Resurgence was brewing for nuclear power, but the Fukushima disaster may have nipped it in the bud. However, the darker side of nuclear energy has been exposed by Japan’s struggle to contain radiation from the reactor damaged by the earthquake and tsunami. Costly new security measures that may be required because of the Fukushima disaster could make the price of nuclear power prohibitive to investors as a primary energy source in the future.
Loan guarantees for nuclear power
In a 2010 Gallup poll, about 62 percent of responders said that using nuclear power as a clean, reliable power source was a good idea. The Obama administration announced plans to provide $54.2 billion in loan guarantees for the construction of nuclear power plants. But even prior to the Fukushima disaster, it was doubtful that new nuclear reactors would be under construction in the U.S. anytime soon, according to Mark Cooper of the Vermont Law School’s Institute for Energy and the Environment. Cooper said the U.S. nuclear industry was a bubble that was going to burst just like any. This was said in Ottawa, Canada, at a presentation at the House of Commons. Billions in loan guarantees were put out for nuclear energy by the Bush administration in 2001 which was when the bubble began. By 2008 it became evident that the nuclear industry couldn’t deliver on costs. Natural gas became a cheap choice while the recession started. The other clean energy possibilities ! helped bring it down also.
Energy from nuclear power not as cheap as it used to be
It might become more costly to build new reactors during the Fukushima disaster. In 1979, there was a Three Mile Island accident in Pennsylvania. After this, as Cooper's research shows, there was a 95 percent increase in construction costs. As a result, households paid 40 percent more for electricity. After the 1986 Chernobyl disaster in Ukraine, construction costs rose another 89 percent, and electricity costs were 42 percent higher. Construction costs for nuclear reactors skyrocketed because of design changes required to address safety concerns. The changes in the United States to address the safety after the Fukushima problem are being addressed currently. The Nuclear Regulatory Commission is together working on it already.
Risking it is asking too much of investors
Now the Fukushima incident has occurred, investors are worried about where they put their money. Instead of invest in nuclear power plants, they are more likely to put money into clean energy alternatives for instance solar, wind and natural gas. Utilities may also pass on assuming the risk of nuclear plants. Financially, nuclear energy is not any longer a cheap choice to other sources of energy. Before taking into account the cleanup costs of a nuclear accident, onshore wind farms, for example, are up to 35 percent cheaper than nuclear plants. The world can get electrical power from several option sources. The nuclear power costs to the economy are avoided with them. It’s more lucrative for investors to invest in clean energy alternatives.
Articles cited
Reuters
reuters.com/article/2011/03/25/idUS423443138820110325
Fast Company
fastcompany.com/1742619/what-are-the-economics-of-nuclear-power-after-fukishima
The National
thenational.ae/lifestyle/personal-finance/japans-nuclear-woes-add-pressure-to-invest-in-green-energy
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