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Editorial / Commentary / Opinion
NYT: US: A reasonable
bet on nuclear power
President Obama’s decision to commit $8.3 billion in loan guarantees to help build two nuclear reactors in Georgia and restart the American nuclear power industry makes good sense.
We know that many environmentalists want Mr. Obama to put all of his chips on energy efficiency and renewable fuels, like wind and solar power. But nuclear power, which generates far fewer greenhouse gases than ordinary fossil fuels, should be part of the energy mix as this country and others move toward a less-carbon-intensive world.
There are just more than 100 working nuclear plants in this country, supplying about one-fifth of the nation’s electricity. But a new plant has not been built here since the 1979 accident at Three Mile Island.
While the United States has sat on the sidelines, other governments are enthusiastically embracing nuclear power as a way to lessen their greenhouse emissions and their dependence on imported oil. Several also rightly see nuclear technology as a strong export business.
The nuclear industry’s safety record has improved since Three Mile Island. The next generation of plants — with advanced designs, new construction techniques and strong oversight — should be even safer.
The biggest remaining obstacle has been financing. Nuclear reactors are very expensive. The tab for a new reactor can run as high as $7 billion to $8 billion, and overruns can add more. There is a long lead time before a plant starts selling power and paying returns. For these and other reasons, banks have not been willing to lend.
It would be nice to think that the private sector could address this problem on its own. But the private sector does not underwrite the nuclear industry in other countries — governments do.
And nothing is going to happen here without government loan guarantees.
There are certainly financial risks. If the reactors are completed and operate profitably, the borrowers will repay the banks, in addition to an upfront fee to the federal government in exchange for the loan. If the project fails, the government — meaning the taxpayers — could be left holding a rather large bag.
From where we sit, the risks are worth taking to get the United States back into the game, for the sake of the climate, this country’s energy future and the jobs a vibrant nuclear technology industry could create.
NYT ( The New York Times ) is leading newspaper in the U.S. a well read internationally. Petroleumworld does not necessarily share these views.
Editor's Note: This commentary was originally published by NYT on 02/18/2010. Petroleumworld reprint this article in the interest of our readers .
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