Skip to main content

Learning the Wrong Lessons from the Diablo Canyon Closure

By
Diablo Canyon
Pacific Gas & Electric Co. made national news when it announced last week that it will operate the Diablo Canyon nuclear power plant through its original license period and then retire the facility in the mid-2020s. Some parties are suggesting—wrongly—that the agreement is a blueprint for nuclear plant retirements in other states.

Don't buy that argument. To be clear: The convergence of policies and events that drove the Diablo Canyon agreement is not desirable and should not be replicated. California residents now confront a risky experiment based on an unbalanced energy future. As NEI's Revis James wrote yesterday at Real Clear Energy:
The anti-nuclear lobby says that a future primarily powered by renewable sources of energy is upon us. We’ve done the math, and the equation doesn’t balance. Rather, this seems more like a flawed experiment that will put greater pressure on consumers through higher electricity prices while increasing, not decreasing, CO2 emissions. It’s not a gamble that others should try.
Some proponents of the agreement wrongly believe they can replace one carbon-free source of electricity with another instead of working to maximize carbon reduction by seeing all zero-emissions sources work together. But there is no guarantee that the anticipated increase in renewables, energy efficiency and energy storage will fully replace Diablo Canyon—which provides 24 percent of the state's carbon-free electricity—by 2025.

In Wisconsin, greenhouse gas emissions jumped more than 15 percent after the premature closure of the Kewaunee nuclear facility. In 2015, New England's emissions jumped by 7 percent because of the shutdown of Vermont Yankee the year before. Emissions will climb even higher when the Pilgrim reactor in Massachusetts closes in 2019.

A study by IHS Energy found nuclear energy's inclusion in a balanced energy portfolio lowers the cost of generating electricity by more than $93 billion per year compared to an energy portfolio limited to renewables and natural gas.

With that in mind, it's better to think of California as an anomaly rather than template for future energy policy.
Labels:

Comments

Post a Comment

Popular posts from this blog

Fluor Invests in NuScale

By
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...
1 comment
Read more

Wednesday Update

By
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...
Post a Comment
Read more

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

By
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...
Post a Comment
Read more