After decades as the black sheep of the energy world, nuclear energy is making a comeback in the United States and many Western countries thanks to the global energy crisis. Back in December, at the COP28 summit, 22 countries, including the United States, Canada, the United Kingdom, and France, committed to tripling their nuclear power capacity by 2050 (from 2020 levels). Last month, 34 countries including the US, China, France, UK and Saudi ArabiaBy taking measures such as extending the useful life of existing nuclear reactors, building new nuclear power plants, and enabling terms to support and competitively finance the early introduction of modern nuclear reactors, Strive to maximize your potential.. ”
The world is beginning to reluctantly accept that technological bottlenecks limit solar and wind energy as large-scale replacements for fossil fuel energy. Furthermore, Europe has been unable to develop clean energy resources fast enough to meet global climate goals, with the Ukraine war exposing Europe's dependence on Russian energy.
However, the revival of nuclear power could hit a snag as financial institutions are reluctant to lend to what they see as a high-risk sector. Last month, the International Atomic Energy Agency held its first-ever nuclear summit in Brussels. Unfortunately, bankers appear reluctant to lend the $5 trillion that the IAEA estimates the global nuclear industry will need to develop by 2050.
”If bankers are uniformly pessimistic, it is a self-fulfilling prophecy.” former U.S. Energy Secretary Ernest Moniz said after hearing the opinion of a committee of international financial institutions. Related article: Chevron-Hess partnership could extend into next year Courtesy: Exxon
”As we have seen in practice, the risks of the project seem to be very high'' said European Investment Bank Vice President Thomas Ostross, adding that countries need to focus more on renewable energy and energy efficiency. said Ines Rocha, director of the European Bank for Reconstruction and Development, and Fernando Cubillos, a banker at the Latin Development Bank. The United States agreed, saying its lending priorities were tilted toward renewable energy and the grid.Nuclear power comes last,” Cubillos said.
”State involvement is needed, but I see no other model.Probably, fairly strong state involvement will be needed to make the project profitable” Ostros said.
State involvement
As Ostros pointed out, the nuclear sector will likely need significant government support to really take off at this point. To date, the U.S. government has been involved in nuclear power primarily through safety and environmental regulations, as well as research and development funding for uranium enrichment projects like HALEU. Recently, however, the federal government has become increasingly involved in the nuclear energy sector.
Over the past several years, billions of federal dollars have been committed to the development and demonstration of next-generation small modular reactors (SMRs) and advanced fuel cycle reactors. The U.S. Department of Export and Import has provided financing for overseas nuclear projects for more than half a century. EXIM issued up to $3 billion in interest on nuclear exports to Poland and Romania. Founded in 1934, the Ex-Im Bank of the United States operates as an independent agency of the U.S. government under the authority of the Export-Import Bank Act of 1945. Similarly, USTDA has committed to providing funding to the Export-Import Bank. Export of nuclear power technology to Poland, Romania, Ukraine and Indonesia. Much of the funding is directed towards technology activities, with an emphasis on the export potential of small modular nuclear reactors.
The federal government last month agreed to provide a $1.5 billion loan to restart a nuclear power plant in southwest Michigan, abandoning an earlier decommissioning plan. A nuclear power plant in Michigan will be the first nuclear power plant in the United States to be brought back to life after being abandoned.Personally owned holtec international plans to acquire and dismantle the 800-megawatt Palisades Power Plant in 2022. But now, if the plant can pass inspection and testing by the U.S. Nuclear Regulatory Commission, known as the NRC, it will be able to contribute to Michigan's power grid.
Michigan Governor Gretchen Whitmer welcomed the move.
”Nuclear power is our single largest source of carbon-free electricity, supporting 100,000 jobs directly and hundreds of thousands more indirectly across the country.” said former Michigan Governor and Energy Secretary Jennifer Granholm.
”Re-electrifying the Palisades will restore safe, 24-hour power generation to hundreds of thousands of homes, businesses and manufacturers.'' declared Chris Shinn, President and CEO of Holtec.
Meanwhile, California regulators have given the green light to run the Diablo Canyon power plant until 2030 instead of 2025 as the state transitions to renewable energy. pacific gas and electricThe plant's owner said it is receiving aid from the federal government to pay off the state loan.
Written by Alex Kimani, Oilprice.com
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