Nuclear option is “too expensive” for funders « Mining Blog

Nuclear option is “too expensive” for funders

2. August 2011,

Nomura Securities analyst Kyoichiro Yokoyama last week released a detailed assessment of competing clean baseload technologies, in which he concluded that the cost of nuclear was considerably higher than that of even coal with carbon carbon and storage (CCS).

According to Giles Parkinson in an article published by today’s Australia-based Climate Spectator, Yokoyama noted that low costs had been a key selling point for nuclear power, underpinned by an analysis from the IEA and the OECD’s Nuclear Energy Agency in 2010 that suggested the levelised cost of energy (LCOE) for coal-fired plants with CCS comes out 25-40 per cent higher than that for nuclear plants, with or without a carbon price.

But Yokoyama said that, since the Fukushima Daiichi incident, an increasing number of people have been questioning the real cost of nuclear power generation:

“Some observers have noted that the cost of the various subsidies paid when nuclear plants are constructed is not factored in and it has also been pointed out that the estimation of costs associated with spent fuel has tended to be overly optimistic.”

Citigroup analysts also pointed out in a 2009 analysis on the economics of the nuclear industry that: “There hasn’t been a[nuclear] plant in the world built without the relevant government assuming much of the construction, operating and financing risk. There is not a single insurer, banker or construction company in the world that is willing to assume that risk.”

Source: “Nuclear: too hot to handle” by Giles Parkinson, Climate Spectator,
2 August 2011

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