Tag Archives: nuclear energy subsidies

Free Markets? No! Subsidies for Nuclear Industry

The U.S. Department of Energy (DOE) announced on Aug. 15, 2019 the launch of the National Reactor Innovation Center (NRIC). The new initiative will assist with the development of advanced nuclear energy technologies by harnessing the world-class capabilities of the DOE national laboratory system.  Authorized by the Nuclear Energy Innovation Capabilities Act, NRIC will provide private sector technology developers the necessary support to test and demonstrate their reactor concepts and assess their performance. This will help accelerate the licensing and commercialization of these new nuclear energy systems.

“NRIC will enable the demonstration and deployment of advanced reactors that will define the future of nuclear energy,” said U.S. Energy Secretary Rick Perry. “By bringing industry together with our national labs and university partners, we can enhance our energy independence and position the U.S. as a global leader in advanced nuclear innovation.”  NRIC will be led by Idaho National Laboratory and builds upon the successes of DOE’s Gateway for Accelerated Innovation in Nuclear (GAIN) initiative… 

The Nuclear Energy Innovation Capabilities Act was signed into law in 2018 by President Donald J. Trump and eliminates some of the financial and technological barriers standing in the way of nuclear innovation. It directs DOE to facilitate the siting of advanced reactor research demonstration facilities through partnerships between DOE and private industry. The House Energy and Water Development committee has allocated $5 million in the FY2020 budget for NRIC, which plans to demonstrate small modular reactor and micro-reactor concepts within the next five years.

Excerpts from DOE,  Energy Department Launches New Demonstration Center for Advanced Nuclear Technologies, Press Release, Aug. 15, 2019

Dismantling Nuclear Reactors at Fukushima

In the aftermath of the Fukushima nuclear disaster in 2011, Naraha decided to oppose nuclear energy and call for the closure of the Fukushima No. 2 nuclear power plant that it co-hosts on the coast of the prefecture.  Since the 1970s, the town has been home to the No. 2 plant, which first went into service in 1982.  For decades, Naraha has received central government grants and subsidies for hosting the No. 2 plant, as well as tax revenues from TEPCO and its affiliates operating in the town.The plant also employed 860 people, many of them from Naraha and its surrounding communities.

Naraha had a population of about 8,000 before the Great East Japan Earthquake and tsunami caused the triple meltdown at TEPCO’s Fukushima No. 1 nuclear plant in March 2011. The crippled plant is located within 20 kilometers from Nahara.  The quake and tsunami also created a scare at the No. 2 plant by leaving the facility with only a limited power supply from external sources and emergency diesel generators to cool the reactors. But the plant brought the situation under control.

After long remaining silent about the fate of the No. 2 plant, TEPCO decided to retire all of its four reactors, which were approaching their legal operating limit of 40 years. If the power company wanted to continue operations at the plant, it would have to spend hundreds of billions of yen on upgrades to meet the more stringent safety standards that were set after the accident at the No. 1 plant…

Although Naraha and Tomioka officials share concerns about their municipalities’ financial futures, they see a silver lining in the situation at the Fukushima No. 1 nuclear plant.  Both towns have served as front-line bases for workers involved in decommissioning of the stricken plant.  About 5,000 workers a day who are involved in the decommissioning effort provide steady business for convenience stores and other shops in the two towns. Business hotels, dorms and apartment buildings have been built in the towns and neighboring communities to accommodate the workers. Work to dismantle the No. 1 plant is expected to take decades to complete. Local officials said the closure of the No. 2 plant could bring about a similar economic boon. “Decommissioning can become a major industry,” Naraha Mayor Matsumoto said.

Excerpts from  Nuclear plant closure brings hope, despair to Fukushima town
THE ASAHI SHIMBUN, October 18, 2018

US Subsidies for Nuclear Energy

U.S. Secretary of Energy Ernest Moniz today announced at the National Press Club that he will be traveling to Waynesboro, Georgia tomorrow, February 20, 2014 to mark the issuance of approximately $6.5 billion in loan guarantees for the construction of two new nuclear reactors at the Alvin W. Vogtle Electric Generating Plant. The project represents the first new nuclear facilities in the U.S. to begin construction and receive NRC license in nearly three decades. In addition, the deployment of two new 1,100 megawatt Westinghouse AP1000 nuclear reactors is a first-mover for a new generation of advanced nuclear reactors.

“The construction of new nuclear power facilities like this one – which will provide carbon-free electricity to well over a million American energy consumers – is not only a major milestone in the Administration’s commitment to jumpstart the U.S. nuclear power industry, it is also an important part of our all-of-the-above approach to American energy as we move toward a low-carbon energy future,” said Secretary Moniz. “The innovative technology used in this project represents a new generation of nuclear power with advanced safety features and demonstrates renewed leadership from the U.S. nuclear energy industry.”

The two new 1,100 megawatt Westinghouse AP1000 nuclear reactors at the Alvin W. Vogtle Electric Generating Plant will supplement the two existing reactor units at the facility. According to industry projections, the project will create approximately 3,500 onsite construction jobs and approximately 800 permanent jobs once the units begin operation. When the new nuclear reactors come on line, they will provide enough reliable electricity to power nearly 1.5 million American homes.  Project partners include Georgia Power Company (GPC), Oglethorpe Power Corporation (OPC), the Municipal Electric Authority of Georgia (MEAG), and the City of Dalton, Georgia (Dalton)….

The Energy Policy Act of 2005 authorized the Department to issue loan guarantees for projects that avoid, reduce or sequester greenhouse gases and employ new or significantly-improved technologies as compared to technologies in service in the United States at the time the guarantee is issued.  The nuclear facility is eligible for loan guarantees since it is expected to avoid nearly 10 million metric tons of carbon dioxide emissions annually, which is the equivalent of removing more than two million vehicles from the roads. In addition, the Westinghouse AP1000 reactor has incorporated numerous innovations resulting in significant operational and safety improvements.

Currently, the Department’s Loan Programs Office (LPO) supports a large, diverse portfolio of more than $30 billion in loans, loan guarantees, and commitments, supporting more than 30 closed and committed projects. The projects that LPO has supported include one of the world’s largest wind farms; several of the world’s largest solar generation and thermal energy storage systems; and more than a dozen new or retooled auto manufacturing plants across the country.

Sec. Moniz to Georgia, Energy Department Scheduled to Close on Loan Guarantees to Construct New Nuclear Power Plant Reactors, Press Release, US Energy Department, Feb. 19, 2014.