by Ludi » Thu 10 Feb 2011, 20:58:38
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Nukes aren't really that expensive.
I guess someone should tell that to the states who are trying to get plants built, like Texas. They can't find domestic investors and want funding from the federal government, which is running a deficit. Or from foreign investors like Japan.
"One of the big problems with nuclear power is the enormous upfront cost. These reactors are extremely expensive to build. While the returns may be very great, they're also very slow. It can sometimes take decades to recoup initial costs. Since many investors have a short attention span, they don't like to wait that long for their investment to pay off.
The costs are also sometimes volatile, according to the NY Times piece. So you've got a situation where investors finally agree to endure a project with a long time-horizon for break-even, and then the costs go up. It's pretty easy to see why they would be unhappy.
But that's not all: at this time, other forms of energy are relatively cheap. Natural gas is plentiful and inexpensive. So it's hard for energy companies to sell a future source of nuclear energy when present sources are doing the trick for cheap.
If you add all that together, you have a very difficult formula for getting more nuclear reactor projects off the ground. That last problem, in particular, isn't exclusive to nuclear, however. Solar and wind also suffer from being relatively expensive. In time, as fossil fuels become more limited in supply, their prices will rise. But by then, if the U.S. doesn't have an energy infrastructure in place to utilize other sources like nuclear, solar, and wind, the economy will be adversely affected as energy prices rise with insufficient energy available from alternatives.
There's no clear solution to this problem other than even more aggressive intervention by the government. The current struggles to build new reactors appear to show that loan guarantees aren't enough. Bigger subsidies might also be necessary to get investors to stomach the high upfront costs and slow returns of nuclear reactors. Perhaps a public-private investment vehicle would be helpful. If we wait on the market to come around, it will likely be too late, as energy prices will already be increasing quickly as fossil fuel supplies shrink."
http://www.theatlantic.com/business/arc ... ing/70591/