Wednesday, 2 March 2011

New Report - Nuclear Power: Still Not Viable Without Subsidies‏



Brilliant, the union of concerned Scientists has just published a report detailing why Nuclear power is still not fiancially viable without considerable subsidies from Governments ergo taxpayers and utilitiy payers. The following is a statement from Doug Koplow the reports author:

"It is notable that conspicuously absent from industry press releases and briefing memos touting nuclear power's potential as a solution to global warming is any mention of the industry's long and expensive history of taxpayer subsidies and excessive charges to utility ratepayers. These subsidies not only enabled the nation's existing reactors to be built in the first place, but have also supported their operation for decades.


This analysis catalogs in one place and for the first time the full range of subsidies that benefit the nuclear power sector. The findings are striking: since its inception more than 50 years ago, the nuclear power industry has benefited-and continues to benefit-from a vast array of preferential government subsidies. Indeed, as the report shows, subsidies to the nuclear fuel cycle have often exceeded the value of the power produced. Subsidies to new reactors are on a similar path.

The most important subsidies to the industry do not involve cash payments. Rather, they shift construction-cost and operating risks from investors to taxpayers and ratepayers, removing from investors an array of risks ranging from cost overruns and defaults to accidents and nuclear waste management. This approach, which has remained remarkably consistent throughout the industry's history, distorts market choices that would otherwise favor less risky investments. Although it may not involve direct cash payments, such favored treatment is nevertheless a subsidy, with a profound effect on the bottom line for the industry and taxpayers alike."

The title links to the executive summary but the full report can be found here: Nuclear Power: Still Not Viable Without Subsidies


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