"Nuclear Power Is Too Expensive."
Yes and no. In fact, nuclear power plants are relatively cheap to operate. Averaging the costs over the life of the operation, a safely run plant can even be a cash cow, generating power at as low as 6 cents per kilowatt-hour, comparable to a coal-fired power plant. The problem is getting them built. A large reactor can cost several billion dollars, and construction delays -- as well as slowdowns forced by inevitable legal challenges -- have been known to drive up construction costs by $1 million a day.
This problem is nothing new; it has plagued the industry since the 1970s. Years before the Three Mile Island disaster turned public opinion against the atom, the U.S. nuclear sector was already in trouble on account of legal and bureaucratic changes enacted under Presidents Richard Nixon, Gerald Ford, and Jimmy Carter that made new plants easier to stop with lawsuits -- usually filed by environmental and citizens' groups -- and regulations more unpredictable. That spooked investors, who in turn raised interest rates on borrowing for plant developers. The then-ongoing recession, which depressed energy demand, didn't help; neither did the plummeting price of oil and deregulation of natural gas that followed in the 1980s. Today, the industry argues that plant construction can only happen with the help of tens of billions of dollars in federal loan guarantees, which transfer financial risks onto taxpayers.
But the fact is that nuclear power has never succeeded anywhere without enormous government backing. Until 2004, the French government wholly owned Électricité de France, the utility that operates all French nuclear power plants, and the government still controls more than 80 percent of it today. The Chinese government also largely or wholly owns China's nuclear-power utilities. And nuclear is hardly the only energy source that hasn't stood up in the free market once you factor in the external costs. Consider how much of the Pentagon's $550 billion-a-year budget goes toward securing oil supplies. For a country like Japan or South Korea, with virtually no domestic energy supplies, nuclear power may be worth the upfront costs if it allows for a measure of energy security. As for the rest of us, nuclear power may also come to seem a good deal, once you factor in the risks of climate change.
JEAN-PAUL BARBIER/AFP/Getty Images


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