Will Australia’s Carbon Price Lead It to Rethink Nuclear?

Australia has decided to put a price on carbon in the hope that it can kick-start its renewable energy i Julia explains. ndustry and reduce emissions.

The Australian government has unveiled plans to impose a tax on carbon emissions for the worst polluters.

Prime Minister Julia Gillard said carbon dioxide emissions would be taxed at A$23 ($25) per ton from 2012.

The country's biggest economic reform in a generation will cover some 500 companies. In 2015, a market-based trading scheme will be introduced.

Households are expected to see consumer prices rise by nearly 1%, and the move has been criticised by the opposition.

The announcement by Gillard has led to a healthy debate about the plan, to put it mildly, as you can see on the comment section of this article. The greater question is: Will this lead to Australia to reconsider nuclear power?

"No one will build coal-fired power plants," he [Paul Breslin]said. "It is already sending a signal to prospective investors 'don't do it'. You couldn't possibly build a new coal-fired power station at $20 per ton, and the price is definitely going to rise.

"If the carbon price keeps going up in the 2030s, we will need to be moving to gas-fired electricity generation. Safe nuclear, although politically difficult, should be looked at."

Nuclear energy would seem a natural fit for Australia. It has high per capita emissions, abundant uranium resources and seems especially sensitive to the nastier consequences of climate change in Australia itself. But then again, the country has never really shown any great enthusiasm for embracing nuclear. Even the prime minister has distanced herself from the technology. And there’s the question of whether and how the whole carbon pricing plan will come to fruition.

But with the need to keep the lights on (and the air conditioners humming) and with a potentially rising price on carbon, nuclear energy will surely become more attractive over time. Stay tuned.

For more on the carbon price plan, see this website from the Australian government.

Activists' Claims Distort Facts about Advanced Reactor Design

Below is from our rapid response team . Yesterday, regional anti-nuclear organizations asked federal nuclear energy regulators to launch an investigation into what it claims are “newly identified flaws” in Westinghouse’s advanced reactor design, the AP1000. During a teleconference releasing a report on the subject, participants urged the Nuclear Regulatory Commission to suspend license reviews of proposed AP1000 reactors. In its news release, even the groups making these allegations provide conflicting information on its findings. In one instance, the groups cite “dozens of corrosion holes” at reactor vessels and in another says that eight holes have been documented. In all cases, there is another containment mechanism that would provide a barrier to radiation release. Below, we examine why these claims are unwarranted and why the AP1000 design certification process should continue as designated by the NRC. Myth: In the AP1000 reactor design, the gap between the shield bu...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...

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

Search This Blog