US utilities sceptical over nuclear plants "If you were a utility CEO and looked at your world today, you would just do gas and wind," Mr Immelt says. "You would say [they are] easier to site, digestible today [and] I don't have to bet my company on any of this stuff. You would never do nuclear. The economics are overwhelming." The US government has tried to win over nervous utilities by combining what were two separate licensing processes for building and operating nuclear plants. NRG Energy is seeking a single licence to build and operate, which may take four years. Under the old system, the process could take 11 years. It was possible for a power company to get a licence to build a plant but then fail to obtain approval to operate it, after pouring billions of dollars into construction. Many in the industry recall a $5.3bn New York plant that, once completed in 1984, could not overcome public resistance and be brought on stream.
"If you were a utility CEO and looked at your world today, you would just do gas and wind," Mr Immelt says. "You would say [they are] easier to site, digestible today [and] I don't have to bet my company on any of this stuff. You would never do nuclear. The economics are overwhelming."
The US government has tried to win over nervous utilities by combining what were two separate licensing processes for building and operating nuclear plants.
NRG Energy is seeking a single licence to build and operate, which may take four years. Under the old system, the process could take 11 years. It was possible for a power company to get a licence to build a plant but then fail to obtain approval to operate it, after pouring billions of dollars into construction. Many in the industry recall a $5.3bn New York plant that, once completed in 1984, could not overcome public resistance and be brought on stream.
A reactor is just a too big an investment for most companies in a deregulated market. Screw it up and the entire company might go down the drain. It's even worse as you don't have to screw it up for it too fail. Things far out of your control, like gas prices, might destroy your business.
The modularity of wind and gas (you can't build 200 MW of nuclear) is a great competitive edge as long as the State refuse to regulate the market. Even if nuclear might produce cheaper power than wind or gas on a per kWh basis.
With a carbon tax or cap, the nuclear investment becomes more profitable, making the higher risks more worthwhile. So would loan guarantees. But what's really needed is either a reregulated power market or loan guarantees, or preferably both. Peak oil is not an energy crisis. It is a liquid fuel crisis.
