Whether you are pro or anti nuclear, I don’t care, but just stop it with the “renewables need subsidies” bullshit. Renewables are roaring ahead despite the loss of tax credits under the Trump administration.
It’s the nuclear industry that will need a constant and increasing supply of tax funding, starting with jumpstarting the nuclear fuel industry, which has lapsed in this country.
The US is still getting a large portion of fuel for our nuclear industry from foreign sources, as confirmed below by one of Donald Trump’s best friends.
The US is awarding $900 million each to Centrus Energy Corp. and two other nuclear fuel makers as part of an effort to restart domestic production and wean the US off of enriched Russian uranium.
The funding for Maryland-based Centrus will go toward the development of next-generation reactor fuel, according to the Energy Department, which is announcing the awards later Monday. Funding will also go to Peter Thiel-backed advanced nuclear fuel enrichment startup General Matter and to a subsidiary of Orano SA, which is planning an enrichment facility in Tennessee.
The announcement comes as President Donald Trump’s administration throws its weight behind expanding the US nuclear industry. Power demand is surging with the proliferation of data centers needed for artificial intelligence, driving electricity prices higher as politicians come under pressure to tame utility bills.
“Today’s awards show that this administration is committed to working hand-in-hand with industry and Congress to build a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow,” Energy Secretary Chris Wright said in a statement.
Energy Information Administration:
Uranium is the most-used fuel by nuclear power plants for nuclear fission. Uranium is a common metal found in rocks all over the world. Uranium occurs in combination with small amounts of other elements. Economically recoverable uranium reserves are located in the western United States, Australia, Canada, Central Asia, Africa, and South America.
Uranium production in the United States peaked in 1980, and uranium purchases by U.S. nuclear power plant operators from domestic suppliers peaked in 1981. Since 1992, the majority of uranium purchased by U.S. nuclear power plant operators was imported.
Duke Energy is one of the largest operators of nuclear plants in the US. This is from their state mandated Integrated Resource plan.
Duke Energy Integrated Resource Plan 2025:
Given the substantial upfront capital investment required for deployment of new nuclear generation (relative to other types of generation), support will be required in the form of cost overrun protection, which currently does not exist, or other cost mitigation measures.
Units 3 and 4 at Plant Vogtle were the first advanced reactor LLWR projects in the U.S. with two AP1000® units constructed and placed into commercial operation. The Vogtle project experienced significant delays and cost overrun, with the total cost more than double the original projected cost. Though some issues were unique to that project, the first and second movers for the next advanced reactor projects will be assuming construction risks and therefore will need some form of insurance to protect customers.
It is essential that the current tax credits that incentivize new nuclear generation remain in place, as they provide critical financial support for these investments and decrease investment risk, which will lead to lower overall costs for customers. In addition, the current tax credits that incentivize the efficient operation of the existing nuclear fleet are also essential, as they help keep energy prices low, with every dollar going back to customers. Further, the federal loan guarantee program, federal grant opportunities, and other mechanisms like public-private partnerships could provide crucial support.
Given the risks and long-lead time associated with constructing new nuclear, cost overrun protection would further decrease investment risk in a manner that would benefit customers.
In sum, without continued federal support, the financial risk of nuclear construction could deter development, slowing, delaying, or eliminating progress despite the substantial potential benefits of new nuclear generation for customers. Importantly, because Duke Energy is a regulated utility, federal support directly benefits customers in the form of lower rates and lower overall financing costs.
I think it’s terrible that ratepayers have to pay for cost overruns of solar farms and grid batteries.