Real price of nuclear power apparent at Fukushima

Before the Fukushima disaster, nuclear power appeared on the brink of a comeback. But as a direct consequence of the Japan earthquake and tsunami, nuclear reactors worldwide have been turned off and construction of nuclear plants has been put on hold. Measures to protect nuclear reactors from earthquakes in the future might be so expensive that investors will think twice before believing that an investment in nuclear energy can be profitable. Post resource – Fukushima disaster lays bare the true cost of nuclear power by MoneyBlogNewz.

What it will cost with 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. To be able to get nuclear power plants built, the Obama administration is preparing on providing $54.2 billion in loan guarantees for construction projects. The Vermont Law School's Institute for Energy and the Environment's Mark Cooper explained that building nuclear reactors in the United States was unlikely prior to the Fukushima disaster anyway. In a presentation prior to the House of Commons in Ottawa, Canada, Cooper said the United States nuclear industry was a bubble about to burst. 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 the nuclear industry could not deliver on costs. It ended due to the recession, many other clean energy options and cheap natural gas.

Nuclear power starting to cost more

In the wake of the Fukushima disaster, building new reactors could become even more cost prohibitive. After the 1979 Three Mile Island accident in Pennsylvania, construction costs for nuclear reactors rose 95 percent, according to Cooper’s research. As a result, households paid 40 percent more for electricity. Construction costs went up 89 percent causing electricity to rise 42 percent in 1986 after the Ukraine Chernobyl disaster. The price of construction goes up quite a bit after accidents occur for nuclear reactors. This is as the safety needs to be addressed causing a design change. The Nuclear Regulatory Commission has already assembled a task force to investigate the design changes required for planned nuclear plants in the United States, based on lessons learned from Fukushima.

Too much of a risk

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. The nuclear plant risk is one utility might pass on also. Sometimes you don’t want to pay much for energy. If this is the only consideration, nuclear energy makes the most sense. 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 nuclear power plant financial and ecological costs are avoided with alternative sources can effortlessly help strength the world. For savvy investors, clean energy alternatives promise more profitable opportunities.

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