{"id":2282528,"date":"2024-06-24T09:21:40","date_gmt":"2024-06-24T13:21:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/taxpayers-pick-up-the-tab-on-nuclear-energy-washington-examiner\/"},"modified":"2024-06-24T09:31:57","modified_gmt":"2024-06-24T13:31:57","slug":"taxpayers-pick-up-the-tab-on-nuclear-energy-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/taxpayers-pick-up-the-tab-on-nuclear-energy-washington-examiner\/","title":{"rendered":"Taxpayers pick up the tab on nuclear energy &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftaxpayers-pick-up-the-tab-on-nuclear-energy-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2282528&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A study from the Copenhagen School of Business highlighted the financial burdens of the U.S. nuclear power financing model on taxpayers. It reveals that the extended construction \u2064phases\u200b of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-denies-leak-after-fuel-rod-trouble-reported-at-nuclear-power-plant\/\" title=\"China denies leak after fuel rod trouble reported at nuclear power plant\">nuclear power plants<\/a>, which can last between 8 to 16 \u2062years, often result in \u200ccost overruns and delayed timelines. Government interventions such as loan guarantees, state ownership, and \u200bregulatory frameworks help make these projects financially viable by reducing investor risk and placing much of the financial burden on taxpayers. For instance, the recently completed reactors at Georgia\u2019s Vogtle Nuclear Power Plant \u200btook nearly 15 years and $34 billion to complete, overshooting their original schedule and budget. The study \u200bsuggests that government subsidies will likely continue to be necessary to support nuclear energy development despite its potential for substantial clean energy production.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>(The Center Square) \u2013 The current United States financing model for nuclear power poses significant costs to taxpayers, a study from the Copenhagen School of Business reports.<\/p>\n<p>The study shows that projects are especially vulnerable during their extended construction phases, which typically span between eight and 16 years for recent undertakings. This extended duration often results in exceeding both time and budget estimates.<\/p>\n<p>The study reports that nuclear power plant projects become financially viable primarily due to government intervention aimed at mitigating investment risks, such as loan and revenue guarantees, full or partial state ownership of suppliers or utilities, and regulatory frameworks that oblige future consumers to contribute to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-home-construction-unexpectedly-plunges-as-bidenflation-pushes-costs-through-the-roof\/\" title=\"New Home Construction Unexpectedly Plunges as Bidenflation Pushes Costs Through The Roof\">construction costs<\/a>.<\/p>\n<p>\u201cIn this case, the institutional investors issuing loans to the utility company owning the Nuclear Power Plant receive a guarantee from the host government that any outstanding debt will be covered by the state in case of default by the utility company,\u201d the study said. \u201cIn this way, the investment becomes more attractive to the financier since the risk is significantly reduced.\u201d<\/p>\n<p>Consequently, the likelihood of securing funding for the nuclear power plant increases, facilitating the project\u2019s progress and completion by shifting the risk to taxpayers.<\/p>\n<p>Two reactors at the Vogtle NPP in Georgia finally completed construction after nearly 15 years in July of 2023 and April of 2024, respectively, costing $34 billion to complete.<\/p>\n<p>Both units were expected to be complete by 2017 but suffered several delays. Vogtle Units 3 and 4 are projected to produce 17.2 million megawatt-hours of clean energy annually, effectively preventing the emission of 10 million metric tons of carbon dioxide each year, according to the Department of Energy.<\/p>\n<p>The nuclear energy market may require government subsidies for some time, the report notes. The Biden administration has opted to fund billions of taxpayer dollars into nuclear energy programs and companies by combining subsidies and tax credits.<\/p>\n<p>\u201cIn order to make a decision, the financial risk of these projects needs to come down,\u201d Jacopo Buongiorno, professor of Nuclear Science and Engineering at the Massachusetts Institute of Technology (MIT), told The Center Square. \u201cWhoever will be the user of these machines has a certain tolerance for project risk.\u201d<\/p>\n<p>In other words, some companies will be able to afford to fund their own projects and some won\u2019t. Buongiorno said that it is up to the companies to say when they can continue on without taxpayer aid.<\/p>\n<p>The Biden administration has done a lot to subsidize the U.S,\u2019 nuclear sector. One notable provision is the Zero-Emission Nuclear Power Production Credit, which offers a $15 per <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-reduction-act-includes-30-billion-for-nuclear-reactors-at-risk-of-shutdown\/\" title=\"Inflation Reduction Act Includes  Billion for Nuclear Reactors at Risk of Shutdown\">megawatt-hour credit<\/a> for electricity generated by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-says-europe-should-restart-dormant-nuclear-power-stations\/\" title=\"Elon Musk Says Europe Should Restart Dormant Nuclear Power Stations\">existing nuclear plants<\/a>. This credit gradually decreases as electricity prices exceed $25 per MWh\u200b.<\/p>\n<p>The Department of Energy\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-fisker-automotives-lost-taxpayers-tens-of-millions-top-investors-turn-to-proterra\/\" title=\"After Fisker Automotives Lost Taxpayers Tens of Millions, Top Investors Turn to Proterra\">loan program office<\/a> has funded billions of dollars for nuclear energy in accordance with the Inflation Reduction Act. Likewise, the Infrastructure Investment and Jobs Act included subsidies for the existing fleet of 94 reactors to make sure they are financially viable.<\/p>\n<p>In March, the DOE approved a loan of $1.52 billion for a plant in Michigan. On Monday, the Department announced that it intended to fund $900 million for small modular reactor technology projects.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>The recently passed ADVANCE act may help to address the lengthy process of environmental evaluation and permit approval from the Nuclear Regulatory Commission, which can delay plant construction. The act also streamlined the process for acquiring licenses.<\/p>\n<p>\u201cThe act is a step in the right direction,\u201d Buongiorno said. \u201cIs it enough? Who knows. The market will tell soon enough.\u201d<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A study from the Copenhagen School of Business highlights that the U.S. financing model for nuclear power significantly burdens taxpayers. It points out that the lengthy construction phases of nuclear projects, ranging from eight to 16 years, make them particularly costly and financially risky<\/p>\n","protected":false},"author":3250,"featured_media":2282529,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/iStock-1223356311-1024x683.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[32412,32411,8956,32076],"class_list":["post-2282528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-government-spending","tag-nuclear-energy","tag-taxpayers","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/iStock-1223356311-1024x683.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2282528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3250"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2282528"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2282528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2282529"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2282528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2282528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2282528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}