Quantcast
Energy

Renewables Help Push Nuclear Giants to Brink of Collapse

Plans to build two giant nuclear reactors in south-west England are being reviewed as French energy companies now seek financial backing from China and Saudi Arabia—while the British government considers whether it has offered vast subsidies for a white elephant.

Early stages of construction on the Flamanville 3 nuclear reactor in France, which was due to open in 2012. Photo credit: Schoella via Wikimedia Commons

A long-delayed final decision on whether the French electricity utility company EDF will build two 1.6 gigawatt European Pressurised water Reactors at Hinkley Point in Somerset—in what would be the biggest construction project in Europe—was due in the new year, but is likely to drift again.

Construction estimates have already escalated to £25 billion, which is £9 billion more than a year ago, and four times the cost of putting on the London Olympics last year.

Costs Escalate

Two prototypes being built in Olikuoto, Finland and Flamanville, France, were long ago expected to be finished and operational, but are years late and costs continue to escalate. Until at least one of these is shown to work as designed, it would seem a gamble to start building more, but neither of them is expected to produce power until 2017.

With Germany phasing nuclear power out altogether and France reducing its dependence on the technology, all the industry’s European hopes are on Britain’s plans to build 10 new reactors. But British experts, politicians and businessmen have begun to doubt that the new nuclear stations are a viable proposition.

Steve Thomas, professor of energy policy at the University of Greenwich, London, said: “The project is at very serious risk of collapse at the moment. Only four of those reactors have ever been ordered. Two of them are in Europe, and both of those are about three times over budget. One is about five or six years late and the other is nine years late. Two more are in China and are doing a bit better, but are also running late.”

Tom Greatrex, the British Labour party opposition’s energy spokesman, called on the National Audit Office to investigate whether the nuclear reactors were value for money for British consumers.

Peter Atherton, of financial experts Liberum Capital, believes the enormous cost and appalling track record in the nuclear industry of doing things on time mean that ministers should scrap the Hinkley plans.

Billionaire businessman Jim Ratcliffe, who wants to invest £640 million in shale gas extraction in the UK, said that the subsidy that the British government would pay for nuclear electricity is “outrageous."

Finding the vast sums of capital needed to finance the project is proving a problem. Both EDF and its French partner company, Areva, which designed the European Pressurised water Reactor (EPR), have money troubles. Last week, Areva suspended future profit predictions and shares fell by 20 percent.

Chinese power companies have offered to back the project, but want many of the jobs to go to supply companies back home—something the French are alarmed about because they need to support their own ailing nuclear industry. Saudi Arabia is offering to help too, but this may not go down well in Britain.

On the surface, all is well. Preparation of the site is already under way on the south-west coast of England, with millions being spent on earthworks and new roads. The new reactors would be built next to two existing much smaller nuclear stations—one already closed and the second nearing the end of its life. The new ones would produce 7 percent of Britain’s electricity.

But leaks from civil servants in Whitehall suggest that the government may be getting cold feet about its open-ended guarantees. The industry has a long history of cost overruns and cancellations of projects when millions have already been spent—including an ill-fated plan to build a new nuclear station on the same site 20 years ago.

The Treasury is having a review because of fears that, once this project begins, so much money will have been invested that the government will have to bail it out with billions more of taxpayers’ money to finish it—or write off huge sums.

The whole project is based on British concern about its aging nuclear reactors, which produce close on 20 percent of the country’s electricity. The government wanted a new generation of plants to replace them and eventually produce most of the country’s power.

Guaranteed Prices

In order to induce EDF to build them, it offered subsidies of £37 billion in guaranteed electricity prices over the 60-year life of the reactors. This would double the existing cost of electricity in the UK.

The European Commission gave permission for this to happen, despite the distortion to the competitive electricity market. But this decision is set to be challenged in the European Court by the Austrian government and renewable energy companies, which will further delay the project.

Since the decision was made to build nuclear power stations, renewable energy has expanded dramatically across Europe and costs have dropped. Nuclear is now more costly than wind and solar power. In Britain alone, small-scale solar output has increased by 26 percent in the last year.

In theory, there are a number of other nuclear companies—from the U.S., China, Japan and Russia—keen to build stations of their own design in Britain, but they would want the same price guarantees as EDF for Hinkley Point.

With a general election in the UK looming in May next year, no decisions will be reached on any of these projects any time soon. And a new government might think renewables are a better bet.

YOU MIGHT ALSO LIKE

The Slow Death of Nuclear Power and the Rise of Renewables

Solar Energy Could Power America 100 Times Over

Renewables Beat Coal, Oil and Nukes by 35 Times in New Energy Capacity

Show Comments ()
Sponsored
Rice University marine biologist Adrienne Correa takes samples at a reef in Flower Garden Banks. Jesse Cancelmo / Rice University

Hurricane Harvey Runoff Threatens Coral Reefs

Hurricane Harvey's record rains didn't just unleash a torrent of floodwaters into the Gulf of Mexico—this freshwater could be harming coral reefs which require saltwater to live, according to new research.

After Harvey dumped more than 13 trillion gallons of rain over southeast Texas, researchers detected a 10 percent drop in salinity at the Flower Garden Banks National Marine Sanctuary, located 100 miles off the coast of Galveston, Texas.

Keep reading... Show less

Pruitt Wants to Make the EPA Less Accountable to the Public

When the U.S. Environmental Protection Agency (EPA) breaks the law by missing deadlines, allowing polluters to violate regulations that protect our health and environment, one way the public holds it accountable is by taking the agency to court. Scott Pruitt and his corporate polluter allies see this as a problem, so Monday, the administrator moved to curtail the agency's practice of settling lawsuits with outside groups, making it easier to skirt the law.

"Pruitt's doing nothing more than posturing about a nonexistent problem and political fiction," John Walke, director of the Natural Resources Defense Council's Climate and Clean Air program said in reaction. "His targeting of legal settlements, especially where EPA has no defense to breaking the law, will just allow violations to persist, along with harms to Americans."

Keep reading... Show less
Oil on the surface of the Gulf of Mexico after the 2010 Deepwater Horizon disaster. Julie Dermansky

Nearly 400,000 Gallons of Oil Spews Into Gulf of Mexico, Could Be Largest Spill Since Deepwater Horizon

Last week, a pipe owned by offshore oil and gas operator LLOG Exploration Company, LLC spilled up to 393,000 gallons of oil into the Gulf of Mexico, reminding many observers of the Deepwater Horizon explosion seven years ago that spewed approximately 210 million gallons of crude into familiar territory.

Now, a report from Bloomberg suggests that the LLOG spill could be the largest in the U.S. since the 2010 BP blowout, according to data from the U.S. Bureau of Safety and Environmental Enforcement (BSEE).

Keep reading... Show less
Shutterstock

Big Food Is Worried About Millennials Avoiding Animal Products

By Nathan Runkle

Hundreds of leaders from fast-food chains, marketing agencies and poultry production companies recently gathered in North Carolina for the 2017 Chicken Marketing Summit to play golf and figure out how to make you eat more animals.

One session focused on marketing chicken to millennials. Richard Kottmeyer, a senior managing partner at Fork to Farm Advisory Services, explained to the crowd that millennials are "lost" and need to be "inspired and coached." His reasoning? Because there are now "58 ways to gender identify on Facebook." Also, because most millennial women take nude selfies, the chicken industry needs to be just as "naked" and transparent.

Keep reading... Show less
Sponsored

Strange Days: Ex-Hurricane Ophelia Batters Ireland Under Orange Skies

By Dr. Jeff Masters and Bob Henson

Ex-Hurricane Ophelia hit Ireland hard with full hurricane-like fury on Monday, bringing powerful winds that caused widespread damage and power outages. At least two deaths have been reported from trees falling on cars, and The Irish Times said at least 360,000 ESB Networks customers lost power in Ireland because of the storm.

Keep reading... Show less
GMO
PBouman / Shutterstock

EPA Limits Use of Problematic Herbicide Dicamba—But Is That Enough?

By Dan Nosowitz

Dicamba has been in use as a local pesticide for decades, but it's only recently that Monsanto has taken to using it in big, new ways. The past two years have seen the rollout of dicamba-resistant seed for soybean and cotton, as well as a new way to apply it: broad spraying.

But dicamba, it turns out, has a tendency to vaporize and drift with the wind, and it if lands on a farm that hasn't planted Monsanto's dicamba-resistant seed, the pesticide will stunt and kill crops in a very distinctive way, with a telltale cupping and curling of leaves, as seen above. Drift from dicamba has affected millions of acres of crops, prompting multiple states to issue temporary bans on the pesticide. Farmers have been taking sides, either pro-dicamba or anti, and at least one farmer has been killed in a dispute over its use.

Keep reading... Show less
Sponsored
Runoff from a farm field in Iowa during a rain storm. Lynn Betts / U.S. Department of Agriculture, Natural Resources Conservation Service

Drinking Water for Millions in Rural America Contaminated With Suspected Carcinogen

Drinking water supplies for millions of Americans in farm country are contaminated with a suspected cancer-causing chemical from fertilizer, according to a new report by the Environmental Working Group.

The contaminant is nitrate, which gets into drinking water sources when chemical fertilizer or manure runs off poorly protected farm fields. Nitrate contaminates drinking water for more than 15 million people in 49 states, but the highest levels are found in small towns surrounded by row-crop agriculture. Major farm states where the most people are at risk include California, Iowa, Illinois, Wisconsin and Kansas.

Keep reading... Show less
www.youtube.com

Trump's Approval Rating on Hurricane Response Sinks 20 Points After Puerto Rico

President Trump's approval rating for overseeing the federal government's response to hurricanes fell by 20 points after Hurricane Maria devastated Puerto Rico, a CNN poll conducted by SSRS revealed.

Trump's approval rating for responding to hurricanes Harvey and Irma stood at 64 percent in mid-September. Just a month later, the rating dropped to 44 percent.

Keep reading... Show less
Sponsored

mail-copy

Get EcoWatch in your inbox