a web of corruption that has already seen some culprits jailed with others likely to follow.

The other US reactor construction project was the Vogtle project in Georgia, also comprising two AP1000 reactors. It was recently completed but many years behind schedule and at extravagant cost, echoing similar experience in Finland, France, and the UK. 

Westinghouse said in 2006 that it could build an AP1000 reactor for as little as US$1.4 billion. The Vogtle project’s final cost was over 10 times greater at US$17.5 billion per reactor. That money that would have been far better spent on renewables and energy efficiency programs. Buying nuclear power instead displaced less fossil fuel per year and per dollar, worsening climate change.

Small modular reactors

The failure of large reactor construction projects has led the industry to pivot to so-called small modular reactors (SMRs). But SMRs don’t exist, unless you count two demonstration plants in Russia and China. SMRs are unlikely to improve the safety, security or waste problems of large reactors, and SMRs’ economics are even more unattractive than large reactors’.

NuScale Power, leading America’s most advanced SMR project, recently abandoned its flagship project in Idaho due to soaring costs despite about US$4bn in US government subsidies. With no other credible customers, the firm seems more likely to go bankrupt than to build any SMRs.

NuScale’s most recent cost estimate was an astronomical US$9.3 billion for a 462 megawatt (MW) plant with six 77-MW reactors. That’s US$20,100 per kilowatt (kW). Compare the actual 2023 market prices per kW found by leading US investment firm Lazard: US$700-1400 for utility scale solar PV and US$1025-1700 for onshore wind. 

Nuclear’s higher capital cost per kW far outweighs its greater output per kW, leaving it several-fold out of the money before counting its substantial operating costs. And including grid integration costs would actually widen nuclear’s disadvantage because its outages tend to be bigger, longer, sharper, and less predictable than solar and wind power’s variations, requiring more and costlier backup.

Other companies hoping to develop SMRs or so-called ‘advanced’ reactors are faring no better. Indeed a pro-nuclear lobby group noted late last year that efforts to commercialize a new generation of ‘advanced’ nuclear reactors “are simply not on track” and it warned nuclear enthusiasts not to “whistle past this graveyard”.

Coal-to-nuclear

The Coalition’s energy spokesperson Ted O’Brien claims that “evidence keeps mounting that a coal-to-nuclear strategy is good for host communities, and especially workers as zero-emissions nuclear plants offer more jobs and higher paying ones.”

Mr. O’Brien has promoted Terrapower’s plan to replace coal with nuclear in Wyoming but the company is at the early stages of a licensing process and it is unclear whether finance can be secured or whether the adventurous new technology can ever get built and compete on the grid despite about US$2bn of government subsidy.

In 2009, applications for 31 new reactors were pending in the US. Nothing eventuated other than the abandoned South Carolina project and the recently completed Georgia project. No reactors — large or small — are currently under construction in the US. For the time being at least, we’re being spared the economic and climate costs of further disastrous nuclear projects.

Lessons for Australia

What lessons can Australia learn from the US experience?

Industry claims should be treated with skepticism. Early cost estimates for the Vogtle project were out by a factor of 10. Westinghouse’s claim that it could build an AP1000 reactor in “approximately 36 months” also proved to be wildly inaccurate: the Vogtle reactors took 10 and 11 years to build; closer to 20 years if you include the planning and licensing process.

Proponents claiming that Australia could have reactors operating by the mid-2030s are sadly mistaken. Most or all of Australia’s remaining coal power plants will have closed long before nuclear reactors could take their place in the energy market.

It’s vital that Australians consider the fact that you would be starting a nuclear power industry with none of the United States’ 70-plus years’ experience – despite which 42 reactor projects were abandoned, 41 built but closed, and scores now operate only thanks to government rescues. It would be folly to imagine that Australia can do better.

The point was made sharply by NSW Chief Scientist Hugh Durrant-Whyte in a 2020 report prepared for the NSW Cabinet. A former Chief Scientific Adviser at the UK Ministry of Defence, Dr Durrant-Whyte said: “The hard reality is Australia has no skills or experience in nuclear power plant building, operation or maintenance – let alone in managing the fuel cycle. Realistically, Australia will be starting from scratch in developing skills in the whole nuclear power supply chain.”

Likewise, former Australian Chief Scientist Dr Alan Finkel states: “Any call to go directly from coal to nuclear is effectively a call to delay decarbonisation of our electricity system by 20 years.”

I’m pleased to learn that the Australian government aims to double renewable supply to the National Energy Market to reach 82 percent by 2030. It’s especially impressive to witness the world-class renewable energy revolution in South Australia, where renewables provide 74 percent of electricity on average and the state government aims to reach 100 percent net renewables as soon as 2027.

Nuclear power is a minor distraction, adding each year at best only as much electricity supply as renewables add every few days. It has no business case or operational need anywhere. Especially it has no place in Australia’s energy future. No one who understands energy markets would claim otherwise.

Amory Lovins has been an energy advisor to major firms and governments in 70+ countries for 50+ years; has authored 31 books and about 900 papers; is an integrative designer of superefficient buildings, factories, and vehicles; and has won many of the world’s top energy and environmental awards. He is Adjunct Professor of Civil and Environmental Engineering at Stanford University.

May 24, 2024 - Posted by Christina Macpherson | politics