Antinuclear

Obama’s pro-nuclear push could founder in money problems

experts are predicting a repeat of the experience of the 1980’s, in which the costs of many projects soared in price until they became prohibitive and the plants were abandoned before completion.

Nuclear Power Gets Strong Push From White House

The New York Times By MATTHEW L. WALD

January 29, 2010

The Obama administration moved vigorously on two fronts Friday to promote nuclear power, proposing to triple federal loan guarantees for new projects and appointing a high-level panel to study what to do with nuclear waste.

Administration officials confirmed that their federal budget request next week for 2011 would raise potential loan guarantees to more than $54 billion from $18.5 billion……………..

Because the loan guarantees are supposed to cover 80 percent of the construction cost, the current sum now available would cover only about three projects.

Energy Secretary Steven Chu has been saying for weeks that the administration would seek a greater amount; commercial investment has been hard to come by, because there is so much uncertainty about the cost and schedule for building the new plants……………..

In theory, the federal government could profit from the guarantees by collecting fees from the power plant’s builders if profits from the reactors allow utilities to repay of the loans. But some experts are predicting a repeat of the experience of the 1980’s, in which the costs of many projects soared in price until they became prohibitive and the plants were abandoned before completion.

Opponents have complained that the loan guarantees for projects that accnot draw commercial investment amount to “nuclear socialism.”

Companies that want to build reactors are also hoping to cobble together loan guarantees from the governments of France and Japan, which are home to companies that want to sell reactor components. The Nuclear Regulatory Commission intends to begin issuing licenses in the next few months, at which point financing would be a crucial issue.

Nuclear Power Gets Strong Push From White House – NYTimes.com

January 30, 2010 - Posted by Christina Macpherson | 1 | antinuclear, nuclear, nuclear wastes