The Real Problem with Nuclear Energy

Yesterday's Supreme Court decision which struck down the existing laws limiting contributions from corporations is bound to have some immediate impact. Look for lots of campaign commercials from the Nuclear lobby promoting your friendly neighborhood nuclear power plant (along with continuing absurd commercials about the mythical "clean coal"). The doors are now wide open for big corporate energy interests to campaign and we doubt that they will waste any time beating down our virtual doors. However, it is my fervent hope that the public will think twice about buying the pitch for more nuclear plants. Increasing our use of nuclear energy would be very bad policy, though not necessarily for the reason most citizens think.

When most people think about nuclear energy the first thoughts that come to mind probably have something to do with Chernobyl, Three Mile Island, or other glow-in-the-dark scenarios. Nuclear waste also frequently rears its head as a concern given that nuclear waste is dangerous for thousands of years. However, it may be that the biggest thing we should be worrying about (though it doesn't make for a good movie of the week) is the whooshing sound of dollars leaving our wallet, because when looked at carefully it quickly becomes clear that nuclear power plants are just too darn expensive.

An excellent explanation of this provided yesterday by Elliott Negin, the media director for the Union of Concerned Scientists in Washington, D.C. in an article that appeared recently on the GreenTechMedia web site. Negrin points out that there have been no new nuclear plants built by utility companies since 1973. The energy companies don't want them because they know how expensive they are. A bit of history is in order. As Negin points out "In the 1960s and 1970s, the industry proposed to build some 200 plants, but as construction costs escalated, only about half were finished. Taxpayers and ratepayers were left footing the bill -- about $300 billion in today's dollars -- for abandoned plants, cost overruns for completed plants, and stranded investments that were higher than the wholesale market price for power. "

The Nuclear lobby has asked the Nuclear Regulatory Commission to approve the building of 26 new nuclear power plants. The cost of these plants would be extraordinary, probably in the range of $7-9 billion dollars apiece. What makes this a bigger concern is that the nuclear power companies are asking for taxpayers to finance these risky investments despite the fact that prior investments led to hundreds of billions of dollars of loss. The Nuclear Energy Institute, which is the lobbying arm for the nuclear industry has petitioned the commission to provide over $100 billion in loan guarantees so they can build the nuclear plants. Folks, this is not chump change. We are talking Iraq war kind of dollars here. Moreover, we are looking at loan guarantees that the nuclear companies could very easily default on. The GAO, the Government Accountability Office estimates that the risk of the nuclear companies defaulting on these loans is at least 50%. I can't imagine any business guaranteeing loans with a 10% risk, much less 50% risk. This is just bad business!

The argument put forward by the nuclear industry is, of course, that the demand for electricity is growing and nuclear plants do not contribute to global warming. Both arguments are true, but what they are not telling us is that there are far better alternatives for getting the renewable energy we need, lots of alternatives.

Let's start with solar energy, for example. As of January 2010 solar has rapidly emerged as an increasingly competitive way of generating commercial electricity. The current cost of a kilowatt-hour of solar energy is hovering around 19 cents per kilowatt hour which is still a bit above nuclear energy costs. However, the cost of photovoltaic panels has dropped by half in 2009 while at the same time the efficiency of the panels went up. Once commercial electric plants begin incorporating these cheaper panels most experts believe PV electricity costs will drop to around 9-11 cents per kilowatt hour which would make them very competitive if not cheaper than electricity from nuclear power plants.

Solar energy can also be generated using solar heat, particularly if the plant is built somewhere in the southwest US where temperatures are high. Solar thermal plants have become far more efficient as the technology becomes refined. There are many solar thermal plants in development that rival nuclear plants in scale. Many of these plants will also address one limitation of solar energy which is its intermittent nature. Recent breakthroughs in the storage of solar thermal energy using molten salt now allow the solar thermal energy to be stored overnight so that the plants can generate energy 24 hours per. This will make them even more viable alternatives to nuclear power plants.

Wind energy is yet another alternative to nuclear power. Large utility scale wind turbines are being manufactured in increasing numbers and as a result are becoming bigger and more cost effective. Over the last 20 years, the cost of electricity from utility-scale wind systems has dropped by more than 80%. In the early 1980s, when the first utility-scale turbines were installed, wind-generated electricity cost as much as 30 cents per kilowatt-hour. Modern wind farms are now producing energy at closer to 4-6cents per kilowatt-hour when you account for the Production Tax Credit. In turn most nuclear power plants are producing energy at somewhere between 11-14 cents per kilowatt-hour when you account for the cost of storing depleted nuclear fuel. Wind farms produce electricity at far less cost and do this without generating any carbon emissions, no radiation risks and without the long-term problem of disposing of nuclear waste. When you look at the whole picture wind energy becomes a no brainer!

Despite these economic hard times are choices for generating cleaner and less expensive energy have never been better. That makes it all the more important that we choose wisely. Give it some thought!