Published: November 02, 2009
Real Cost of Nuclear Power Disguised By Subsidies
By Gerry Wolff
If just one of the subsidies for nuclear power were to be withdrawn, the price of electricity from new nuclear power stations would rise to about 41 US cents per kWh, a level that would make it deeply unattractive to investors.
This is one of the conclusions of a new report from the Energy Fair group that identifies a range of subsidies enjoyed by the nuclear industry. "Most of these subsidies are hidden from view and are not well known" said Dr David Lowry, a member of the group.
"At present, the nuclear industry is excused from paying the full cost of insuring against a Chernobyl-style accident or worse." he said. "If they had to pay the full costs, nuclear power would not be commercially viable. Another subsidy for the industry is the way that national governments always have to pick up the tab when things go wrong. At commercial rates, that kind of underwriting is worth a lot of money."
The Energy Fair group believes that these and other subsidies for the nuclear industry create unfair competition for renewable sources of power and energy conservation measures. The group has received legal advice that the subsidies for nuclear power may well be illegal under EU competition laws.
"In terms of the fight against climate change, nuclear power is a mis-allocation of resources. It diverts funds away from where it would be better spent - on renewables and conservation of energy." said Dr Lowry. "Nuclear power is one of the expensive ways of generating electricity and there are more than enough alternatives that are cheaper, quicker to build, and without the many headaches of nuclear power. Several reports now show how to decarbonise the world's economies without using nuclear power."
NOTES
1 The report, "Nuclear Subsidies" may be downloaded via a link from
www.nonukes.org.uk/home or directly via
www.mng.org.uk/nsubsidies.pdf (PDF, 167 KB).
2 More information about the Energy Fair group and what it is aiming to do may be found on its website at www.nonukes.org.uk.
3 Why nuclear power is a mis-allocation of resources in the fight against climate change is summarised, with links to other sources, on www.nonukes.org.uk/nuclear-power-and-climate-change.
4 Reports about how to decarbonise the world's economies without nuclear power are listed, with notes and download links, on www.mng.org.uk/scenarios.
5 Contact:
* Dr David Lowry, +44 (0) 208 393 4679, .
* Dr Gerry Wolff, +44 (0) 1248 712962
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