Delays For SC Nuclear Plant Put Pressure On the Industry
mdsolar sends this news from the Associated Press:
Expensive delays are piling up for the companies building new nuclear power plants, raising fresh questions about whether they can control the construction costs that crippled the industry years ago. The latest announcement came this week from executives at SCANA Corp., which has been warned by its builders the startup of the first of two new reactors in South Carolina could be delayed two years or more. ... That announcement may well foreshadow more delays for a sister project in eastern Georgia, and they have caught the attention of regulators and Wall Street. 'Delays generally cause cost increases, and the question becomes who's going to bear the costs?' said C. Dukes Scott, executive director of the South Carolina Office of Regulatory Staff, a watchdog agency that monitors SCANA Corp.'s spending.
None of this is helpful for the nuclear power industry, which had hoped its newest generation of plants in Georgia and South Carolina would prove it could build without the delays and cost overruns so endemic years ago. When construction slows down, it costs more money to employ the thousands of workers needed to build a nuclear plant. Meanwhile, interest charges add up on the money borrowed to finance construction. A single day of delay in Georgia could cost $2 million, according to an analysis by utility regulators.
None of this is helpful for the nuclear power industry, which had hoped its newest generation of plants in Georgia and South Carolina would prove it could build without the delays and cost overruns so endemic years ago. When construction slows down, it costs more money to employ the thousands of workers needed to build a nuclear plant. Meanwhile, interest charges add up on the money borrowed to finance construction. A single day of delay in Georgia could cost $2 million, according to an analysis by utility regulators.
It always amazes me to hear about cost overruns and delays with new nuclear plants considering that in essence they're little more complex than coal plants, which keep popping up everywhere without any apparent issues.
So, is it just the red tape causing delays, or is it something else which make a nuclear plants so much more complex than a coal or gas plant?
Site & blog: http://www.mayaposch.com
It's the nuclear industry, after all. The problems are all going away next time.
First of all, nuclear power plants are far more complex than coal plants. Sure, the steam to electric part is identical, but controlling a nuclear reaction requires far different parts than crushing and burning coal.
Secondly, coal fired power plants are not "popping up everywhere" in America. No new coal plants will be built anytime soon, because 111(b) prevents new sources of electric generation that emit more than ~1200 lbs CO2 per MWh (coal is ~2000 lbs). A few plants have opened in the past five years; we won't see any more.
Thirdly, it isn't "red tape" that caused this latest delay -- it's the inability for suppliers of key components of the power plant to deliver the materials on time. The parts are specialized, the vendors capable of building (some of) those parts few and far between, and the list of parts that must be assembled in order rather long. Any delay ripples through the project, and the loan (plus interest) needs to get paid back, even if the plant isn't operating yet.
The big risk in nuclear construction is a financial risk. It isn't until much later that the nuclear reaction itself becomes a challenge.
Support a few technologists in Washington.
Here is an October 2013 article about a protest against the tax: Georgia Power Nuclear Construction Cost Recovery Tariff Excites Local Protest
And here's an organization that is protesting the tax: STOPCWIP.COM, which is short for STOP Construction Work In Progress
They point out that the Nuke owners are guaranteed a 11.5% return no matter how late the plant is:
In 2009, the Georgia General Assembly passed “Georgia Nuclear Energy Financing Act,” making it legal for Georgia electric utilities to charge customers in advance to construct the nuclear reactors. The Georgia Public Service Commission (PSC) subsequently approved Georgia Power and other owners of Plant Vogtle to charge the CWIP tax which will be collected during the whole construction period, no matter how long it will take, and allow Georgia Power and the other Vogtle owners a guaranteed profit with a protected return on investment of 11.15%.
The AP-1000 is a brand new design and apparently they are having troubles building many of the components, as well as with the in place fabrication techniques. In theory, once they fix those problems follow on plants should be able to be built faster because the teething problems would be solved. the reality is it will be hard to convince people to build them because of the delays.
I'm a consultant - I convert gibberish into cash-flow.
But also on the consumers of electricity.. Just as the feds want. Bleed us dry.
It all trickles down to the 'guy on the street in the end, and we are the ones that pay..
---- Booth was a patriot ----
Typically the endless lawsuits and anti-nuclear activism are the source of delays for nuclear construction. Even if not directly, then by proxy of the NRC, which is ineffective thanks to regulations based on ALARA and pseudo-science (LNT). If the NRC regulated based on solid science and legitimate safely concerns, it would be tremendously less expensive to meet nuclear safety standards. Unfortunately, our presidents have had a habit of appointing unqualified and nuclear-hostile people like Gregory Jackzo to lead the NRC, so the result is no surprise.
Another source of delay, is the lack of nuclear construction for decades, leaving the construction industry and supply chains to languish. Neither cost is inherent in nuclear construction, and both can be corrected. Delays of any large construction project are very expensive, and this is the primary means employed by anti-nuclear ideologues to drive up the cost. The submitter (mdsolar) may or may not have participated, but clearly has an axe to grind and the willingness to exploit the situation to peddle his ideology
Meanwhile, interest charges add up on the money borrowed to finance construction. A single day of delay in Georgia could cost $2 million, according to an analysis by utility regulators.
This help explain why a good 35% of adult Americans' debt is in collections.
But then, we go ahead and brag about how good a standard of living we enjoy as compared to those other world citizens, conveniently refusing to mention that most of that standard of living is financed by borrowed cash!
They went wrong before operating. It's better not to build them, but not starting them at least avoid the cleaning costs, when things go wrong.
And things will go wrong, become there must be a need to upgrade to the next, "now really 100% secure" new technology.
Can anyone cite a case where a nuclear power station was brought on line in time and on budget? OK, even only a little bit late and a little bit over budget? Oh alright, not too late and not rediculously over budget?
The only reason I can see for building them is to make more fissile materials for nuclear warheads. Why do you think Washington and various other countries are so upset about Iran's nuclear energy programme? What's more, the design of all the world's nuclear power plants are scaled up versions of a nuclear submarine's reactor, not particularly safe or efficient, and there's been little to no research into developing safer, more efficient ones in the past half a century. Nuclear reactors are and always have been built on a foundation of misleading information, misdirection, and bare-faced lies. Did you know that the very first large scale British nuclear reactor wasn't designed to generate a single watt of electricity? It was purely to produce fissile materials for warheads, nothing else. Generating electricity is an afterthought.
Power companies should give up on nuclear completely and refuse to build new plants of any sort unless regulations are loosened to make construction affordable.
If the government want emission-free power plants, the government should build them.
SCE&G, which is building the plants with state-owned utility Santee Cooper and has a 55 percent stake in the project, won regulatory approval to raise rates annually for its current customers to help pay for the construction of the nuclear power plants. SCE&G ratepayers already have ponied up numerous increases for the nuclear project, the latest one approved in May. “We have warned from the start of this risky project that it would face significant delays and cost increases, so there is unfortunately no big surprise in SCE&G’s stunning news,” said Tom Clements, director of Savannah River Site Watch (SRS Watch). “SCE&G ratepayers, already facing seven rate increases to pay in advance for the nuclear project, will likely take it on the chin by the cost increases due to the announced delays.” Read more here: http://www.thestate.com/2014/0...
Getting the facts completely wrong seems to be the main defining feature of nuclear fanbois. These delays are self-inflicted. http://www.thestate.com/2014/0...
It was politics to force nuclear as pork projects so other politics responded. An interesting thing to ponder is the lobbying from nuclear industry groups against thorium research - it had the potential to threaten their installed base and allow new players into the game. Also ponder lobbying against taking naval designs onto the civilian nuclear scene. The US nuclear industry ate it's own children. It's a slow slide down with dead cat bounces like the AP-1000 from when Westinghouse brought in some 1970s Japanese technology, and it's not going anywhere but down. Even South Africa put more effort into civilian nuclear than the US has for decades. If you want anything other than green paint on TMI you are going to have to wait and get something from China or India.
There's some AP-1000s about to go online any day now in China. I know I've been writing that for about 3 years but the expected commissioning date in the press has always been vague.
Honestly. This is just going to continue being a problem for these overly complex, Rube Goldberg device solid fuel, pressurized water reactors.
Creating the fission reaction is the EASY part. Even keeping it under control is fairly brain-dead simple. The problem is that a psychotic amount of over-engineering goes into a complex, heavily layered disaster shutdown system. And, because the engineering is so complex, and the tolerances so exacting, even marginal variances explode the project from expensive to "snorting cash like a 50,000hp vacuum" boondoggle in negative three seconds.
This is one of the big reasons I'm a huge fan of molten salt reactors. In an emergency, you dump the reactor vessel, separating the fuel from the catalyst.
The reaction stops. And the system cools off. PLUS, there's no water under high temperature and pressure looking to explode and turn your powerplant into the Oz Scarecrow (they tore my legs off and they threw them over there, and then they tore my chest out and threw it over THERE!).
Chas - The one, the only.
THANK GOD!!!
http://hardware.slashdot.org/s...
"It has long since turned into politics" In a way, nuclear power is suitable to totalitarian systems that believe they will exist forever. There is no problem with nuclear waste in an eternal police state. In a Jeffersonian democracy, the possibility of a hiatus in police power is needed to rescue the liberty that authority is normally constituted to preserve. That does not really fit with being able to permanently guard nuclear waste.
Georgia Power's rate-payers are already paying a surcharge to finance construction at Plant Vogtle, without a whimper of public complaint. I'm sure they'll stand for much more. No need to dip into bonds or file insurance claims.
You people do realize this is all a dog-and-pony show for public consumption anyway, right? TPB simply don't want 2 more reactors at Vogtle just yet, for a number of reasons I'll leave to the reader. Doubtless the same in SC. I'm not necessarily disappointed, but I do see them wanting to pump surface water away from where Nature put it, to service megalopoli, NSA datacenters, and whatnot, at some point. Meanwhile we can enjoy our rivers and GP's largesse with solar payments of late. Possibly at the cost of reviving corridor development monopo...er, authorities still on the books but unimplemented, to build gas pipelines and gas-fired power plants and so forth.
The whole thing is a racket. but it's "our" racket, by damn. It says right there "Georgia", right? So we'll keep paying, dumbasses that we are.
Modern Nuke plants make 10s of Millions per day of operation.
They are not worried about a half a billion in over run expenses. they will make that back in two years. Pay off loans in 5-10.
"Print Money" like it was nothing in 15.
I'm not worried.