The West and the Wind

The Western Governors Association surprised a lot of people last year when it issued strong support for nuclear energy among its energy provisions. You can read Nuclear Notes’ coverage of that here.

As I wrote then, the interest isn’t that it was nuclear-friendly, it’s that it focused so intensely on energy issues. This year, they’ve gone further, sending a letter to some key Congressional chairmen:

The Western Governors' Association urged Congress to increase federal loan guarantee authority for new nuclear development by $36 billion, the amount included in President Obama's 2011 budget request. Doing so would enable the financing of six to nine additional new reactors beyond those previously authorized, the governors said.

And why do they want this?

Writing on behalf of their colleagues, Idaho Gov. C.L. "Butch" Otter, WGA's chairman, and Washington Gov. Christine O. Gregoire, WGA vice chairman, said this increased loan guarantee volume "will encourage the kind of clean and reliable electric power that will ensure the long term economic and environmental sustainability of the West."

The full letter is at the group’s site.

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This feels a little ominous:

The American Wind Energy Association (AWEA) today announced that with only 700 megawatts (MW) added in the second quarter of 2010, wind power installations to date this year have dropped by 57% and 71% from 2008 and 2009 levels, respectively. Manufacturing investment also continues to lag below 2008 and 2009 levels.

Things have been tough all over, of course, and a chart at AWEA’s site shows that new build has surprisingly frequent rises and falls, meaning that this droop may be part of an established cycle. Might be both things in tandem. Still, ominous:

Beyond 2010: There is a dramatic drop in the project development pipeline after the 5,500 MW under construction—that is, there is no demand beyond the present “coasting momentum.” Without stable policy, without demand and new power purchase agreements and without new turbine orders, the industry is sputtering out.

I looked around a bit to see if someone had a better notion as to the wherefores of this development. Candace Lombardi at Greentech takes a stab:

The U.S. has stalled on building wind turbine manufacturing facilities. Two manufacturing plants have opened so far in 2010, compared to seven plants opening in 2008 and five in 2009, according to the AWEA.

"In effect, the U.S. is losing the clean energy manufacturing race to Europe and China, which have firm, long-term renewable energy targets and policy commitments in place," AWEA said in a statement.

It really does seem a combination of a nascent technology stalling in the face of dreadful economic times and an uncertain legislative environment. No business has been immune to these factors, but wind really seems to have been caught square. It’ll be interesting to see if AWEA’s quarterly reports show improvement in the next year or two.

Washington Governor Christine Gregoire.

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap

An Ohio School Board Is Working to Save Nuclear Plants

Ohio faces a decision soon about its two nuclear reactors, Davis-Besse and Perry, and on Wednesday, neighbors of one of those plants issued a cry for help. The reactors’ problem is that the price of electricity they sell on the high-voltage grid is depressed, mostly because of a surplus of natural gas. And the reactors do not get any revenue for the other benefits they provide. Some of those benefits are regional – emissions-free electricity, reliability with months of fuel on-site, and diversity in case of problems or price spikes with gas or coal, state and federal payroll taxes, and national economic stimulus as the plants buy fuel, supplies and services. Some of the benefits are highly localized, including employment and property taxes. One locality is already feeling the pinch: Oak Harbor on Lake Erie, home to Davis-Besse. The town has a middle school in a building that is 106 years old, and an elementary school from the 1950s, and on May 2 was scheduled to have a referendu

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin

NEI Nuclear Notes

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