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US Invests $6 Billion to Save 'Financially Distressed' Nuclear Reactors (apnews.com) 188

The U.S. government "is launching a $6 billion effort to rescue nuclear power plants at risk of closing," reports the Associated Press, "citing the need to continue nuclear energy as a carbon-free source of power that helps to combat climate change." A certification and bidding process opened Tuesday for a civil nuclear credit program that is intended to bail out financially distressed owners or operators of nuclear power reactors, the U.S. Department of Energy told The Associated Press exclusively, shortly before the official announcement. It's the largest federal investment in saving financially distressed nuclear reactors... "U.S. nuclear power plants contribute more than half of our carbon-free electricity, and President Biden is committed to keeping these plants active to reach our clean energy goals," Energy Secretary Jennifer Granholm said in a statement. "We're using every tool available to get this country powered by clean energy by 2035, and that includes prioritizing our existing nuclear fleet to allow for continued emissions-free electricity generation and economic stability for the communities leading this important work...."

A dozen U.S. commercial nuclear power reactors have closed in the past decade before their licenses expired, largely due to competition from cheaper natural gas, massive operating losses due to low electricity prices and escalating costs, or the cost of major repairs. This has led to a rise in emissions in those regions, poorer air quality and the loss of thousands of high-paying jobs, dealing an economic blow to local communities, according to the Department of Energy. A quarter or more of the fleet is at risk, the Department of Energy added. The owners of seven currently operating reactors have already announced plans to retire them through 2025.... Twenty more reactors faced closure in the last decade before states stepped in to save them, according to the Nuclear Energy Institute , the industry's trade association.... Low electricity prices are the main cause of this trend, though federal and state policies to boost wind and solar have contributed as well, the NEI added.

There are 55 commercial nuclear power plants with 93 nuclear reactors in 28 U.S. states. Nuclear power already provides about 20% of electricity in the U.S., or about half the nation's carbon-free energy. If reactors do close before their licenses expire, fossil fuel plants will likely fill the void and emissions will increase, which would be a substantial setback, said Andrew Griffith, acting assistant secretary for nuclear energy at DOE. While natural gas may be cheaper, nuclear power hasn't been given credit for its carbon-free contribution to the grid and that has caused nuclear plants to struggle financially, Griffith added....

David Schlissel, at the Ohio-based Institute for Energy Economics and Financial Analysis, said he wishes the federal government, before it allocated the $6 billion, had analyzed whether that money might have been better spent on ramping up renewables, battery storage and energy efficiency projects, which can be done quickly and cheaply to displace fossil fuels.

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US Invests $6 Billion to Save 'Financially Distressed' Nuclear Reactors

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  • Just buy them (Score:5, Insightful)

    by jacks smirking reven ( 909048 ) on Saturday April 23, 2022 @10:52AM (#62471766)

    Instead of what essentially seems like a bailout. Nuclear power makes logistical and environmental sense, it doesn not totally make economic sense. I happen to think the advantages of the first two outweight the 3rd but that takes it out of the realm of "free markets" as it can't really compete on the costs, especially on the short term with massive upfront investments.

    If we want nuclear power the best option is to nationalize it and/or form a non-profit subsidiary to manage it like the Post Office or the Tenessee Valley Authority. This entity can keep the plants runnig as long as feasible and also have the freedom to replace these units with newer models.

    • There's nothing wrong with "bailouts." Economic Puritanism is boring. This being said, yes - nationalization should be an option.
      • No, not inherently but as I understand it a bailout really is supposed to be a temporary measure to prop up a company or a sector through a particularly unprecented circumstance. With the banks and auto companies also there was good chance that these sectors would recover enough to return a good chunk of the money (which they did).

        In this case I don't necessarily see a clear case that these plants will suddenly turn profitiable to that point, nor is the changing energy market combined with aging infrastruc

        • by Latent Heat ( 558884 ) on Saturday April 23, 2022 @11:28AM (#62471864)

          This is the old, old joke of the guy on trial for killing his parents asking for sympathy because he is an orphan now.

          If you are going to disadvantage everything but the renewables by ordering "power from wind and solar gets sold first", you are putting nuclear out of business. That might be OK if the goal is to put nuclear out of business on account of all of the problems with nuclear, but don't come crying that the backup sources are fossil-fuel powered.

          And I don't want to hear "the 6 billion dollars to keep nuclear plants would be better spent on renewables and energy storage." This is how we got to the point of spending 6 billion dollars to keep nuclear plants going.

          The goal is New Zero, these new subsidies for nuclear is foreseeable requirement.

          • Actually, battery storage at nuclear plants would likely improve their viability. The battery energy costs $70/MWh more, but is likely worth a $200/MWh premium. It is a clear-cut example of pushing out gas leakers and grid services that functions year round.

          • And I don't want to hear "the 6 billion dollars to keep nuclear plants would be better spent on renewables and energy storage." This is how we got to the point of spending 6 billion dollars to keep nuclear plants going.

            The goal is New Zero, these new subsidies for nuclear is foreseeable requirement.

            /quote Can you show us the amazing profits that nuclear made before those dam windmills and solar panels came along? Your statement that those renewable sources killed nuclear to the tune of needing 6 billion dollars is interesting - I'm 100 percent certain you can provide the dates and citations.

        • No, not inherently but as I understand it a bailout really is supposed to be a temporary measure to prop up a company or a sector through a particularly unprecented circumstance. With the banks and auto companies also there was good chance that these sectors would recover enough to return a good chunk of the money (which they did).

          In this case I don't necessarily see a clear case that these plants will suddenly turn profitiable to that point, nor is the changing energy market combined with aging infrastructure an unprecedented circumstance.

          If nuclear could ever turn a profit, it would have by now.

      • Re: (Score:3, Interesting)

        by hey! ( 33014 )

        There's plenty wrong with bailouts; that doesn't mean they aren't sometimes the least-bad option.

        Of course some things that are perceived as "bailouts" aren't really bailouts. The GM "bailout" was really a government coordinated liquidation of the company and a sale of its assets, including the GM name, to a new company. The original company was renamed "Motors Liquidation Company", and continued in existence for two more years, during which it distributed proceeds of the sale to creditors. That at leas

    • by VeryFluffyBunny ( 5037285 ) on Saturday April 23, 2022 @11:01AM (#62471800)
      Nationalise? Non-profit? You're socialists & thought criminals. I'll make sure you die for my freedumbs!
    • Re:Just buy them (Score:5, Insightful)

      by bill_mcgonigle ( 4333 ) * on Saturday April 23, 2022 @11:03AM (#62471808) Homepage Journal

      Nuclear is like medicine - we have the worst of all worlds with poor infrastructure and sky-high costs while a few people got rich.

      A plant near here got zero maintenance while all the revenues got siphoned off into a multinational conglomerate until the regulators ordered it shut down.

      So the $6B is most likely to go to corporate welfare. Which is a crime that won't be prosecuted.

      • more and more is "what is a crime?"

        Steal a bunch of diapers and medicine? We nail you to the wall. Folks say "they're gonna sell those diapers and medicines!" to which I say "A seller requires a buyer, meaning there's still people who buy stolen diapers because they can't afford the store".

        Meanwhile steal trillions while jacking up rent and making homeownership impossible by buying up all the houses with those trillions? A-Ok.

        Pirates and Emperors [wikipedia.org] man, Pirates and Emperors...
        • there's still people who buy stolen diapers because they can't afford the store".

          Solution: cheaper contraceptives.

    • by AmiMoJo ( 196126 )

      You can't just replace a nuclear reactor with a newer one. The plant is custom built for the type of reactor previously installed. Besides the reactor, there is all the cooling and safety equipment, plus the steam loop that runs the generator.

      Removing the old reactor is far from trivial either. Parts of it are high level nuclear waste that requires extremely careful handling. Can't just lift it on a crane, because if you drop it...

      Generally it's easier to build a new plant, perhaps next to an existing one s

      • I did not mean "rebuild a reactor in an existing plant" but the option to rebuild an entirely new plant in the same region or even same location to continue the role that plant plays in an area. Nationlization can definitely lubricate the gears in terms of eminent domain, environmental review, waste management and design around regulation. Definitely not everything but better than the private market I would imagine.

        I think at the moment the private energy market has handled wind and solar pretty well so

        • by AmiMoJo ( 196126 )

          The French tried what you suggested. EDF is state owned and builds and operates their nuclear plants. It hasn't worked out very well. The power is extremely expensive (the price consumers pay is heavily subsidised and no little relation to the actual cost) and EDF is perpetually in need of bail-outs as it tries to build more around Europe.

          EDF's current estimate is 20 years to build a new power plant, which seems about right given how their current projects are going. They were originally supposed to take 10

          • Re:Just buy them (Score:4, Interesting)

            by jacks smirking reven ( 909048 ) on Saturday April 23, 2022 @11:42AM (#62471880)

            I am not syaing EDF does not have problems but in many perspectives EDF has absolutely been a success and they seem to think so as well as they are planning to build 14 more plants in the next 30 years.

            From a pure cost perspective nuclear for France is not the cheapest but not the most expensive either, they have a very secure domestic production of electricity and are not reliant on oil imports for key energy needs as well as being ahead of the curve on emissions. There are a lot of intangibles they get along with stable and reliable power, it's a question of if those are worth the price which is likely always going to need some amount of subsidzation. The energy cost increases and rising infrastructure cost seem to follow the general trends of the market and it's not as though the free market system is building plants cheaper and faster either.

            I think the EDF model is closer to what nuclear power has to be to actually work if nuclear power is to be a key part of the energy mix. That's a different and more important qestion though and I will admit I like nuclear power but I have seen some arguments and scenarios of an all-renewable but low-nuclear energy market I could get on board with.

      • by doom ( 14564 )

        Building additional reactors at the same site is often a sensible even if re-using components usually isn't-- some of the over head is the security staff, the storage facilities and the licensing approval for the site.

      • Generally it's easier to build a new plant, perhaps next to an existing one so it can take advantage of existing infrastructure and stuff like environmental surveys that were done for the original. Any NIMBYs tend to have already lost their legal challenges or moved away by then too.

        There is serious ongoing work on converting coal plants to nuclear using modular designs that can be build in a factory and placed on site exploiting existing buildings, steam and power infrastructure.

        Not that it's worth building new reactors at all. The money is better spent on renewables.

        New reactors are essential for providing a "green" baseload. There are currently no viable alternative save untapped hydro and geo in most areas of the world that can do this without resorting to burning hydrocarbons.

        Material and environmental cost associated with over building of intermittent sources (wind,

        • by AmiMoJo ( 196126 )

          Base load is getting less and less relevant.

          https://energypost.eu/intervie... [energypost.eu]

          Nuclear is going to have a hard time in the market in the future. That's why EDF is demanding guaranteed prices for the energy - they know it's going to be uncompetitive and largely unneeded.

          At the moment is possible to choose an energy provider that doesn't use nuclear power, but in future that option will have to go away so that consumers are forced to pay for it.

          • Base load is getting less and less relevant.

            Why is it less relevant?

            Did you read the article before citing it? It's gibberish.

            "The idea of baseload power is already outdated. I think you should look at this the other way around. From a consumerâ(TM)s point of view, baseload is what I am producing myself. The solar on my rooftop, my heat pump - thatâ(TM)s the baseload. Those are the electrons that are free at the margin."

            My personal favorite:

            "How much of a problem is the integration of intermittent renewables in Holliday's view? "It's simpl

    • Re: Just buy them (Score:4, Interesting)

      by Miamicanes ( 730264 ) on Saturday April 23, 2022 @11:45AM (#62471886)

      Start with Florida, and build two new plants... one to replace Crystal River (which shut down after a botched repair job damaged the containment dome, but the storage site, transformer yard, and transmission lines are still there ready for a new plant at the same site), and one near Clewiston (planned years ago, but never built).

      It's good that FPL is adding 2 new reactors to Turkey Point (Miami), but the new capacity is BARELY enough to satisfy Miami's own base load demands... and a major hurricane anywhere south of the Broward-Palm Beach county line will sever TP's grid connection to the rest of the state for weeks, causing rolling blackouts a hundred miles or more away from the actual hurricane zone (because FPL's transmission lines north of I-4 can't deliver 100% of the power needed to fully satisfy southwest Florida's base load, let alone peak summer afternoon demands, now that Crystal River is gone).

      Southwest Jacksonville (near Palatka) would be another good spot for a reactor.

      In theory, Disney/RCID could have built a reactor local NIMBYs couldn't have stopped (and in fact, it was actually Disney's strongest SELLING POINT for the creation of RCID), but the surrounding land is now too expensive to set aside the kind of buffer zone a new reactor would require. Nearby Windmere has vacant lots starting at tens of millions of dollars an acre... there's no way Disney would ever make enough money from power-generation to offset the loss of future real estate development on that land.

      Then again... if it could move quickly enough, Disney COULD use it as an ultimate 'Fuck You' against Florida for terminating RCID. As I understand it, the day RCID ends, Orange County forcibly inherits RCID's debt. If that includes debt incurred between now and 2023, Disney COULD file for nuclear plant approval, then sell land for it to RCID at the full market value of the land if developed for luxury housing, instantly sealing its profit & saddling Orange County with a HUNDRED billion dollars in municipal debt, not just "a few" billion.

      It would be the ultimate "poison pill" to force Florida's legislature to nullify the law it just passed. OC would be bankrupted by that kind of bond obligation. Meanwhile, if RCID were reinstated, it would just sell the land back to Disney in exchange for cancelling the bonds Disney would have sold to itself in the first place.

      The best part about such a plot is, Disney wouldn't even HAVE to exaggerate the land's market value. It IS valuable, and by taking the land (via RCID) from itself (Disney) via eminent domain for a recognized public purpose (to build a reactor it's guaranteed by law to be allowed to build), it could inflate the price by 25% just because it IS eminent domain.

      God, that WOULD be a plot worthy of grabbing a bowl of popcorn & watching Florida's legislature & DeSantis completely freak out over.

      Don't get me wrong... IMHO, RCID *should* have built a nuclear power plant there 40 years ago as promised... but now, the land is too expensive, and there are more economically-sensible places 20-50 miles away. On one hand, I'd hate to see Disney using the uneducated public's fear of "Nucular" Power as a weapon... but it would give Disney one HELL of a "poison pill" bargaining chip.

      • Florida may be mostly underwater within those plants' lifetimes. Florida has potential for a massive amount of wind power. Why build more nuclear?

        • Re: (Score:3, Insightful)

          by MacMann ( 7518492 )

          Why build more nuclear?

          Because of land area requirements.

          Danger! Log-log scale graph ahead! http://www.inference.org.uk/su... [inference.org.uk]
          On that graph we see solar power gets best case 20 watts power produced per square meter of land area. Not on the graph is that nuclear power get 1000 watts per square meter, which is shown here: http://www.withouthotair.com/c... [withouthotair.com]
          Wind power produces about 2.5 watts per square meter. Land use requirements alone dictate we need nuclear power.

          Then comes safety.

          Here's one graph showing how safe nuclear powe

    • by doom ( 14564 )

      The way I would put it is that we don't have anything like a sane pricing system on energy-- the actual costs of carbon emissions are not captured in the price of the energy, so you can't just "let the market decide".

      Team anti-nuclear right now likes the line "it's just economics!", having suddenly discovered the laissez-faire religion (except when talking about subsidies for solar and wind or electric cars).

    • it doesn not totally make economic sense

      It would if we externalise costs appropriately. Every cent of keeping a nuclear power plant open should come directly from the profits of a coal / gas power plant. After all that's how you enact government policy.

      But back in reality the coal and gas industry is too large (read: creates lots of jobs) to be taxed for its externalities, so it falls on the taxpayor to cover the cost of nuclear while the world continues to flush itself down the carbon toilet.

    • There is no free market for electricity.

      The cheapest option, coal is banned. Solar, wind, and thermal are heavily subsidized. And hyrdo is heavily restricted for environmental reasons.

      Really the only two options that actually compete are natural gas and nuclear, with natural gas being the clearly cheaper option. Everything else is decided by government intervention.

    • Instead of what essentially seems like a bailout. Nuclear power makes logistical and environmental sense, it doesn not totally make economic sense. I happen to think the advantages of the first two outweight the 3rd but that takes it out of the realm of "free markets" as it can't really compete on the costs, especially on the short term with massive upfront investments.

      If we want nuclear power the best option is to nationalize it and/or form a non-profit subsidiary to manage it like the Post Office or the Tenessee Valley Authority. This entity can keep the plants runnig as long as feasible and also have the freedom to replace these units with newer models.

      So we are now supposed to nationalize it because it lives up to none of it's grand promises. The idea of it being a non-profit is funny, because it appears to be a rather big black hole.

      It just makes no business sense. If we were to settle on a storage medium for renewables, and launch it, there's money to be made producing the new stuff, not throw it into a money pit which will only continue to grow.

      • My entire argument is based around the assumption that nuclear power doesn't make economic sense from a private ownership point of view. If all of the logistical (cheap to generate, reliable and stable power) and environmental (low emissions per MW generated) benefits are something we find worth it still then the best way forward is as a public ally owned enterprise in my opinion.

        On a scale of decades nuclear actually can make a lot of sense but the high up front cost and regulations likely make it too lar

    • considering that these plants are GIVEN to Holtec Decommissioning International, it makes sense to actually pay a company to take over these and manage them correctly.
  • by b0s0z0ku ( 752509 ) on Saturday April 23, 2022 @10:53AM (#62471770)
    Re-open Indian Point OH! let the NIMBYs scream!
    • Re: (Score:3, Interesting)

      by Travelsonic ( 870859 )
      As someone who also lives in the same county as Indian Point, I agree. Reopen it, put competent people in charge, let the NIMBYs melt down.
    • by fermion ( 181285 )
      Ohio is the classic example of technologically deficient and retrograde state. Like many states, gas fired plants provide about half the energy, but unlike more energy innovative states, it relies more on coal and has not taken any significant steps toward wind or solar. Compared this to Texas, a technologically competent state, wher gas fired plants are half the power, but wind is 20% and nuclear is only 10%. To be frank, people in states like Ohio are much more concerned with getting an opioid prescriptio
  • Some context (Score:5, Interesting)

    by stabiesoft ( 733417 ) on Saturday April 23, 2022 @10:59AM (#62471790) Homepage
    https://en.wikipedia.org/wiki/... [wikipedia.org] Everybody gets subsidies. 6B is actually pretty small in the grand scheme.
  • It's only fair ... (Score:4, Insightful)

    by PPH ( 736903 ) on Saturday April 23, 2022 @11:01AM (#62471794)

    ... to subsidize all carbon free sources at the same level per kWh produced.

    • by AmiMoJo ( 196126 )

      How do you calculate nuclear subsidies though? The free insurance they get is worth $infinity, it's literally unlimited and provided at zero cost. What is infinity divided by zero?

      • by PPH ( 736903 )

        The free insurance they get is worth $infinity

        Not really. You add up the mitigation costs plus payouts. Even if these were paid by the government. Divide that figure by the energy produced or the total installed nuclear capacity. That's the total insurance cost. Even if the operating companies don't pay it.

  • Again.

    They got subsidies and help building those plants. They profited for years from the relatively cheap energy that nuclear can provide. Now, we need to pay the energy companies more to - what? Keep the price down? Keep making profit?

    If this is part of the nuclear energy equation, I don't see how nuclear energy can ever be cost efficient.

  • > While natural gas may be cheaper, nuclear power hasn't been given credit for its carbon-free contribution to the grid and that has caused nuclear plants to struggle financially, Griffith added

    A great way to address this would be to put a price on carbon emissions as proposed in the Economists' Statement (https://econstatement.org/) or the Energy Innovation and Carbon Dividends Act (https://energyinnovationact.org/). Nuclear, renewables, and fossil fuels could then compete on a more level playing field

  • by spaceman375 ( 780812 ) on Saturday April 23, 2022 @04:04PM (#62472316)
    I'm all for nuclear power. As long as it stays right where it already exists naturally: 93 million miles away from here.
  • by cascadingstylesheet ( 140919 ) on Saturday April 23, 2022 @05:19PM (#62472446) Journal
    We're going to need it. And you pretended we didn't need fossil. And it got embarrassing buying fossil from Russia.

Get hold of portable property. -- Charles Dickens, "Great Expectations"

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