The economic slowdown and collapsing oil prices have generated plenty of hand-wringing over the fate of renewable energy. But nuclear power isn’t off the hook, either.
South Africa’s decision Friday to cancel plans for its second nuclear reactor is a sign that the nuclear industry has yet to overcome one of its most dogged obstacles: economics.
State-owned utility Ekstrom said the $10 billion nuclear plant simply wasn’t affordable, the WSJ reports, which means the power-starved country will likely turn back to coal for electricity. The announcement came just after French utility EDF said costs at its new nuclear plant in France are 20% more than expected.
But the bottom line matters, especially during a global recession. Upfront capital costs for nuclear projects have risen as much or more than other generation technologies in recent years, thanks both to higher prices for things like steel and a dearth of technological expertise after decades in the desert.
– more at wsj. 8 Dec 2008